China Software Numbers: Suggestive If Accurate

January 28, 2020

DarkCyber spotted “China’s Leading Software Companies Report Rising Income.” The write up included some interesting, but difficult to verify, numbers:

  1. The companies in the sample generated US$118.5 billion of revenue from software business in 2018, 6.5 percent up from that of the top 100 companies a year ago.
  2. More than 30 companies saw revenue surging by more than 20 percent
  3. 14 of the companies in the sample had revenues above US$1.4 billion
  4. Aliyun, Alibaba’s cloud computing subsidiary, was number three on the list of 100 companies
  5. In the same period, these companies invested about US$25 billion in research and development, 12.6 percent higher than that of the top 100 companies in 2018.

And the killer number was, “Their average R&D intensity, the proportion of R&D expenditure to main business revenue, reached 10.1 percent, 2.2 percentage points higher than the average level of the software industry, the ministry’s data showed.”

Stephen E Arnold, January 28, 2020

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