Rainbow Technologies Sees Opportunity in China's Decision to Allow Microsoft Windows 2000

Strategic Insights -

Rainbow Technologies, a leading provider of security solutions for the Internet and eCommerce, welcomes the Chinese government's decision to allow Microsoft to market Windows 2000 software in China. This move positions Rainbow's joint venture, Rainbow-Goldensoft, to capitalize on the rapidly growing Chinese Internet market. With Windows 2000 expected to become the dominant desktop operating system in China, Rainbow is poised to benefit from its established presence in the country and its leading position in software security solutions. As the Chinese Internet market is expected to double annually and reach 50 million users by 2003, Rainbow is well-positioned to secure these new Windows 2000 desktops.

Key Takeaways:

  • Rainbow Technologies commends the Chinese government's decision to allow Microsoft to market Windows 2000 software in China, citing it as a major opportunity for the company to market its iKey authentication token in the world's fastest-growing Internet market.
  • The Chinese government's approval of Windows 2000 represents a significant shift in Western corporate fears about the Chinese government's stance on foreign encryption technology.
  • Rainbow's joint venture, Rainbow-Goldensoft, is well-positioned to capitalize on the rapidly growing Chinese Internet market with Windows 2000 expected to become the dominant desktop operating system in China.
  • The iKey 1000 authentication token provides powerful two-factor security to augment Windows 2000 software-based security.
  • Rainbow's CryptoSwift eCommerce accelerator will support Windows 2000 server environments later in Q2/00.
  • The Chinese government began requiring companies and individuals to register encryption products with the government in January to allow officials to monitor encrypted communications for national security or law enforcement.
  • The Chinese State Encryption Management Commission's decision to approve Windows 2000 eases Western corporate fears about the Chinese government's stance on foreign encryption technology.

Statistics:

  • More than 50 million Internet users are expected in China by 2003, with the number of users doubling annually (CNNIC, June 1999).
  • The Chinese Internet market is expected to grow rapidly, with Windows 2000 expected to become the dominant desktop operating system in China.
  • Rainbow Technologies has a headquarters in Irvine and maintains offices throughout the United States, United Kingdom, France, Germany, Australia, China, India, The Netherlands, Russia, and Taiwan.
  • A network of nearly 50 authorized distributors sell Rainbow products worldwide.

Sources:

  • CNNIC (China Internet Network Information Center), June 1999
  • Rainbow Technologies press release, Wednesday
  • Microsoft, February 17, 2000
  • State Encryption Management Commission