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CCID Consulting: the Sales Revenue of China&aposs Linux Software Market in 2008Q1 is up 22.6% over 2007Q1

BEIJING, May 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 (HKSE: 8235.HK), announced today that its research shows sales revenue of China's Linux software market in 2008Q1 up 22.6% over 2007Q1.

BEIJING, May 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 (HKSE: 8235.HK), announced today that its research shows sales revenue of China's Linux software market in 2008Q1 up 22.6% over 2007Q1.

CCID Consulting releases the Analysis Report on China's Linux Software in 2008Q1. In 2008Q1, the sales revenue of China's Linux software reached 38 million Yuan, up 22.6% over 2007Q1, which keeps rapid growth in the whole OS market. Compared with Unix, whose market share decreased throughout the whole non-embedded OS market, Linux is up 0.2%, which shows Linux's industrial thriving vitality. Linux's growth benefits from the favorable national macro economy and the improvement of the Linux industrial chain in recent years.

Linux Application Extends, Ecological Environment Has Improved

As for desktop Linux market, with the drive of China's legal protection policies, the major PC manufacturers such as DELL, HP and Lenovo have signed preassembled protocol. Some second line manufacturers launch computers with Linux in consideration of cost reducing, which drives the development of the desktop market. Meanwhile, the desktop market starts to stride forward client application: on one hand, Linux preload rate has improved, which transforms donating CDs to hard disk OEMs; on the other hand, manufacturers are making an effort in the desktop market so as to provide more choices and experience.

Servers are still the major application for the Linux market. The depth and width of application network servers, high performance computing servers and database servers keeps expanding. As for the industry, Linux has acquired more approval from government, finance, telecom and post; as for the degree of application, Linux penetrates into core business. With manufacturers' broadening channels' distribution and improving partners' profit ability, the Linux market expands to unconventional key regions such as the northwest and southwest, and the 2-3 tier cities in key regions such as north China and south China.

The ecological environment of Linux's industrial chain is improving. Intel, IBM, SUN, Oracle, Google, Dell and HP are giving more support to Linux through joint tests, authentication and holding conferences; many system integrators, ISV and IHV develop many Linux applications so as to improve products' compatibility, interoperability, and binding degree.

Differentiation and Customization Trends, Mobile Linux Has a Bright Future

With the competition heating up, differentiated competition has become powerful weapons for manufacturers. How to find new service increasing points is the key to manufacturers' business development. Customized Linux, which is according to different industrial clients, is growing rapidly. Customized Linux systems aimed at hotels, lotteries and countries cater to new clients, which has become Linux's growth point.

On the other hand, based on its open, strong expansibility and low cost, Linux gets more mobile terminal equipment manufacturers' approval. Internet giant Google, large mobile phone manufacturers, telecom carriers and industrial ISV are actively carrying out R&D of mobile phone Linux OS. Besides, ultra-portable computer manufacturers commonly adopt Linux OS. It is forecasted that Linux will get more harvest in mobile fields.

CCID Consulting forecasts that Linux manufacturers will pay more attention to channel, industrial customized solutions, virtualization and mobile Linux in the next three quarters. China's Linux software industry will acquire further development and more competition and cooperation. China's Linux development faces competitors' external pressure such as Microsoft in 2008. At the beginning of 2008, Microsoft launched Windows Server 2008, Visual Studio 2008 and SQL Server 2008, many partners' support and integrated platform solutions will bring predictable pressure to Linux. Linux manufacturers would not like to fall behind, which launches new strategies so as to win competitive advantage: Red Flag Software Co., Ltd. Launches Midinux 2.0 with Intel and seizes the opportunities in the mobile Linux field; China Standard Software Co., Ltd. unites Linux and Office, creates confidence and security philosophy, and actualizes centralization, platform war and service strategy; the cooperation between Novell and Microsoft further strengthens, which provides more interoperability to users in high performance calculating and virtualization. At the beginning of 2008, the president of Red Hat visited China, and established an R&D center in China to pay more attention to the government market and industrial applications. Turolinux has strengthened its cooperation with MySQL and is promoting the development of Linux.

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 affiliate to 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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