Strong Growth in the Server and Client Operating Environment Software License Shipments across Asia/Pacific excluding Japan

IDC: The recent IDC research study on the server and client operating environment software market in Asia/Pacific excluding Japan (APEJ) reveals that the total market reached US$1.86 billion in 2005. With the ongoing economic development across the region, IDC anticipates strong growth in total server and client operating environment software market to reach US$2.9 billion in 2010, which is equivalent to a 5-year CAGR of 9.38%.

The overall server and client operating environment software market is predicted to grow steadily for both license unit shipment and revenue. Foreseeable business expansion throughout the region will continue to trigger demand for computing hardware and underlying operating software; varied by the level of economic maturity and pace of development. In the server operating environment software market, the study confirms that users’ preference is gravitating toward x86, witnessed by impressive revenue growth of both Windows and Linux. Factors contributing to the growth of server operating environment software are increased IT investments from SMB segment, flexible licensing schemes to attract more legal purchases, and integration and consolidation trends among others.

With regards to client operating environment software, campaigns promoting low cost personal computers (PCs) and portable PCs (notebooks) have resulted in higher PC consumption in demographically large and fragmented lower income populations across this region. Major client operating environment software vendors have reacted with attractive price offerings. On the other hand, relevant agencies together with vendors have taken serious actions to lower piracy and license abuses by keeping a close watch and imposing heavy penalties if caught.

Asia Pacific (Excluding Japan) Server and Client Operating Environment Software, 2006 - 2010 Forecast Source: IDC, 2006

Overall growth in the next few years will come mainly from emerging markets, especially from the PRC and India, which are projected to reach US$1.03 billion and US$465.7 million in 2010, respectively. The study finds that most developing ASEAN countries will perform well over the next 5-year timeframe. Developed markets, namely Australia, Hong Kong, and Singapore, however will only account for marginal growth in the server and client operating environment software market.

Major growth factors driving the server operating environment software market, include positive macro economic indicators in most countries, consistently growing server penetration in SMB segment, product-upgrading cycle, and emerging technologies such as virtualization, and growing Linux server shipments. In the client operating environment software market, long-term government commitments to drive PC penetration rates, fast development in hardware and multimedia technologies, and upcoming release of new Windows Vista are expected to contribute significantly to the market growth over the forecast period.

server and client operating environment software market in Asia/Pacific excluding Japan Publ 20060717