Text | Chinese Business Strategies by Wu Su

In the Chinese food arena, Wang Shouyi’s thirteen incense and Lao Ganma are household names, and countless people have used them since childhood, and they can be called “national grandpa” and “national grandma” brands.

Both were once beautiful.

As early as 1998, the annual income of Wang Shouyi’s thirteen incense reached 400 million yuan, relying on “composite seasonings” to build a huge condiment business empire.

Laoganma is even more synonymous with hot sauce. There is no marketing, no financing, no loans, no listing, only with unique taste and low price, the market coverage rate in all parts of the country is as high as 90%, and even exported to foreign countries. Wherever there is, there is an old godmother.”

In 2019, Laoganma’s annual sales exceeded 5 billion yuan, a year-on-year increase of 14.43%, a record high.

It seems that these two national brands still have a huge consumer market, but in fact, due to domestic and foreign difficulties, their sense of existence is getting weaker and weaker.

First of all, the younger generations feel that it is too slow to make money from selling spices and hot sauces, and they can’t sit on the “cold bench”, trying to make quick money from the real estate market, but they are all killed.

Wang Taibai, the grandson of Wang Shouyi, who held tens of millions in cash at the age of 20, was the “successor” that the second-generation leader once deliberately cultivated. He hoarded dozens of properties in the UK, but he did not expect to encounter the financial crisis and almost lost everything. Property, only relying on the family to “assistance” can get through the difficulties.

Similarly, Lao Ganma Tao Huabi’s eldest son Li Guishan Nuggets Real Estate, also touched his nose.

The real estate company of which Li Guishan is the second shareholder develops a real estate, but it has been unable to accept it due to construction problems, project balance problems, etc., and is involved in a lawsuit. In addition, this company suffered serious losses. From 2013 to 2017, it had a total debt of 950 million yuan. It frequently appeared on the list of untrustworthy executors and was involved in nearly a hundred judicial cases.

In addition to the huge resource loss caused by cross-border, the hunting of copycat products has also reduced the influence of Wang Shouyi Shisanxiang and Lao Ganma.

In the field of compound seasonings, the “fifteen incense” and “eighteen incense” have sprung up like bamboo shoots after the rain, and they have fought guerrilla warfare with the “genuine products”. To this day, in some cities, these “li ghosts” sell more than the “genuine products” it is good.

Lao Gan Ma was also troubled by copycats and had to apply for registration of trademarks such as “Lao Gan Da”, “Lao Gan Da”, “Lao Qian Ma” and “Lao Shi Ma”.

Outside of the cottage, the “encirclement and suppression” of competitors made it even more difficult for them to resist.

Totole, Yihai International, which provides the base material for Haidilao, and Zhongjing Food, which uses mushroom sauce to beat the world, are all accelerating their attack on the city. Wang Shouyi’s thirteen incense is particularly silent.

Lao Gan Ma was chased by Lee Kum Kee and Spice Girls, and online marketing was relatively weak. At the beginning of the year, the media compared the hot sauce data with the highest monthly sales in each brand’s flagship store. The hot sauce brand “Fan Ye” founded by singer Lin Yilun had five times more than Lao Ganma.

Unfavorable factors are superimposed, Wang Shouyi Shisanxiang and Lao Ganma no longer have the style of the former leaders, but this also forces them to think about changes, and new growth points may be bred in them.

——END——

Welcome to pay attention to 【Chinese Business Strategies】, learn about the heroes, and read the legends of the strategies.

All rights reserved, unauthorized reprinting is prohibited!

Some pictures come from the Internet

If it involves infringement, please contact to delete

Text | Chinese Business Strategies by Wu Su

In the Chinese food arena, Wang Shouyi’s thirteen incense and Lao Ganma are household names, and countless people have used them since childhood, and they can be called “national grandpa” and “national grandma” brands.

Both were once beautiful.

As early as 1998, the annual income of Wang Shouyi’s thirteen incense reached 400 million yuan, relying on “composite seasonings” to build a huge condiment business empire.

Laoganma is even more synonymous with hot sauce. There is no marketing, no financing, no loans, no listing, and only with unique taste and low price, the market coverage rate in all parts of the country is as high as 90%, and even exported to foreign countries. Wherever there is, there is an old godmother.”

In 2019, Laoganma’s annual sales exceeded 5 billion yuan, a year-on-year increase of 14.43%, a record high.

It seems that these two national brands still have a huge consumer market, but in fact, due to domestic and foreign difficulties, their sense of existence is getting weaker and weaker.

First of all, the younger generations feel that it is too slow to make money from selling spices and hot sauces, and they can’t sit on the “cold bench”, trying to make quick money from the real estate market, but they are all killed.

Wang Taibai, the grandson of Wang Shouyi, who held tens of millions in cash at the age of 20, was the “successor” that the second-generation leader once deliberately cultivated. He hoarded dozens of properties in the UK. He did not expect to encounter the financial crisis and almost lost all of them. Property, only relying on the family to “assistance” can get through the difficulties.

Similarly, Lao Ganma Tao Huabi’s eldest son Li Guishan Nuggets Real Estate, also touched his nose.

The real estate company of which Li Guishan is the second shareholder develops a real estate, but it has been unable to accept it due to construction problems, project balance problems, etc., and is involved in a lawsuit. In addition, this company suffered serious losses. From 2013 to 2017, it had a total debt of 950 million yuan. It frequently appeared on the list of untrustworthy executors and was involved in nearly a hundred judicial cases.

In addition to the huge resource loss caused by cross-border, the hunting of copycat products has also reduced the influence of Wang Shouyi Shisanxiang and Lao Ganma.

In the field of compound seasonings, the “fifteen incense” and “eighteen incense” have sprung up like bamboo shoots after the rain, and they have fought guerrilla warfare with the “genuine products”. To this day, in some cities, these “li ghosts” sell more than the “genuine products” it is good.

Lao Gan Ma was also troubled by copycats and had to apply for registration of trademarks such as “Lao Gan Da”, “Lao Gan Da”, “Lao Qian Ma” and “Lao Shi Ma”.

Outside of the cottage, the “encirclement and suppression” of competitors made it even more difficult for them to resist.

Totole, Yihai International, which provides the base material for Haidilao, and Zhongjing Food, which uses mushroom sauce to beat the world, are all accelerating their attack on the city. Wang Shouyi’s thirteen incense is particularly silent.

Lao Gan Ma was chased by Lee Kum Kee and Spice Girls, and online marketing was relatively weak. At the beginning of the year, the media compared the hot sauce data with the highest monthly sales in each brand’s flagship store. The hot sauce brand “Fan Ye” founded by singer Lin Yilun had five times more than Lao Ganma.

Unfavorable factors are superimposed, Wang Shouyi Shisanxiang and Lao Ganma no longer have the style of the former leaders, but this also forces them to think about changes, and new growth points may be bred in them.

——END——

Welcome to pay attention to 【Chinese Business Strategies】, learn about the heroes, and read the legends of the strategies.

All rights reserved, unauthorized reprinting is prohibited!

Some pictures come from the Internet

If it involves infringement, please contact to delete

Opened as far back as 1958, Hoa Ma Bread is one of the oldest bakeries in Saigon. Initially, the bakery was located at 511 Phan Dinh Phung (now Nguyen Dinh Chieu, District 3) with a small cabinet. But only 2 years later, Hoa Ma bread moved to Cao Thang Street, District 3 and has remained until now. The name Hoa Ma bread is no stranger to Saigon people, along with the pan bread that has created the name of this restaurant. You may not know, but the owner is a Northern couple who migrated to the South. The name Hoa Ma is also taken from the name of a village on the outskirts of Hanoi. Over 60 years of development, Hoa Ma bread is always one of the top delicious dishes in Saigon that you must definitely enjoy. Although it is a very ordinary dish, but thanks to the unique way of processing, it has a special taste, so the restaurant makes many diners fascinated. Not only attracting the people of Saigon to eat, there are many foreign tourists who also want to try this long-standing pan bread. Currently, Hoa Ma shop has been maintained by 3 generations in the family. The price of a piece of pan bread is 52,000 VND, while the ready-to-go sandwich is 34,000 VND. The menu of Hoa Ma bakery is simple and unchanged. The shop serves 2 “all-in-one omelets” with pan-fried ingredients and “burgers” filled with cold meats. Drinks are equally simple, only iced coffee, milk coffee and mineral water, tea… Like a beautiful color painting, Hoa Ma pan bread has a striking combination of golden egg yolk and the eye-catching burnt red-brown color of slices of meat, sausage… Besides, bread is also a factor that makes diners fall in love. Crispy bread, thick inside, fragrant. When eating, dip it with egg yolk to make sure no one can resist. In addition, each meal also comes with extra pickles to serve without being fed up at all! Hoa Ma Bread is open from 6 to 11 hours daily. But a lot of days, the shop closes early because the diners are always crowded, so you may have to go home hungry if you come late. (According to GiadinhNet)

Besides, SkyTube also supports a lot of useful features that the official YouTube app does not support, including the ability to block malicious channels, block ads (in and out of videos), allow users to download videos for offline playback, play videos in the background (when the screen is off)… SkyTube is currently available for free at https://skytube-app.com/ or you can install the app through the F-Droid app store. SkyTube’s interface is quite simple. Photo: MINH HOANG SkyTube’s interface is quite simple, the application will display videos by category, such as Featured (featured), Trending (trending), Bookmarks (marked videos) or downloaded videos. To search for a video, you can click on the magnifying glass icon, then enter the corresponding keyword or paste the video’s URL (link) directly. Next to it is the option to block malicious channels (the shield icon). When opening any video, you can use gestures to control. For example, swipe from the right edge to the left to open the comment section, swipe up from the bottom to open the description, slide up and down on the screen to increase or decrease the brightness, volume, etc. SkyTube supports ad blocking in videos. Photo: MINH HOANG Overall, SkyTube is quite a useful application, equipped with many unique features, worthy of being an alternative to the official YouTube application. Note, if you have enough money, users should buy YouTube Premium to not be bothered by ads on YouTube.

When they love each other, even though they live in two places, they always have fun conversations about what they want to do in the future. Especially both love nature, want to do something on the countryside land. The couple came together from a love of gardening. “I started to get inspired about gardening, growing plants, producing food after going to the farmers market in the city every week,” Lauren shared. She then learned about the benefits of growing her own plants, cooking broths from fresh produce, and baking. After marrying Tyler, the two together continued to study nutrition and transmit useful gardening information to many people. Returning to the town is not as vibrant as in the city, the couple feels like they are enjoying the life that is exactly what they both wanted for a long time. Tyler shared that the two chose to live on the east coast of Australia, with more than 4 hectares of land for farming. In addition to planting trees, the couple is also interested in improving the natural ecosystem, avoiding harm or killing beneficial insects. One of the natural ways to prevent plant pests is to keep ducks and chickens around the garden. In addition, they also raise a few sheep. The couple said: “We live in the tropics so high temperatures, strong winds, drought, some other natural disasters are challenges with gardening. But we believe that whatever you plant, If you put your heart and effort into nurturing them, they will pay off, so happy to see them grow day by day.” Lauren and Tyler not only grow crops to provide food for their families, but also store seeds to share with many people, inspiring those who love to create clean food for their families with their own hands and aim for a better life. sustainable living. “We’re not inheriting land from our ancestors, we’re borrowing land from future generations,” says Lauren. “This reminds us not to focus entirely on immediate needs, but instead take responsibility. responsibility, a sense of how current actions will affect the world our children live in. I hope everyone has positive thoughts and intentional actions to live a life of purpose and connection with together”. Hoang Dung ( translation summary)

The story begins with Apu’s grandfather. At that time, the problem of not having a fingerprint was not considered a serious matter. Until now, the disease was considered a condition that could only be found in a few families worldwide. Speaking to the BBC, Apu said: “At that time, my family and I did not think the problem of not having fingerprints would be inherited and affect future generations.” For decades, fingerprints have been considered the most collected biometric data in the world. Fingerprints are used in many fields, from airport check-in to voting, smartphone opening and Identity verification. No fingerprints: it doesn’t seem to affect the body, but it leads to many inadequacies In 2008, when Apu was a child, the Bangladeshi government adopted a national identification card for all adults and the database required fingerprints. Since there were no fingerprints, the staff stamped the line. “NO FINGERPRINT” (NO FINGER) on Apu’s card. Apu’s fingertips have no fingerprints. Photo: BBC In 2010, fingerprints were required for passports and driver’s licenses in India. After several attempts, Apu was able to obtain a passport by presenting a certificate from the medical board. However, Apu never used it, partly out of fear of problems he might run into at the airport. Moreover, motorbike is a necessary means of transportation to work, Apu has not yet been granted a driver’s license. “I paid the fee, passed the exam but they didn’t give me the degree because I couldn’t provide my fingerprints,” Apu said. Because of the problem of not having a driver’s license, Apu often had to pay fines when the traffic police checked the papers. Despite bringing medical documents to prove her condition, Apu still did not receive sympathy and had to pay a fine. However, the trouble did not stop there. In 2016, the Indian government required fingerprint authentication against the national database to purchase sim cards for mobile phones. And of course, Apu can’t match because it doesn’t have a fingerprint. Currently, Apu and other men in the family are using Apu’s mother’s phone sim. Anu Sarker, Apu’s younger brother, also had a problem with no fingerprints. Photo: BBC Findings from research on this extremely rare condition A rare condition that affects the Apu family is called Adermatoglyphia. This condition first became known in 2007 when Peter Itin, a Swiss dermatologist, was contacted by a woman in the country who informed her that she was having difficulty entering the US. The girl was 20 years old at the time, her face matched the photo on her passport but customs officers could not take her fingerprints because she did not have one. On examination, Professor Itin discovered that the girl and eight other members of her family had the same strange condition – flat fingers and decreased number of sweat glands in the hands. Working with other collaborators Professor Itin examined the DNA of 16 family members. The results show that 7 people have fingerprints and 9 people do not. The condition is isolated and rare, reported in only a few families worldwide, Professor Itin said. In 2011, Itin’s team conducted research on the SMARCAD1 gene and found that the gene was mutated in nine non-fingerprint members of the woman’s family. This is the cause of the absence of fingerprints. However, at that time, the gene problem was not studied in depth and the condition did not affect the health of the sufferer other than affecting the hands. After the discovery, the researchers took the name Adermatoglyphia to name this condition. Adermatoglyphia affects several generations in a family and is hereditary because it is caused by a genetic mutation. Professor Itin determined the status of the Apu family could be secondary Adermatoglyphia. However, more genetic testing and research is needed to confirm it. Recently, after completing the procedure and presenting medical documents, Apu received a new type of identification card issued by the Bangladesh government. This type of card uses retina scan and facial recognition data to verify identity. However, Apu has yet to obtain a driver’s license or buy a sim card and the process of obtaining a passport remains a dilemma for him.

The house is located in Ota area (Japan) built in 2016 on an area of ​​​​229m2 with a rather strange structure. The house is located in a shopping street. The east side of the house has a road, the south side is a 3-storey apartment building. The house is divided into two independent parts. Part is the living space of the mother, and the other part is for the son and small family. The house is designed with the purpose of being able to be converted to rent. The mother is on the first floor, while the couple’s son, wife and children are on the second and third floors. On the second floor, the owner arranges a living room with a small front yard. The third floor is the couple’s bedroom, the children’s bedroom and the bathroom. The first floor of the house has a balcony above. The 2nd floor is located in the middle as a piece between the two surfaces of the 1st and 3rd floors. To absorb light inside the first floor, the architect designed a sloping roof and a skylight along the edge of the roof. On the 2nd floor, this sloping roof becomes a slanted wall blocking the eyes of people living in the neighboring apartment. Along the edge of the balcony on the 2nd floor, green trees are planted to create a highlight of the green space. In the case of this house, the architect used a 3-dimensional form to ensure privacy and keep a distance from the surrounding houses. The architect believes that the design of the house in the middle of a crowded residential area ensures the surrounding circumstances and individual needs. The sloping roof style with glass panels like skylights attracts light inside. Area 2, in addition to the living room also has a kitchen. Large windows let light in. The bedroom on the 3rd floor still retains the traditional features of the old Japanese house style. Cozy and private sleeping space on the 3rd floor.

Produced | Sohu Technology

Author | Zhang Yating

Edit | Yang Jin

Huawei, which has always been prudent and prudent, has recently made intensive adjustments to its cloud business, which has aroused heated discussions in the outside world. On April 9, Huawei announced the appointment of Rotating Chairman Xu Zhijun as Chairman of Huawei Cloud, and Huawei Consumer BG CEO Yu Chengdong was appointed as Huawei Cloud CEO.

A week ago, on April 2, Huawei announced the abolition of Cloud&AI (cloud and computing) BG. On March 30, Huawei just appointed 11 members including Zhang Pingan (formerly President of Consumer Business Cloud Services) as Cloud&AI BG managers; Zhang Pingan was appointed as Cloud BU President.

At this point, the structural adjustment of the cloud business has come to an end in the turmoil. The latest Xu Zhijun + Yu Chengdong, the luxurious lineup of two generations of Huawei’s Titans, also made the speculation that “Huawei Cloud will develop independently or be sold” spread like wildfire. Some insiders bluntly said that “this is the management configuration of a listed company.”

At the Huawei Analyst Conference on April 12, Xu Zhijun gave a formal response to related hot topics. He pointed out that the abolition of cloud and computing BG is to focus on developing cloud business, increase the proportion of software service revenue, and reduce dependence on hardware.

As we all know, Huawei started by making communication equipment, and hardware revenue has always been the main driver. In recent years, the revenue of consumer business, which is dominated by mobile phones, has supported about 50% of its revenue. However, the blow of the ban made Huawei have to think about how to go on leaving the chip?

The cloud business is regarded by Huawei as a key “chess piece” for increasing software revenue. Guowei, the chief product official of Huawei Cloud, told Sohu Technology that this year’s cloud business will definitely continue to grow in three digits. On the one hand, Huawei attaches great importance to the cloud business, and customer demand is also great. According to official disclosures, Huawei Cloud will grow by 168% in 2020.

It should be noted that even if the cloud and computing BG has been withdrawn, the current cloud and computing entire sales and channel system remains consistent. Shi Jilin, President of Huawei Cloud and Computing Global Marketing and Sales Service Department, told media including Sohu Technology, “The future sales and channel system will be optimized and adjusted accordingly as business development needs.”

“The shortcoming that needs to be made up most is the user experience”

Compared with mainstream cloud vendors, Huawei Cloud is almost 10 years behind. Amazon AWS cloud computing service was commercialized in 2006, Alibaba Cloud was formally established in 2009, Tencent Cloud was commercialized in 13 years, and Huawei only established Cloud BU in 17 years and officially entered the public cloud.

“It is necessary to make up for shortcomings but also to find ways to surpass other manufacturers.” Fang Guowei told Sohu Technology that the biggest challenge for Huawei’s cloud business is that the business started relatively late. .

He pointed out that it took Huawei almost four years to go through the product development process of other manufacturers for about ten years. “We started to do public cloud in 17 years and developed more than 200 products in almost four years. The number of products is about the same as that of other vendors.”

The speed of HUAWEI CLOUD’s development should not be underestimated. According to Canalys’s Q4 China Cloud Service Market Report last year, Alibaba Cloud occupies an absolute leading position with a 40% share, Huawei Cloud ranks second with a 17% market share, and Tencent ranks third with a 15% share.

Dai Mingzhe, an analyst at Head Leopard Research Institute, told Sohu Technology that because of its first-mover advantage, Alibaba Cloud has always maintained the first place in market share. However, HUAWEI CLOUD is catching up with its accumulation in the ICT field and the precipitation of the government and enterprise markets, and is constantly shortening the gap with the leading manufacturers in the market.

Of course, in the pursuit of rapid development, Huawei Cloud also needs to make up for its shortcomings. “We are a traditional hardware-advanced company. There are no examples in the world of transforming into a software-advanced company. Our difficulties are imaginable.” Ren Zhengfei realized that changing from selling products to selling cloud services requires building cloud services. The ability and support to provide customers with the operation, operation and maintenance capabilities of cloud services.

A business manager of a domestic leading cloud vendor told Sohu Technology that Huawei Cloud’s long-tail customers have relatively weak operating capabilities. “Customers who consume hundreds of thousands a month in the order of magnitude, either look at the brand or buy the cheap ones. Huawei Cloud is a bit embarrassed in the middle. And the stability and performance of its products still need to be polished.”

Fang Guowei also bluntly told Sohu Technology that the shortcoming that needs to be made up most is the user experience to make the product more usable. Previously, it was more to quickly complement the functions, but there is still a lack of user experience. This year, it will be promoted as a focus.

“For example, in terms of product design, interaction design will strive to be more user-friendly; in terms of documentation, I hope that customers will understand how to operate immediately after reading the documentation, because a very important point in the cloud is self service.”

Relieve the pain of lack of core

Undoubtedly, sending two generals, Xu Zhijun and Yu Chengdong, can see how much Huawei attaches importance to the cloud business. Of course, frequent architectural shocks can also reveal Huawei’s entanglement in exploring cloud services.

At the beginning of 2020, Cloud&AI (cloud and computing) rose to Huawei’s fourth largest BG, Hou Jinlong served as the president of Cloud and Computing BG, and Peng Zhongyang as the president of Enterprise BG.

In January of this year, Huawei internally issued a document stating that consumer business CEO Yu Chengdong will concurrently serve as the president of Cloud and Computing BG, and Hou Jinlong, former president of Cloud and Computing BG, intends to appoint the chairman of Digital Energy. At that time, a Huawei insider revealed to Sohu Technology that “the development progress of the cloud business is average, and the slogans are more powerful. I hope Mr. Yu’s leadership can change the current state.”

On April 2, Huawei adjusted its cloud business again, appointing Zhang Pingan as the president of Cloud BU, and at the same time withdrew the cloud and computing BG, and the original server and storage were classified as “network products and solutions.”

About a week later, Huawei Cloud ushered in new personnel appointments again. Rotating Chairman Xu Zhijun was appointed as Huawei Cloud Chairman, Yu Chengdong was appointed as Huawei Cloud CEO, and Cloud BU added two deputy directors, Peng Zhongyang and Tao Jingwen in charge of corporate business. And process IT.

From the establishment of Cloud and Computing BG to the dismantling of Cloud and Computing BG, Cloud BU has once again returned to an independent state. Xu Zhijun said to the relevant changes that Huawei Cloud has always been an end-to-end independent BU. At the beginning of the establishment of HUAWEI CLOUD, it was hoped to coordinate the operation of servers and storage with HUAWEI CLOUD, but the collaborative operation was found to consume the energy of the cloud team.

He pointed out that the adjustments made now are to hope that the cloud business will be more independent and focus on developing cloud. At the same time, in the long run, we hope to increase the proportion of software service revenue.

Under the influence of the US ban, Huawei is also actively thinking about future business development issues. How does the future go? Xu Zhijun put forward five key strategic measures in the future, and the first one is to optimize the industrial mix and enhance the resilience of the industry, especially the enhancement of software capabilities, the strengthening of investment in advanced technology and weak-related industries and the investment in the smart auto parts industry.

Dai Mingzhe told Sohu Technology that under the ban, the chip industry chain will have a certain impact. However, Huawei’s cloud business will focus on software development in the future, and it is expected that this impact will be mitigated to a certain extent.

Can the cloud business become the next “cash cow”?

The cloud market still has development potential. Gartner data shows that as of 2019, the global cloud computing market reached US$188.3 billion, and it is expected that the market size will reach US$350 billion in 2023. According to the “2020 Cloud Computing Development White Paper” issued by the Institute of Information and Communications Technology, China’s cloud computing market is expected to continue to grow rapidly in the next four years.

At the same time, the cloud business has brought huge returns to the top manufacturers. According to the 2020 earnings report, AWS cloud services contributed 11.7% of revenue and 59% of profits for Amazon. According to Microsoft’s financial report, since the Q3 quarter of fiscal year 2020, revenue from the smart cloud business has become Microsoft’s largest source of revenue for three consecutive quarters.

Of course, before the cloud business brought huge returns, it was also a terrible “golden beast”. Only after a huge investment can manufacturers “lie down and make money.” From the official commercial use of Amazon AWS in 2006 to 2015, it took nearly 10 years to turn around. year. Alibaba Cloud was founded in 2009, but it achieved breakeven for the first time in the fourth quarter of 2020, and it took about 11 years from a huge loss to a balance.

Gu Fan, general manager of cloud service product management for AWS Greater China, once said that it took nearly 10 years for AWS to achieve its first $10 billion in revenue from scratch, and it took 23 months for the second $10 billion increase. The third $10 billion increase took 13 months.

Huawei hopes to avoid excessive capital investment and emphasizes the construction of application ecology. Ren Zhengfei pointed out in his internal letter at the end of last year, “We can’t simply take the same path as Ali and Amazon. We don’t have that much money. They have endless amounts of money in the US stock market. How do we develop, we must find a way out. , Rather than simply imitating.”

In China, BAT Internet vendors, three major operators, Huawei Cloud, Kingsoft Cloud and other vendors gathered in the cloud computing track. A cloud computing-related practitioner told Sohu Technology that compared with other vendors, Huawei’s advantages lie in sales capabilities, key customer relationships, hardware coordination capabilities, and a top-to-bottom ecosystem.

Through the growth process of Amazon and Alibaba, we can see that cloud is not a “quick money” business. From its exposure to cloud computing in 2011, to its formal entry into the public cloud in 2017, and to the further improvement of its strategic position today, Huawei has not disclosed the revenue of its cloud business to the public.

It is foreseeable that Huawei Cloud still has a long way to go in the process of increasing software revenue and optimizing the industry mix.

The land is lying halfway on a slope, surrounded by green trees and gradually sloping back with a height difference of about 1.5 m. The house was designed by architect Nguyen Dang Anh Dung and his associates for a family of 4 – 3 generations. The house is divided into 2 vertical parts by two separate stairs. The front staircase is for common space, from the garage to the living room. The back stairs are for home space. This staircase is processed so that the starting and ending steps of a ladder are in the same position on the plan, allowing more space for the stratosphere, creating a flexible and impressive structure. The kitchen and dining area are the common living spaces of the family with well-ventilated design, intimate materials and outstanding colors. The deviated design of the building creates spaces filled with natural light. The living room of the house is designed with elegant, simple yet stylish colors. The master bedroom is located in the center, can cover most of the common space and observe the grandfather’s room on the ground floor. Large balcony with many trees creates a fresh relaxing space. The bathroom is a space with the emphasis of youthful green tiles. The rooftop of the house is a relaxing space with a design that combines the traditional features of the tile roof and the modernity of unique architectural structures.

Produced | Sohu Technology

Author | Zhang Yating

Edit | Yang Jin

Huawei, which has always been prudent and prudent, has recently made intensive adjustments to its cloud business, which has aroused heated discussions from outsiders. On April 9, Huawei announced the appointment of Rotating Chairman Xu Zhijun as Chairman of Huawei Cloud, and Huawei Consumer BG CEO Yu Chengdong was appointed as Huawei Cloud CEO.

A week ago, on April 2, Huawei announced the abolition of Cloud&AI (cloud and computing) BG. On March 30, Huawei just appointed 11 members including Zhang Pingan (formerly President of Consumer Business Cloud Services) as Cloud&AI BG managers; Zhang Pingan was appointed as Cloud BU President.

At this point, the structural adjustment of the cloud business has come to an end in the turmoil. The latest Xu Zhijun + Yu Chengdong, the luxurious lineup of two generations of Huawei’s Titans, also made the speculation that “Huawei Cloud will develop independently or be sold” spread like wildfire. Some insiders bluntly said that “this is the management configuration of a listed company.”

At the Huawei Analyst Conference on April 12, Xu Zhijun gave a formal response to related hot topics. He pointed out that the abolition of cloud and computing BG is to focus on developing cloud business, increase the proportion of software service revenue, and reduce dependence on hardware.

As we all know, Huawei started by making communication equipment, and hardware revenue has always been the main driver. In recent years, the revenue of consumer business, which is dominated by mobile phones, has supported about 50% of its revenue. However, the blow of the ban made Huawei have to think about how to go on leaving the chip?

The cloud business is regarded by Huawei as a key “chess piece” for increasing software revenue.Guowei, the chief product official of Huawei Cloud, told Sohu Technology that this year’s cloud business is definitely still growing in three digits. On the one hand, Huawei attaches great importance to the cloud business, and customer demand is also great. According to official disclosures, Huawei Cloud will grow by 168% in 2020.

It should be noted that even if the cloud and computing BG has been withdrawn, the current cloud and computing entire sales and channel system remains consistent. Shi Jilin, President of Huawei Cloud and Computing Global Marketing and Sales Service Department, told media including Sohu Technology, “The future sales and channel system will be optimized and adjusted accordingly as business development needs.”

“The shortcoming that needs to be made up most is the user experience”

Compared with mainstream cloud vendors, Huawei Cloud is almost 10 years behind. Amazon AWS cloud computing service was commercialized in 2006, Alibaba Cloud was formally established in 2009, Tencent Cloud was commercialized in 13 years, and Huawei only established Cloud BU in 17 years and officially entered the public cloud.

“It is necessary to make up for shortcomings but also to find ways to surpass other manufacturers.”Fang Guowei told Sohu Technology that the biggest challenge for Huawei’s cloud business is that the business started relatively late..

He pointed out that it took Huawei almost four years to go through the product development process of other manufacturers for about ten years. “We started to do public cloud in 17 years and developed more than 200 products in almost four years. The number of products is about the same as that of other vendors.”

The speed of HUAWEI CLOUD’s development should not be underestimated. According to Canalys’ Q4 China Cloud Service Market Report last year, Alibaba Cloud occupies an absolute leading position with a 40% share, Huawei Cloud ranks second with a 17% market share, and Tencent ranks third with a 15% share.

Dai Mingzhe, an analyst at Head Leopard Research Institute, told Sohu Technology that because of its first-mover advantage, Alibaba Cloud has always maintained the first place in market share. However, HUAWEI CLOUD is catching up with its accumulation in the ICT field and the precipitation of the government and enterprise markets, and is constantly shortening the gap with the leading manufacturers in the market.

Of course, in the pursuit of rapid development, Huawei Cloud also needs to make up for its shortcomings. “We are a traditional hardware-advanced company. There are no examples in the world of transforming into a software-advanced company. Our difficulties are imaginable.” Ren Zhengfei realized that changing from selling products to selling cloud services requires building cloud services. The ability and support to provide customers with the operation, operation and maintenance capabilities of cloud services.

A business manager of a domestic leading cloud vendor told Sohu Technology that Huawei Cloud’s long-tail customers have relatively weak operating capabilities. “Customers who consume hundreds of thousands a month in the order of magnitude, either look at the brand or buy the cheap ones. Huawei Cloud is a bit embarrassed in the middle. And the stability and performance of its products still need to be polished.”

Fang Guowei also bluntly told Sohu Technology that the shortcoming that needs to be made up most is the user experience to make the product more usable. Previously, it was more to quickly complement the functions, but there is still a lack of user experience. This year, it will be promoted as a focus.

“For example, in terms of product design, interaction design will strive to be more user-friendly; in terms of documentation, I hope that customers will understand how to operate immediately after reading the documentation, because a very important point in the cloud is self service.”

Relieve the pain of lack of core

Undoubtedly, sending two generals, Xu Zhijun and Yu Chengdong, can see how much Huawei attaches importance to the cloud business. Of course, frequent architectural shocks can also reveal Huawei’s entanglement in exploring cloud services.

At the beginning of 2020, Cloud&AI (cloud and computing) rose to Huawei’s fourth largest BG, Hou Jinlong served as the president of Cloud and Computing BG, and Peng Zhongyang as the president of Enterprise BG.

In January of this year, Huawei internally issued a document stating that consumer business CEO Yu Chengdong will concurrently serve as the president of Cloud and Computing BG, and Hou Jinlong, former president of Cloud and Computing BG, intends to appoint the chairman of Digital Energy. At that time, a Huawei insider revealed to Sohu Technology that “the development progress of the cloud business is average, and the slogans are more powerful. I hope Mr. Yu’s leadership can change the current state.”

On April 2, Huawei adjusted its cloud business again, appointing Zhang Pingan as the president of Cloud BU, and at the same time withdrew the cloud and computing BG, and the original server and storage were classified as “network products and solutions.”

About a week later, Huawei Cloud ushered in new personnel appointments again. Rotating Chairman Xu Zhijun was appointed as Huawei Cloud Chairman, Yu Chengdong was appointed as Huawei Cloud CEO, and Cloud BU added two deputy directors, Peng Zhongyang and Tao Jingwen in charge of corporate business. And process IT.

From the establishment of Cloud and Computing BG to the dismantling of Cloud and Computing BG, Cloud BU has once again returned to an independent state. Xu Zhijun said to the relevant changes that Huawei Cloud has always been an end-to-end independent BU. At the beginning of the establishment of HUAWEI CLOUD, it was hoped to coordinate the operation of servers and storage with HUAWEI CLOUD, but the collaborative operation was found to consume the energy of the cloud team.

He pointed out that the adjustments made now are to hope that the cloud business will be more independent and focus on developing cloud. At the same time, in the long run, we hope to increase the proportion of software service revenue.

Under the influence of the US ban, Huawei is also actively thinking about future business development issues. How does the future go? Xu Zhijun put forward five key strategic measures in the future, and the first one is to optimize the industrial mix and enhance the resilience of the industry, especially the enhancement of software capabilities, the strengthening of investment in advanced technology and weak-related industries and the investment in the smart auto parts industry.

Dai Mingzhe told Sohu Technology that under the ban, the chip industry chain will have a certain impact. However, Huawei’s cloud business will focus on software development in the future, and it is expected that this impact will be mitigated to a certain extent.

Can the cloud business become the next “cash cow”?

The cloud market still has development potential. Gartner data shows that as of 2019, the global cloud computing market reached US$188.3 billion, and it is expected that the market size will reach US$350 billion in 2023. According to the “2020 Cloud Computing Development White Paper” issued by the Institute of Information and Communications Technology, China’s cloud computing market is expected to continue to grow rapidly in the next four years.

At the same time, the cloud business has brought huge returns to the top manufacturers. According to the 2020 earnings report, AWS cloud services contributed 11.7% of revenue and 59% of profits for Amazon. According to Microsoft’s financial report, since the Q3 quarter of fiscal year 2020, revenue from the smart cloud business has become Microsoft’s largest source of revenue for three consecutive quarters.

Of course, before the cloud business brought huge returns, it was also a terrible “golden beast”. Only after a huge investment can manufacturers “lie down and make money.” From the official commercial use of Amazon AWS in 2006 to 2015, it took nearly 10 years to turn around. year. Alibaba Cloud was founded in 2009, but it achieved breakeven for the first time in the fourth quarter of 2020, and it took about 11 years from a huge loss to a balance.

Gu Fan, general manager of cloud service product management for AWS Greater China, once said that it took nearly 10 years for AWS to achieve its first $10 billion in revenue from scratch, and it took 23 months for the second $10 billion increase. The third $10 billion increase took 13 months.

Huawei hopes to avoid excessive capital investment and emphasizes the construction of application ecology. Ren Zhengfei pointed out in his internal letter at the end of last year, “We can’t simply take the same path as Ali and Amazon. We don’t have that much money. They have endless amounts of money in the US stock market. How do we develop, we must find a way out. , Rather than simply imitating.”

In China, BAT Internet vendors, three major operators, Huawei Cloud, Kingsoft Cloud and other vendors gathered in the cloud computing track. A cloud computing-related practitioner told Sohu Technology that compared with other vendors, Huawei’s advantages lie in sales capabilities, key customer relationships, hardware coordination capabilities, and a top-to-bottom ecosystem.

Through the growth process of Amazon and Alibaba, we can see that cloud is not a “quick money” business. From its exposure to cloud computing in 2011, to its formal entry into the public cloud in 2017, and to the further improvement of its strategic position today, Huawei has not disclosed the revenue of its cloud business to the public.

It is foreseeable that Huawei Cloud still has a long way to go in the process of increasing software revenue and optimizing the industry mix.