China SME tech purchases surging

Oct 03, 2005

A report by a government-run technology consultancy says IT spending by small and medium enterprises in China will top $28 billion dollars in five years.

Xinhua quoted the China Center of Information Industry Development (CCID) as saying spending by SMEs has become the main sector driving IT spending in the country. The sector has outspent the large-enterprise sector for the last three years, according to the CCID report

Industry analysts note software sales have lagged behind hardware purchases in the China tech market; however, the CCID report notes a surge in SME software purchases and "big progress" in the application of information technologies, shifting from financial to solution software.

According to CCID, software sales reached 17.16 billion yuan (more than $2.14 billion dollars) in 2004 accounting for 15.8 percent of the overall IT investment by the sector last year. This was a 2.2-point rise over 2003.

The Beijing-based firm said the 2006-2009 timeframe will be a crucial period for SME market maturity. CCID Consulting predicts the Chinese SME market will grow at an average annual rate of 18 percent in the next three years, on the basis of a 100 billion yuan market scale in 2004.

The CCID is a quasi-private consulting company that belongs to the Ministry of Information Industry. It operates in four major areas: IT, Media, Consulting and Training.

It targets government organizations, enterprises and vertical industry communities offering information services that include planning, policy studies, market surveys, software testing and localization.

Copyright 2005 by United Press International

Explore further: Robot scouts rooms people can't enter

add to favorites email to friend print save as pdf

Related Stories

China's Baidu buys mobile app firm for $1.9 bn

Jul 16, 2013

China's leading web search engine Baidu is to buy a smartphone app distribution firm for $1.9 billion, it said Tuesday, in what is believed to be the largest takeover in the country's Internet industry.

Huawei's global ambitions come under a cloud (Update)

Oct 09, 2012

Chinese telecom firm Huawei's ambitions to become a global brand rivalling Apple and Samsung have been hit by a US report claiming that the company, founded by a former Chinese soldier, posed an espionage ...

Recommended for you

FCC to propose pay-for-priority Internet standards

2 hours ago

The Federal Communications Commission is set to propose new open Internet rules that would allow content companies to pay for faster delivery over the so-called "last mile" connection to people's homes.

SK Hynix posts Q1 surge in net profit

2 hours ago

South Korea's SK Hynix Inc said Thursday its first-quarter net profit surged nearly 350 percent from the previous year on a spike in sales of PC memory chips.

Brazil enacts Internet 'Bill of Rights'

2 hours ago

Brazil's president signed into law on Wednesday a "Bill of Rights" for the digital age that aims to protect online privacy and promote the Internet as a public utility by barring telecommunications companies ...

Zynga founder Pincus leaving operations role

13 hours ago

Online game maker Zynga says company founder Mark Pincus is stepping down as chief product officer, less than a year after he was replaced as the company's CEO.

User comments : 0

More news stories

SK Hynix posts Q1 surge in net profit

South Korea's SK Hynix Inc said Thursday its first-quarter net profit surged nearly 350 percent from the previous year on a spike in sales of PC memory chips.

FCC to propose pay-for-priority Internet standards

The Federal Communications Commission is set to propose new open Internet rules that would allow content companies to pay for faster delivery over the so-called "last mile" connection to people's homes.

Brazil enacts Internet 'Bill of Rights'

Brazil's president signed into law on Wednesday a "Bill of Rights" for the digital age that aims to protect online privacy and promote the Internet as a public utility by barring telecommunications companies ...

Phase transiting to a new quantum universe

(Phys.org) —Recent insight and discovery of a new class of quantum transition opens the way for a whole new subfield of materials physics and quantum technologies.

Imaging turns a corner

(Phys.org) —Scientists have developed a new microscope which enables a dramatically improved view of biological cells.

Fresh hope for preventing pneumonia in the elderly

There are calls for the frail and elderly not be be overlooked for vaccines against pneumonia this winter, with UNSW research challenging conventional wisdom on immunisation effectiveness in older patients.