BEIJING, Dec. 24 /PRNewswire-Asia/ -- 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 middleware market.
Market Review
1. Market Size and Growth
As an important component of basic software, middleware software, OS and database formed a huge industry worldwide, a market with the most rapid development in China's software industry. In 2008, the size of China's middleware product market reached 1.546 billion Yuan, up 19.2% year-on-year.
Figure 1: Size and Growth of China's Middleware Market, 2004-2008
http://www.ccidconsulting.com/upload/14065.jpg
Source: CCID Consulting, Dec.2008
2. Market Characteristics
The whole market remains generally stable in 2008, mainly dominated by IBM, ORACLE (BEA) and TongTech. IBM's position is difficult to replace, that although ORACLE acquired BEA, its market share is still behind after IBM. With ORACLE still in the process of merging former BEA's products and channels, the market pattern remains more or less the same.
As for market segments, middleware expands in finance, telecom, enterprise-grade markets. The top three middleware manufacturers in China have different industry bases: IBM occupies finance industry; ORACLE (BEA) the telecom industry; TongTech has breakthroughs in enterprise-grade market and e-government fields. Although they have their own industry base, they also have mutual penetration, e.g. IBM sets foot in telecom industry, TongTech has achievements in finance industry. The global finance crisis has a greater efftec on IBM than others. TongTech made considerable advances in the telecom market, its TongTech's TongIntegrator 3.5 in 2008 had good sales in 2008.
In 2008, China's middleware market has following characteristics:
The market maintains rapid growth in 2008, but the growth rate slows down
In 2008, the sales revenue of China's middleware software reached 1.546 billion Yuan, up 19.2% year-on-year; the growth rate is higher than the growth rate of the whole software market. The global financial crisis affects middleware market.
Market concentration further improves, the shares of IBM and ORACLE account for over 50% of the total market
IBM still occupies the largest share of China's middleware market in 2008. After acquiring BEA, ORACLE becomes the second largest middleware. By the end of 2008Q3, the market share of IBM and ORACLE account for 52% of the total market. China's domestic middleware manufacturers will face a more competitive environment, such as TongTech, Primeton and Kingdee.
Application field penetrates into traditional industries
In 2008, there are few new powerful products and technology in middleware market. The major reasons are that on one hand, middleware technology are becoming more mature, manufacturers' pursue to technology return to the rational track; on the other hand, because of market concentration, middleware manufacturers slow down their product innovation. As for application field, with the gradual saturation of key industrial application, middleware manufacturers pay more attention to traditional industries' application.
SOA speed up deployment, middleware becomes system integration weapon
In 2008, middleware market's another characteristic is SOA has transferred from a concept to real IT architecture scheme. Enterprise integration manufacturers and enterprise software clients gradually accepted SOA, so more and more enterprises and industrial clients consider adopting SOA solution when they carry through information system integration and IT architecture, such as Haier, Dongfeng Motor Corporation, Maritime Safety Administration and Air Traffic Management Bureau. The major reasons are SOA's gradual mature and users' consciousness improvement. Besides, facing a more complex and ever-changing network, middleware plays an increasingly important role in system integration.
Market Trend
In next three years, the size of China's middleware software market in 2008 will reach 1.546 billion Yuan, the size in 2011 will reach 2.411 billion Yuan, and the compound growth rate is 15.9%.
Chinese governments' support to software industry is the powerful impetus of China's informatization construction. The Central People's Government of the People's Republic of China announces to use 4 trillion Yuan to expand domestic demands; traffic, medical health, cultural and education are the highlights. This action is benefit to middleware market's penetration to traditional industries. China's medical and education industries are in the stage, which has to implement informatization and strengthen informatization. Besides, enterprise-grade market and e-government will be affected by the action.
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
