According to a China based consulting firm CCID, the commercial Linux market saw 22.6 percent increase in sales over the past year.
As manufacturers broaden their distribution channels, Linux is expanding out of its traditional markets around major cities such as Beijing and Shanghai.
This is a good news because piracy is rampant in China and even though pirated copy of Windows is freely available, Linux sales has increased.
Although even with increased sales, the revenue generated in the first three months of 2008 is just $5.42m which is small considering how sales have improved.
According to CCID:
Servers are still the major application for the Linux market. The depth and width of application network servers, high performance computing servers and database servers keeps expanding. Linux has acquired more approval from government, finance, telecoms and post services.
The open source operating system is now seeing more uptake in second- and third-tier cities and in poorer regions such as western China, the report said.
Previously less PCs had Linux pre-installed on them but now more and more major PC manufacturers like Lenovo are coming with pre-installed version of Linux.
Smaller vendors are also taking this route to make cheaper PCs, as a Windows licence may add tens of dollars to the price.
CCID also said that it is seeing strong growth in the market for customised and mobile versions of Linux in China.
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