Linux revenues to grow at 64% a year in China

According to IDC, Linux server operating environment (SOE) revenues are forecast to account for 6.1% of the entire SOE market in China in 2005. IDC forecasts Linux SOE revenue in China will reach $19.9 mln in 2005 and grow to $117.6 mln by 2009, displaying a robust five-year (2005-2009) compound annual growth rate (CAGR) of 64%. In China, government-led initiatives encouraging the adoption of open source software have spurred on intense competition between various factions of the community. According to IDC China, revenues for the locally-sold Linux SOE market in the first half of 2005 are estimated to approach $2.9 mln. The locally-sold market includes Linux SOEs acquired through local channels and OEMs as well as direct from Linux SOE vendors, but does not include Linux SOEs acquired through global OEMs.