This report from the Xingye Securities computer team aims to compare and analyze the alternative relationship and similarities between Unity Operating System (UOS) + WPS and Windows + MS Office by combing through the evolution of Windows, macOS, and ChromeOS operating systems, as well as MS Office and WPS.
Due to the differences in time, soft and hard product performance and competitive landscape, it is difficult to strictly compare UOS+WPS in a certain historical era.
But from the point of view of the development of a single product, WPS has a high probability of short-term replacement of MS Office in the domestic market, lightweight and subscription model is the product of the cloud computing era, but also to achieve beyond the conditions.
Rather than comparing UOS at this stage to the early days of Windows, which were more like ChromeOS or MacOS, the UOS + Huawei Kunpeng model is more like 10 years of ChromeOS, going from 0 to 1 and then gradually replacing parts of the market.
Currently, Chrome OS has a 5% market share across the U.S. and is rapidly cutting into the market from education.
Considering the orderly replacement of the Chinese government market and Huawei's help to open up the consumer market, UOS is expected to achieve a bend in the domestic overtaking, on the one hand, to make up for the lack of basic software systems, on the other hand, innovative to open up market segments.
The main contents of this paper are as follows.
1. Market pattern and development trends of operating systems
2. Microsoft Windows: The King of the World
3. Apple OS X: the hard-charging Genesis
4. Google ChromeOS: The breakout of the rising star
5. UOS: the rise of China-made OS
1. Market pattern and development trends of operating systems
The global desktop operating system market, Windows has long dominated.
As of 2019, Windows had a global market share of 77.81%, far higher than other operating systems.
In second place is Apple's OS X with a market share of 14.23%.
Linux and Chrome OS ranked third and fourth, respectively, with 1.68% and 1.21% of the market.
While the Windows advantage is clear, it's not hard to see that the competitive landscape of the operating system market is changing: over the past decade, Windows has seen its market share drop from 94.73% in 2009 to 77.81% in 2019, a 17.86% drop in market share.
As of February 2020, Windows' market share is still on a downward trend.
Its main competitor, Apple OS X, has been expanding its market size year after year, with a market share of 17.33%, squeezing out a portion of the Windows market.
(Global Desktop Operating System Market Changes, 2009-2019)
(February 2020 global desktop operating system distribution)
The U.S. market segment has changed even more dramatically, with Windows shrinking in size and OS X continuing to expand, while other operating systems such as Linux and Chrome OS are gaining ground.
Over the past decade, Windows' PC market share in the US has shrunk from 88.76% in 2009 to 69.42% in 2019, a 19.34% shrinkage in market size.
And with a 10.11% increase in market share over the decade, OS X is steadily becoming more competitive in the US market.
As of February 2020, Windows' market share in the U.S. continued to decline by 4.26 percent, with OS X's market share rising to 25.38 percent and other operating systems taking the remaining 9.46 percent share.
Among them, Chrome OS, an open source operating system based on Linux, has launched into the education field, aiming to build a Web-based cloud operating system.
With 5G landing, Chrome OS will take over more markets in the future and Windows is facing a new round of challenges.
(Changes in the U.S. Desktop Operating System Market, 2009-2019)
(US desktop operating system market, February 2020)
In the Chinese market, Windows is the absolute leader, with the market share of Windows dropping 11.78% from 2009-2019.
As of 2019, Windows holds 87.86% of the market share, with OS X in second place holding only 7.3%.
By February 2020, Windows' market share in China had declined slightly, with OS X rising to 8.28% and Linux only 0.93%.
Other desktop operating systems, with a 3.36% share, have high growth potential.
(Changes in China Desktop Operating System Market, 2009-2019)
(Chinese desktop operating system market, February 2020)
2. Microsoft Windows: The King of the World
Based on functional evolution, operating systems can be divided into early CP/M, DOS single-user single-task, Windows single-user multitask, and Unix/BSD/Linux multi-user multitask.
Microsoft's Windows family of desktop operating systems are representative of single-user, multi-tasking operating systems.
Since the release of MS-DOS by Microsoft, its operating system has quickly captured most of the global desktop market.
Started with MS-DOS and iterated for forty years.
From the first operating system, MS-DOS, to the current Windows 10, Microsoft has been working on the operating system for nearly 40 years.
In 1981, the first 16-bit MS-DOS system (Microsoft Disk Operating System) was released and became the most basic configuration of PC and compatible machines at that time. MS-DOS, on the other hand, is the most commonly used operating system for personal computers.
In 1985, Microsoft released Windows 1.0, which was Microsoft's first attempt at a graphical user interface for a PC operating platform, and in the decade or so that followed, Windows continued to upgrade and grow in market size.
In 1995, Windows 95 was introduced, marking the beginning of the full graphical interface era for personal computer operating systems, and five years later Windows XP began to rule the desktop operating system market for 11 years.
In 2009, Microsoft introduced Windows 7, which became the second classic operating system besides Windows XP.
Windows 10 came out in 2015 with the addition of Cortana Voice Search, a new Action Center, a new Edge browser, and a virtual desktop, making it the most configured desktop operating system ever in a personal PC.
Platformization, scale, standardization effect accumulation, helping Windows to rule the desktop operating system.
Microsoft started out as a partnership for IBM and Intel, and helped IBM build its DOS business empire, and later partnered with hardware vendor Intel to form the Wintel Alliance.
The operating system as a carrier to undertake hardware and application software, with typical platform and scale effect, since then Windows operating system and Intel processor has become the main driving force of personal PC, forming a desktop operating system monopoly position.
Correspondingly, it is the standardization brought about by the reverse of the scale effect, the technical specifications developed by the Wintel Alliance has become the de facto standard of the PC industry, making the monopoly of Windows in the desktop operating system position is difficult to shake.
Software and hardware together to build Windows eco-barrier.
In terms of software, Windows has become the mainstream and standard for PC machines by cultivating user habits and gaining user stickiness through Office and IE browser applications.
They then formed strong software barriers by enriching the software ecology, from Office base software to Azure's comprehensive cloud computing services.
Microsoft continues to solidify its monopoly in the hardware space by moving from the traditional PC to the more intelligent Surface tablet, IoT, Xbox and other hardware products.
At the same time, starting from the release of Windows 10, Microsoft has gradually moved to Windows 10 systems in desktop PCs, mobile platforms, game consoles and even smart wearables, creating an ecosystem with Windows 10 at its core.
The core product, MS Office, is one of Microsoft's core businesses, and its traditional sales model is mainly from the installed bring your own, retail, and enterprise customers.
Under the "operating system + software adaptation" model, Office has quickly cultivated a large number of loyal users, and since its birth has been on the road to office software soaring.
In 2011, Microsoft launched MS Office 365, a subscription service based on a cloud platform.
The business integrated Office software One Drive storage capabilities to meet the needs of co-working, and continued to grow in user numbers and revenue, taking the first step towards Office cloudization.
In 2014, based on the strategy of "mobile first, cloud first", Office business completed the vertical transformation from stand-alone office, user interconnection, to cloud information sharing.
It has also completed the horizontal layout from personal hardware terminal, operating system development and software design such as office software, to big data cloud platform storage, driving the overall migration of traditional Office users to the Office 365 platform, the total number of subscribers to Office 365 has grown year by year, to more than 34.8 million in 2019.
3. Apple OS X: The Catcher
OS X Product Mapping Evolutionary Path.
OS X, the operating system running on Apple's Macintosh family of computers, was the first GUI operating system to be successful in the commercial space and has long been used by the industry to compare itself to Microsoft's Windows.
In terms of the underlying architecture, Apple OS X is a continuation of Unix's design thinking and research, directly inheriting many of BSD's design concepts.
The evolution of OS X can be divided into three phases: System to OS X 8 and the successor OS X GUI, System is the older and no longer supported version of the classic Mac OS, known as the "System x.xx" series.
The OS X 8 series started a period of rapid growth for Apple's desktop operating system, after which OS X Apple entered the post-OS era.
In 1984, Apple released the first Mac personal computer along with the first-generation operating system, System 1.0, which first used a graphical interface and user interaction design.
System upgrades didn't change much for the next seven years until the seventh generation system was introduced in 1991, with System 7.0 being the first Apple system to support color display.
In 1997, OS X 8.0 was released and the OS X name was officially adopted, bringing users the Multi-thread Finder, a 3D Platinum interface, and a new computer help system.
In 1998, Apple CEO Steve Jobs announced the OS route for OS X and decided to release system updates every six months, with the OS X 9 series being the last OS X series in this system route.
In 2001, the fifth year of his return to Apple, Jobs released OS X 10.0, a system based on the Darwin system, which inherited the Next Step technology from NeXT, the company Jobs founded when he left Apple, opening a new chapter in Apple's operating system.
Over the next 20 years, Apple upgraded from the OS X 10.0 Cheetah system in 2001 to the latest OS X 10.15 Catalina system in 2019, with dramatic changes in system processors, interfaces and features, and increasing market share.
Together, the desktop and mobile ends make up Apple's mobile product atlas.
The Mac, iPhone, iPad, iWatch, and iPod families and services make up Apple's mobile ecosystem.
The Mac is based on the OS X desktop operating system, while the iPhone, iPad, iWatch, and iPod are based on the iOS mobile operating system.
iOS is a derivative of OS X on the mobile platform, bringing the idea of a desktop system to mobile phones.
With the introduction of the iTunes music platform software in 2003, Apple rapidly expanded the market for iPod hardware products with the "iPod+iTunes" model, integrating the player, copyright protection technology, and the iTunes Music Store, opening Apple's path from electronics manufacturer to end-user content provider.
In 2007, Apple launched the App Store online application store after the release of the iPhone, forming a new "iPhone + App Store" combination.
Both iTunes and the App Store are bundled under Apple's iTunes sync management software, and Apple is leading the wave of the mobile phone revolution.
In 2009, Apple launched the iCloud cloud service, which provides a private cloud space for Apple users, supporting the synchronization and pushing of data between user devices over the air, closely integrating Apple's hardware and software products.
In 2010, Apple launched the iPad tablet, which became the "Terminal App Store" portfolio.
In 2014, Apple launched the iWatch to enter the smartwatch space, and Apple's mobile product mapping is now complete.
Closed hardware + semi-open software to create an integrated ecosystem of Apple hardware and software.
Apple integrates the strengths of software, hardware and operating system to create a stable integrated ecosystem of hardware and software.
To reduce system burden and improve security, Apple has adopted a closed strategic architecture for its operating system, allowing developers to access only those features that Apple considers "secure" or "recommended.
Apple is completely closed at the hardware level and has absolute control over the hardware vendors using its operating system.
Apple is semi-open at the software level, strictly vetting all software developers, through closed hardware + OS, control of sales channels, so that many applications will have to be downloaded or in-app payment when they are added to the App Store.
This establishes a complete payment model for purchases, ensures the high quality of free or paid software in the App Store, and fosters good user word of mouth and payment habits.
4. Google ChromeOS: a rising star
From a single form to multiple forms, the Chrome industry chain continues to improve.
In 2010, Google introduced Chrome OS, Google's PC operating system for netbooks, a lightweight, open-source operating system running on the Linux kernel with the Chrome browser at its core.
Chrome was released in 2008, and Google took the exact opposite of Microsoft's open approach, open-sourcing the Chrome project from the start, and within nine months of its release it attracted over 30 million users to browse the web using Chrome, and the Chrome OS system was born.
Continuing Chrome's fast, simple, and secure nature, Chrome OS emphasizes cloud computing capabilities, storing users' applications, files, and settings on a cloud server, reducing the computing and storage burden on the laptop itself, and aiming to create the fastest and leanest operating system.
In 2011, Google launched Chromebook, a laptop based on Chrome OS, as the "future of lightweight portable computing", and Chrome OS went from a single form to multiple forms.
In 2016, Android programs began to merge into Chromebooks and other Chrome OS hardware, a landmark optimization for Chrome OS.
In 2018, Chrome OS introduces ability to run Linux apps, Chrome ecosystem gets better
(c) Creating an educational ecosystem that cuts into the mainstream market.
According to Futuresource, Chromebooks have maintained their dominant position and market share in the K12 education market year on year, growing their global share in this market to 35% in 2018; with the US market being the largest Chromebook market in the world.
Popular with educators for Chrome OS' lightweight and fast features and Chromebooks' price advantage, teachers can lock student Chromebooks with remote control, making instructional management easy.
The web-based application design also saves a lot of time waiting for the installed software to load and open, while Google also launched Google Classroom classroom management application, Google Plus video group chat and Google Docs and other supporting software services to meet daily teaching needs.
In addition, Chromebooks are priced in the $200-$400 range, and Google doesn't directly profit from Chromebook hardware sales, instead charging schools a $30 per device registration fee, a significant price advantage.
Google's Chromebooks with Chrome OS quickly took over the education market, laying the foundation for the mainstream market to enter.
License Android for free and launch OS+App channel. In order to make Chrome OS the right operating system for everyone.
Google started the initial integration of Chrome OS and Android in 2018 by opening up its hardware and software completely, providing access to Android folders for Linux apps, and Chrome OS devices can run Chrome apps, Android apps from the Google Play store and Linux apps.
According to Google's internal data, within a year of licensing Android, as of March 2019, the amount of time users spent using Android apps in Chrome OS increased fourfold year-over-year, resulting in significant results in building a refined Chrome OS experience for Android apps.
In May 2019, based on Android Runtime for Chrome (the way Android apps run), Google began developing a new generation of ARCs - "ARC++" - aimed at deeper integration of Android Runtime with Chrome OS, aiming to further break into the ecosystem of Chrome OS and Android.
5. UOS: The rise of China-made OS
In January 2020, China-made UOS V20 is released.
UOS is an operating system based on the Linux kernel and is divided into UOS desktop version and UOS server version.
UOS desktop version is based on desktop application scenario, UOS server version is based on server-supported service scenario, supporting laptops, desktops, MFPs, workstations and servers on Loongson, Feiteng, Zhaoxin, Hygon, Kunpeng and other chip platforms.
In terms of chips, UOS supports laptops, desktops, all-in-one PCs, workstations and servers on Kunpeng, Hygon, Loongson, Feiteng, Zhaoxin and other chip platforms.
In terms of hardware, it is compatible with more than 40 models of terminals and servers released by Lenovo, Huawei, Tsinghua Tongfang, Great Wall, Shuguang and other manufacturers.
In terms of software, it can be compatible with the office applications released by streaming, layout, electronic signature manufacturers, there are 28 native applications, as well as a unified software marketplace, self-researched DDE desktop, support three native applications such as WPS, Sogou input method, NetEase cloud music, etc.
In terms of peripherals, it is compatible with mainstream printers, scanners, Raid cards, etc.
In addition, nearly a thousand applications can be supported through the pre-installed App Store and the software repository on the Internet, which can be used to meet the expansion needs of the operating system.
UOS has entered a high growth phase against Windows 7.
On the one hand, going back to the history of Windows, Windows 7 is the second classic system after a decade of Windows XP domination, following the NT architecture of Windows Vista.
It is designed around five key points: unique design for laptops, application service based design, user personalization, audio-visual entertainment optimization, and a new engine for user ease of use.
And Windows 10 adds biometrics, Cortana search, multiple desktops, and more, and introduces AI to enhance smoothness in the device's update process.
UOS is based on the Linux kernel and supports PCs and tablets. The system has built-in cinema, mapping, music and screenshot services developed in China.
Its interface design and underlying software ecology are in line with Windows 7 functional features, but it is still some way from Windows 10.
On the other hand, in May 2014, the Chinese government procurement network issued the "Notice of Supplementary Tender for the Supply of Compulsory Energy-saving Products for Information Type Agreements", requiring all computer equipment of government agencies are not allowed to install Windows 8 operating system, the vast majority of the operating system of government agencies stay in the Windows 7 phase.
In January 2020, Microsoft officially ceased to support Windows 7, prompting the Chinese operating system market to seek an alternative to China-made products, UOS was born.
Expand the ecology and accelerate the migration of the Windows architecture to UOS.
The core problem of UOS at this stage is not commonly used through Java and other cross-platform software, but based on ie, .net and other Microsoft-specific architecture development of the ecology, there are still some bottlenecks and difficulties in porting.
UOS can only further develop in the consumer market if it promotes the construction of ecological content for software and hardware adaptation, and fully satisfies the needs of users in the daily application software and game ecology.
At present, UOS is still difficult to reach the platform and scale of Windows, not to mention the development of standardized technical specifications, in a short period of time is not yet able to break through the strong barriers of the Windows operating system.
China-made WPS Office Adaptation accelerates UOS landing promotion.
As opposed to "Windows + MS Office" desktop office mode, "UOS + WPS Office" comes with a new China-made desktop office mode.
Jinshan Office's WPS Office Suite is the leading China-made office software against MS Office.
WPS Office is divided into a desktop version and a mobile version, of which the desktop version is divided into a personal version (adapted to Windows, Linux, OS X systems), desktop professional version (adapted to Windows, Linux, China-made operating systems).
Combined with new technologies such as cloud computing, WPS Office offers a wide range of services to customers, including personal value-added services based on WPS cloud documents, WPS cloud services and enterprise value-added services.
Enterprise value-added services can upgrade online functions to collaborative functions, add cloud management services, and manage the organization, permissions, document security, and other aspects of the enterprise.
WPS develops software for Linux systems, adapting to a range of China-made chips and China-made operating systems.
At the same time, WPS Linux version can be compatible with the Windows version, greatly reducing the resistance of users to the platform information migration, and its dedicated security features will also ensure further promotion of office software for the future.
In addition, WPS product iteration speed can guarantee the core competitiveness of China-made office software, as well as follow the pace of UOS upgrade iteration.
Since 2013, the WPS Windows and Linux versions have been upgraded every 2-3 years on average to meet the new office needs of our customers.
The company's early mechanism of "product-driven R&D and product service to customers" has been gradually replaced by the mechanism of "customer-driven R&D and customer-oriented".
Since 2015, the company has been transforming its cloud strategy, launching subscription services for individual users and continuously iterating the company's product (service) capabilities.
The independent development of network security continues to advance, and UOS breaks down the system barrier one by one. According to the current user groups, the operating system can be divided into three categories: government departments (ToG), centralized enterprises (ToB) and the civil market (ToC), in which government departments are divided into the government market and the institutional market.
With the strong support of the policy, UOS is expected to be the first to land from the government sector, and then extend to the centralized state-owned enterprises market, after gaining a certain degree of market acceptance to the civilian consumer market.
The opening of the China-made alternative market requires time and capital investment, and UOS has a long way to go.
China-made operating system market size forecast: the total market space for the government market and institutions is estimated to be 6.15 billion yuan; the market space for centralized SOEs is estimated to be 11.5 billion yuan; the market space for the civilian market is estimated to be 7 billion yuan.