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Chinese Government Procurement Pays Off For Security Software Firm

Chinese anti-virus software provider Rising signed a strategic cooperation agreement with General Administration of Quality Supervision, Inspection and Quarantine of China, to deploy an information security operating and maintenance management platform for the government agency.

Under this agreement, Rising's comprehensive anti-virus protection solution will become the exclusive internal network security product used by the administration.

Rising said this is the first time that the company's comprehensive solution is selected by a national ministry-level unit. This project will reportedly cover the General Administration and its 35 subordinate units across the country. The comprehensive solution provided by Rising will include the network edition of Rising's anti-virus software; Rising anti-virus firewall; and Rising's network security early warning system.

The cooperation is expected to bring monthly revenue of at least RMB10 million to the company.

Since its announcement of offering free-of-charge anti-virus service to personal users in 2011, Rising has shifted its business focus to the enterprise market. According to statistics provided by the company, the number of its enterprise users has reached about 150,000. At present, its operating revenue is mainly from three parts: software, hardware, and service. During the first quarter of 2012, Rising's revenue from hardware and service sectors exceeded that from software, accounting for over 50% of its total revenue.

News of Rising's success comes as U.S.-based AVG has prepared to depart the Chinese security software market. AVG apparently canceled hires for next year in China because the company is ending its on-the-ground commitment the the large market.



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