CCID Consulting Forecasts Ten Trends of China&aposs ICT Market in 2008

BEIJING, Dec. 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), discusses its forecasts for the ten trends of China' ICT market in 2008.

BEIJING, Dec. 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), discusses its forecasts for the ten trends of China' ICT market in 2008.

The integration ability of the industrial ecosystem becomes the core of competitive strength

As the ICT markets continue to merge and as demands continue to change, enterprises and industrial chains will find it increasingly difficult to maintain their competitive strengths. The ICT industry's aim will primarily be to improve the industrial chain, integrate the industrial ecological resources, and innovate and change business models.

Only through the restructuring of the industrial chain, the inclusion of affiliated enterprises focusing on similar or related services, and with end- users able to receive products and services, can a fully harmonious industrial ecosystem be realized.

By integrating industrial chains, enterprises and users, the ICT market can rely on their organic relationship to convert an isolated linear system into a double-win closed-loop system, creating a circled sustainable industrial ecosystem. This would thus form a new competitive strength.

High-performance computing leads to high-performance services, which speed up the popularization of business applications

From the clusters, virtualization and new cloud computing to Server Farm 2.0, we are approaching the use of high-performance computing. With this breakthrough, high-performance computing will evolve into high-performance services. Based on the Internet's complex computing model, high-performance computing could bring about automatic management, automatic equalization, automatic restoration, uniform system image and real-time monitoring so as to broadly reduce the complexity and usability of IT management.

Small-sized enterprises can purchase data centers at low cost and real- time through Amazon EC2. This has proven the value and popularization of high- performance business. As seen in the surge of IBM, Google, Microsoft, Sun and Dell, it is expected that high-performance computing speeds up its popularization by virtue of the distortion of high-effect services. However, the unification of technical specifications will be the first challenge. Security and privacy of high-performance services will also be a major concern for users.

The 2008 Olympic Games speeds up developments in mobile communications, NGN, wireless access, digital TV, semiconductor lighting and RFID

A high-tech Olympic Games will provide great opportunities for Mobile, NGN, wireless access, digital TV, semiconductor lighting and RFID. These opportunities would include the use of mobile communications based on 3.5G; NGN based on IPv6; WLAN/WiMAX that realizes seamless and wireless network; bidirectional wired digital TVs; LEDs with energy-saving, environmental protection and long service life characteristics; and RFID, which is widely applied in electronic ticketing, IDs, safety tracing systems, food safety monitoring and assets management.

Hardware, software, consumer electronics and telecom to be more service oriented

SAAS will change the business model of the traditional software industry. On one hand, SAAS will expand to total solution on the basis of renting CRM. Functions such as OA, CRM, financial management, HR management, security management and mobile business are converged into a total solution. Because of its briefness, moderate price and flexibility, the solution is popular among SMEs. On the other hand, the extension of SAAS servers will expand. In addition to professional CRM servers and traditional software manufacturers, telecom operators and ISPs also join the competition.

In fact, hardware will also become a service in the future. In China, Volkswagen has begun to ask hardware providers to repurchase related products and offer services according to global readiness. The hardware is not only a kind of product, but also a tool of providing related services to users' production and management. The SAAS era is near.

In consumer electronics, Apple's 3C convergence presents the close relationship between CE and content services. In telecom, the trend among operators is to provide information services. The trend has become a common strategic choice and guide.

Green ICT is prevailing among the semiconductor, product, database and IDC fields

Under the rise of energy prices, the state's energy saving policy, and rising corporate social awareness in the environment, ICT enterprises and users are attempting to be dedicated to creating a healthy environment.

Because semiconductor manufacturers are devoting themselves to the R&D of chips at low energy, the ratio of performance and energy consumption becomes an important measurement index. Downstream products such as PCs, printers, mobile phones and consumer electronics also pay attention to power waste reduction, environmental-friendly quality and circular application. Furthermore, not only the hardware industry, but also the software becomes green. The green software industry based on the green library is rising to save storage resources and system cost, reduce energy waste and increase efficiency. All are attempting to be the first to present a green effect in the IDC application.

A favorable business opportunity is presented to local mobile phone manufacturers as 3.5G begins

The establishment of China 3G begins directly with 3.5G, symbolizing that China's mobile terminal begins with 3.5G. To this end, it is a favorable business opportunity to local mobile manufacturers. On one hand, it can be by virtue of the alternate of standards to remain synchronous even when ahead of international manufacturers. On the other hand, 3G operators must increase a customized scale to enable local manufacturers to use an opportunity to change a competitive weakness.

Based on its magnification and rapid transmission, 3G network bandwidth has broadened its data services in video and multimedia applications. Because the degree of recognition and acceptance by consumers of data services is lower, the operators must customize a mobile promotion to drive its service development. With the expansion of the scale of customization, operators' customized services have transferred from brand image customization to an in- depth customized model. Operators also require terminal manufacturers to modify R&D and design mobile phones. China's manufacturers expect to get a bigger market share in this process. However, "survival of the fittest" and brand centralization are ineluctable trends.

Growth in IC market becomes difficult to maintain

It is difficult for China's future IC market to present a growth rate over 30%, as fewer international electronics production are transferred to China, and that the output of China's units becomes saturated after a rapid growth for years even if they have a certain growth rate, and the fall of IC price will also influence the future IC market.

The IC industry is less mature than traditional industries, but it isn't a new industry and market, so it grows slowly as compared to the whole electronic industry. The fluctuant development of periodicity reserves everlastingly, but the future fluctuation will become lower and lower. In a word, IC industry becomes more mature.

Performance evaluations to become an important criteria in deciding on enterprise users-based IT and service systems

Chinese enterprises have come to realize the value of information facilities in the advent of information technology in China during the past 20 years. Companies have grown accustomed to utilize the technology available and make wise investments, leading to a more mature market. Users are now more sensitive to competition and environment, and they expect a quantitative, qualitative and scientific system to demonstrate whether the investment in IT system and services can realize business strategies, optimize business flow, drive business innovations and enhance enterprise dynamic adaptability. IT has transformed from a simple technical tool to a core business solution that affects business strategy, that IT services frequently appear on the stage not only to offer a differentiation competition but also to have a service form similar to service-added value, with a value that exceed that of traditional products. To this end, the relationship between users and IT service providers gradually turns into an indispensable partnership, from the relationship of supply and demand. The importance of products begins to scale down, but the importance of services including plan consulting, flow streamlining, and training begins to scale up.

Industrial application trends become more business-oriented, demand transfer to flexible and adaptive IT platform.

After the integration of data and application, the demand of industrial users turns to business integration and innovation. The industrial users' core demands are technology's highly efficient support, guiding ability to innovate business, and business value. Industrial users urgently need a flexible and adaptable IT platform. The rise of SOA and enterprise mobilization reflects a trend to restructure the platform and extend the innovation.

After the customization of standards, the development of SOA technology drives enterprises' IT applications to put up a flexible and open architecture through service modularization. The architecture improves heterogeneous system alternatives, reduces management complexity and provides service support. The users are expecting the maturity of SOA and are careful in choosing their cut- in point. By adopting these standards, enterprises are more flexible in information management and business alternatives, allowing more improvements in enterprise management, decision and business promotion.

Implementation of e-commerce in traditional industries will reshape current business structure

If the coming of the Internet undermined the power of traditional media for the first time, in the future it will infiltrate the traditional industry to break down the current operating value of more enterprises within a wider range. The Internet will be embedded in the business chains and change their external business model and internal support model via e-commerce.

Netsun is publicly listed in the market to draw the attention of the industry, and to urge the blending between traditional industry and e-commerce. The revolution and platform expansion of Alibaba makes e-commerce a new topic of B2B. Moreover B2B combines with the industry to change a role of e-commerce platform, and offer opportunities of mode development to the e-commerce.

A new breakthrough of B2C development model based on PPG leads to a model duplication. The e-commerce model of PPG is simple and short of core competitive power, but it can enlighten an innovation of B2C model and bring more traditional enterprises to B2C. As the direct-selling value, B2C will evolve into a perfect choice in the model revolution.

The changes of C2C make the market full of competition and guesswork. Taobao has a steady position, but its absent profit model gives Taobao plenty to worry about. Paipai has expanded silently, Eachnet has innovated its business model and Baidu has reappeared late in life to bring competition to Taobao. Moreover it is urgent for C2C to change and innovate its profit model.

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: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as "CCID Group"). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company's business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific region and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.

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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