China's 2004 Linux Sales Grow 20 Pct Year-on-Year to 9.3 Mln USD - IDC

Linux sales in China last year expanded 20 pct year-on-year to 9.3 mln usd, International Data Corp (IDC) said in a report today. The market is expected to grow about 13 pct on a yearly basis to 11 mln in 2005, with an annual compound growth rate of 23.9 pct by 2009, IDC added. Major Linux players in China include locally-based Red Flag Software Co Ltd and Turbolinux Inc in Beijing, China Standard Software Co Ltd based in Shanghai, and US-based competitors Red Hat Inc (NASDAQ RHAT) and Novell Inc (NASDAQ NOVL), according to the IDC report. Red Flag said earlier that it expects 2005 sales to surge 50 pct from last year's four mln usd on hopes of strong sales of its Linux-based new product Asianux 2.0. Red Hat opened its first China office in Beijing last November as "part of an effort to tap demand for low-cost software in developing markets," the company said at the time. The firm is expecting its China operations to break even within 18 to 24 months, Red Hat chairman and president Matthew Szulik said at the launching ceremony, adding that it is working with Tsinghua and Nanjing Universities on development issues. "The intensifying competition will lead to further cooperation this year, including acquisitions and mergers," said Jiang Zhenpeng, an IDC analyst.

Source: Xinhua Financial Network (XFN) News

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