China's Linux industry considers mega-merger

InfoWorld ^ | August 25, 2005 | Sumner Lemon

[Golden Eagle]

A major reorganization is in the works for China's open-source software industry, with discussions under way over how local Linux vendors and industry organizations can cooperate more closely -- including the possibility of a merger between several of the country's top Linux companies.

If the discussions result in a merger, it would be one that involves some of the biggest names in China's Linux industry, including Turbolinux China Software, Red Flag Software, and Beijing Co-Create Open Source Software, according to executives involved with the discussions.

Closer cooperation among Chinese Linux vendors and industry organizations is essential if the country's software industry is to become a major contributor to international open-source efforts, said Lu Shouqun, president of the China Open Source Software Promotion Union. Lu also serves as the honorary chairman of Co-Create.

In June, Turbolinux China, Red Flag, Co-Create, and three other partners -- Sun Wah Linux, the Ministry of Information Industry's China Software and Integrated Circuit Promotion Center (CSIP), and Open Source Development Labs (OSDL) -- agreed to jointly develop Linux software. That agreement, which expanded an existing partnership between Turbolinux China and Co-Create, was the first step towards closer cooperation on development of the Linux operating system, including the possibility of a merger, Lu said.

The merger talks were inspired in part by the success of Chinese search engine Baidu.com's recent initial public offering on the Nasdaq stock exchange, one executive involved in the discussions said. A merged Chinese Linux company could easily be taken public as a "Chinese Red Hat," he said.

[Golden Eagle]

"China's Linux industry considers mega-merger"

Translation: China's communist goverment orders consolidation, says one free copy of Red Hat from the US is enough. Looks like they may quit calling it "Red Flag" though, and finally go ahead and steal the name "Red Hat" as well.

[Golden Eagle]

This is just fine with you guys, right? Why don't you ping your lists, or can I use the OSS one myself since it's "open sourced" on n3wbie's page?

[softwarecreator]

Why don't you ping your lists, or can I use the OSS one myself

Why not start a ping list for your articles?  N3wBI3's is for open source, maybe you could start one for non-OSS articles?

[softwarecreator]

According to figures released by IDC, revenue from Linux sales in China grew 20 percent between 2003 and 2004, from $7.8 million to $9.3 million, and is expected to continue growing at a compound annual growth rate of 24 percent through 2009, when revenue will top $27 million.

Or as Bill Gates puts it, pocket change.

I had no idea Linux had this small of a "for-sale" market share in China.

[N3WBI3]

Because if you're too dumb to realize that the sentence A merged Chinese Linux company could easily be taken public as a "Chinese Red Hat," he said.

Means a private company in the model or RedHat, not a private company named RedHat its not really worth it for the people on my ping list..

[Golden Eagle]

Not much if any money to be made in free software, which is why these communists love it. Novell announced last week their profits were down, again.

http://news.yahoo.com/news?tmpl=story&u=/nm/20050825/bs_nm/tech_novell_earns_dc_1

They'll soon be laying off thousands, just like IBM has been doing since they got into the Linux "business".

http://www.newsfactor.com/perl/story/34260.html?count=460

http://www.nysscpa.org/home/2002/802/2week/article35.htm

[Golden Eagle]

Means a private company in the model or RedHat

No it doesn't, because at least two of those that are being combined are already reselling their free copies of Red Hat in China. Not to mention there's no such thing as a "private company" in China. You're wrong, on all counts, again. Gonna ping them or not?

[N3WBI3]

RE: Novell,

Things work allot better when you read your own articles (just like your stat that Linux only has a 10% share on servers you missed *probably on purpose* something in this article:

Excluding restructuring charges and a one-time gain, Novell said it earned $14 million, or 3 cents per share, the same as an adjusted profit of $14 million, or 3 cents per share, from a year earlier, which excluded the impact of a $19 million gain from a legal settlement."

[N3WBI3]

Fine Ill bookmark this and when the merger actually happens we will see what the companies and distros name is. This was not put up as an informational article, it was put up for a flame war and I wont drag my list into it...

Can you tell me again about Linus's father?

[Golden Eagle]

Isn't your list "open sourced" on your webpage? Or you like the FSF, and don't really believe in giving things away, but only when they suit you and will try to sue me for using it?

[Golden Eagle]

I'm obviously not hiding anything, I constantly give verifiable links that backup my points. You on the other hand, spin around like a top before you fall off the table completely.

[N3WBI3]

Hey the list is out there fore reference, Use the people on it if you like but dont call it an oss ping. SWC is right just make your own antioss ping list..

[N3WBI3]

So youre ignoring "Excluding restructuring charges and a one-time gain, Novell said it earned $14 million, or 3 cents per share, the same as an adjusted profit of $14 million, or 3 cents per share, from a year earlier, which excluded the impact of a $19 million gain from a legal settlement."... or you just forgot to read your own link... again..

[Golden Eagle]

ROFL, not only is your English terrible, your math is even worse. Restructuring costs are costs, period. Their overall revenue fell, as did their profits. Their stock fell, and now they are facing layoffs. Deal with it.

[N3WBI3]

your math is even worse. Restructuring costs are costs, period. Their overall revenue fell, as did their profits. Their stock fell, and now they are facing layoffs. Deal with it.

Someone who obviously never took an accounting or business class..

[Golden Eagle]

Now, when his BS is exposed, he resorts to personal attacks. Just like always.

[N3WBI3]

I'm not insulting you, the statement "cost are cost period" would make most accounting departments fall over laughing, if you don't know that you never took a class...

[Golden Eagle]

Novell has been restructuring endlessly, they still can't make this Linux thing work, and will now have to layoff more employees. They just announced they are desperately going to give their new core product away for free, and their plan for the future is to make money off a clone of Microsoft .NET, which might not even be a legal implementation You can spin for them all you want, but they are obviously a company barely keeping its head above water, with no guarantees for the future except extreme competition from others.

If I were a linux fanatic like you, I'd place my bets on this new "Chinese Red Flag" bit financed by their government. They'll make sure it doesn't go under.

[N3WBI3]

I'm not insulting you, the statement "cost are cost period" would make most accounting departments fall over laughing, if you don't know that you never took a class...

You don't know jack about accounting or how to run a business... your statement "cost are cost, period" demonstrates this..

Novell never recovered from the bubble bursting, they had nothing left. Windows had effectively replaced netware everywhere on the planet. Novell did not buy Suse until November of 2003, lets look at the picture between 2000 and 2003, they went from 33$ a share to 5.87 a share and this is with no Linux in their mix whatsoever.

They are now trading at $6.38 a share and have been pretty stable at the level after the initial market hype surrounding their purchase of Suse pushed their stock way too high...

Heck look at their 3 month performance

Novell will not survive on Linux any more than they could have netware. It will come down to business decisions, they are doing better than they were before they bought Suse and with new like expectations to sell a quarter million copies of their desktop in Argentina its looking good for them.

I know you really, really want Novell to fail (so much for supporting American Business) but it does not look like thats whats going to happen...

[SolarisRocks]

Does it upset you that Microsoft has released the source for portions of .Net and C#?