International database providers lose ground in China • The Register

Beijing’s efforts to develop local alternatives to products from the world’s biggest tech companies have made headway in the relational database market, according to research by analyst firm International Data Corp (IDC).

Under what IDC referred as “friendly policies”, the relational database market share of local Chinese manufacturers is rapidly catching up with Oracle and IBM. Local players such as Dameng Database, Renmin University Golden Warehouse and Huawei are snapping up customers.

In the public cloud, the operators’ own databases dominate. Alibaba Cloud captured the lion’s share of the market in the second half of 2021, followed by Tencent, AWS and Huawei. For on-premises deployment, Huawei is the winner with nearly a quarter of the market, followed by Oracle.

China’s relational database software market, which grew 34.9% year-on-year to nearly $1.6 billion in the second half of 2021, is expected to continue growing to nearly $9.6 billion. by 2026, reflecting a five-year CAGR of 28.1%.

Within this market in the second half of 2021, public cloud relational databases accounted for $870 million in revenue, growing 48.7% year-on-year, while on-premises solutions grew by less than half, to 21.1%, to reach $710 million.

IDC credits new technologies, such as cloud computing and big data, as well as deepening enterprise digital transformation, for creating more complex data management requirements. These in turn require databases suitable for different roles. This demand creates opportunities for more players and diversified products.

Wang Nan, China enterprise software market analyst at IDC, said these emerging database markets are where local manufacturers are gaining the most traction – some are even leading the market – as they offer better prices or other benefits.

According to Wang, politics is another factor driving the adoption of local databases. “At the macro level, the policy is greatly beneficial to local manufacturers, and the market opportunities of local manufacturers will be higher than those of international manufacturers. Under the double factor of the development of database technology and macroeconomic policy , the past pattern of China’s relational database market is broken and changes are coming,” Wan said.

IDC’s data will please Beijing. In October 2020, China set a goal to be self-sufficient in technology by 2035. A national strategic plan and the slogan “Made in China 2025” aim to increase the Chinese content of basic materials to 40 % by 2020 and 70% by 2025. .

Progress on this hardware has been slow, with IC news predicting that China will only produce one in five of the chips it uses in 2026.

But China has recently stepped up efforts to set up a local office. In May, authorities reportedly ordered government agencies and state-owned companies to discard all foreign-made personal computers. Along with the story came an immediate boost for Chinese company Lenovo – which Canalys said already claimed 40% of the Chinese market.

China has also repeatedly attempted to end its reliance on Western software and operating systems, including Microsoft Windows. Last week, this effort saw a new alliance form to develop a desktop operating system called OpenKylin which it is hoped will offer a better alternative and faster development than the Linux-based Kylin operating system. of today.

IDC data suggests that the unglamorous but utterly essential RDBMS market could represent a niche in which Beijing has already made good progress towards its self-sufficiency goals. And perhaps also a model that the country can use to do the same in other areas. ®

Maria H. Underwood