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CCID Consulting: China's Linux Market’s Growth Rate Slowed down in 2008Q2

2008-08-21 15:16 1371

Product Lines Cluster and Alliance Become Important Competitive Strategy

BEIJING, Aug. 21 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on China’s Linux market in 2008Q2.

CCID Consulting’s data shows that the size of China’s Linux market in 2008Q2 reached 43.1 million Yuan, up 16.2% over 2007Q2. Compared with 2007Q2, the grow rate has slowed down, largely due to decline in centralized purchasing. Large industrial order is few; meanwhile, as the market becomes mature, industrial growth rate starts to slow down. The market transfers from concentration to dispersion, with competition heating up. Also seen is the transition from single server and desktop products to wider product lines and even competition of industrial chain alliance.

Product Line Cluster and Industrial Alliance Become Manufacturers’ Important Strategy

As Linux market’s subject, currently, server still swung around edge application’s penetration to edge core application. It would take a long time to realize a breakthrough in the finance and telecom industries, so Linux manufacturers have to seek a breakthrough point besides desktop and server so as to drive Linux’s sustainable development. CCID Consulting’s research shows that China’s major Linux manufacturers have transferred from Linux server and desktop products to product line cluster. Manufacturers’ competition is heating up, that competition has transferred from single manufacturer’s strength to industrial alliance.

Besides original server and desktop products, Red Flag actively cooperates with Intel and spare no effort to mobile Linux products. Red Flag’s Asianux Company in Wuxi enters its practical operation stage by employing R&D talents and further strengthening joint development and testing with other partners; it acquires more authentications and improves its bargaining power. Turbolinux strengthens the cooperation with MySQL and Intel to promote Linux’s extended application. China Standard Software enlarges influence in Office field, build credible and secure philosophy and implement centralization, platform war and service strategy with Linux products. Novell develops its identity authentication and network management products’ advantages to drive Linux sales. Novell cooperates with Microsoft to provide users with more interoperability in high performance computing and virtualization fields. Besides developing JBoss middleware products, Red Hat releases OSCI, which aims at financing, governments, telecom, medical care and manufacturing.

Product line cluster marketing and manufacturers alliance outgoes clear single to market, Linux industrial market’s competition width and hierarchy will expand manufacturers’ solutions in regions and industries will have more active effort so as to drive the whole market’s development.

Regional Markets will Disperse; SME and Non-Traditional Markets Become More and More Important

Because of economic rapid growth and users’ IT application level’s continuous improvement, the big orders of governments, finance and telecom in the early stage of IT application construction are fewer than before. Market demands transfer from concentration to dispersion.

As for regional markets, the growth rate of IT application level in North China, East China and South China will gradually slow down; the regions with low IT application foundation, such as Northeast, Northwest and Southwest will enjoy rapid growth. The market will develop to 2-3 tier cities; SMEs’ huge base, rapid developing IT application demands and sensitivity for price will drive the Linux’s development in SME market; the demands of manufacturing, circulation industry, education, medical treatment and social charity industry will gradually release, these fields will become new highlights.

 About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China.

Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting’s customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

For more information, please contact:

Cynthia Liu

Coordinating Manager

CCID Consulting Co., Ltd.

Tel: +86-10-8855-9080

Email: liuyan@ccidconsulting.com

Source: CCID Consulting Co., Ltd.
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