Business / Gadgets

A window of opportunity opens

By Gao Yuan (China Daily) Updated: 2014-05-22 06:53

China's government banned Microsoft Corp's Windows 8 from State purchases. The move will create more business opportunities to domestically created operating systems, analysts said on Wednesday.

"The push for local operating systems is a golden chance for Chinese software companies to gain ground, but it also challenges their product and technology levels," said Zhang Yumu, vice-president of the online security company Beijing Rising Information Technology Co Ltd.

Microsoft described the decision as "extremely unexpected" on Tuesday.

A window of opportunity opens

A window of opportunity opens
"We are working closely with relevant departments to evaluate Windows 8 for government purchase in the future," the company said in a statement.

Windows 8 had below a 3 percent market share in China as of April, according to Internet data company cnzz.com.

The website's statistics included operating systems' installation on smartphones and tablets. So the adoption rate of Windows 8 on personal computers is set to be significantly lower. PCs are the main government purchase.

"The ban will affect Microsoft's business with Chinese government organizations and agencies in the short term," said Nicole Peng, research director of Canalys China, a Shanghai-based consultancy. "Most of the commercial sectors are still adopting Windows 7, which information-technology managers are more familiar with. The impact on Microsoft's business in China may be limited, even if the ban on Windows 8 is not lifted in the short term."

Stocks of local software companies surged on Wednesday, with at least five shares jumping 10 percent. That's the upward limit for a single trading day on China mainland exchanges.

Analysts said Microsoft may find it difficult to sell Windows 8 to most Chinese customers because many computers are installed with pirated Windows systems.

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