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CCID Consulting Reviews China’s Middleware Market

December 24, 2008
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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

SOURCE CCID Consulting Co., Ltd.


Source: newswire