According to IDC's recent ‘China Business Continuity and Data Recovery Solutions 2008: Opportunities and Challenges’ report (Doc Number: CN221108Q), the China disaster recovery solutions (software and service) market reached US$483.1 million in 2008, a 29.9% increase over 2007.

IDC's research shows that the China market has matured over the past few years following rapid growth, with disaster recovery solutions now gaining widespread adoption.

“Information technology has been deployed extensively in the government sector as well as the financial and telecommunication industries for data integration and business applications. The next step is therefore to provide for business continuity and the maintenance of information security in these organizations,” says Ting Yang, senior analyst of IDC's China Software and Service Research. Favourable government policies have also helped to drive developments in the disaster recovery solutions market in China. “The relevant national authorities have issued a number of directives and policies to safeguard information security, which has led to the establishment of disaster backup systems in the key industries,” adds Ting Yang.

The catastrophic events of the September 11 terrorist attacks, the tsunami in Southeast Asia, as well as the recent snow disaster in southern China and the Wenchuan Earthquake, have driven home the point that sudden threats to security and safety can happen anytime and enterprises have to be prepared at all times to ensure business continuity.

At present, disaster recovery solutions in China are mainly designed for specific industries such as the financial industry including banks, insurance companies and stock brokerages. Customers in this industry are the major contributors to the disaster recovery market revenue, taking up a market share of about 42.1 percent. With further enhancements and developments in risk control measures in the financial industry, coupled with growing compliance with industry standards, IDC expects the demand for disaster recovery solutions to increase rapidly, especially in industries such as telecommunications, governments, transportation, and energy.

IDC anticipates that the global economic situation will not impact China's business continuity and disaster recovery solutions market and the demand will remain relatively stable as these tools are critical for the normal operation of an enterprise's core businesses. IDC forecasts that the disaster recovery market will maintain a compound annual growth rate of 20.7 percent over 2008-2013.

For more information, contact: Karen Zhang kzhang@idc.com

•Date:10th February 2009• Region: SE Asia •Type: Article •Topic: BC markets
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