At the end of November last year, Lao Lu came to Beijing to participate in an Oracle cloud technology application conference.
When it comes to Oracle, it is the world's second-largest software company, ahead of IBM and SAP, with a market value of $150 billion from the queue of established software companies.
But in today's IT session, another echelon has sprung up. SaaS service company Salesforce quickly grew to $50 billion in less than 10 years. Behind Amazon's nearly $300 billion market capitalization, AWS Cloud Computing is the fastest growing business.
Oracle wants to move from the old software echelon to the ladder team and transform the cloud service.
Lao Lu is very concerned about the changes in the field of cloud computing, which is the main reason why he came to Beijing to study. As the initiator of the CIO/CTO organization in Shandong, he often organizes discussions on cutting-edge technologies.
Zhang Heqing is a friend of Lao Lu for many years. He is the information director of Shandong Bohai Piston. Zhang Heqing is leading his technical team to develop a new robot production line. This production line has received the support of the state and received an investment fund. The development of new production lines requires new technical support.
Another Qingdao company transformed into a special call for new energy vehicle charging, and information director Wu Zhanzhong also chose cloud computing for innovation.
"In the past few years, Oracle has had a much lower voice than Microsoft, SAP, and IBM in Shandong. Until July of this year, Oracle expanded its sales team in Shandong," said Lao Lu. This time, he helped the IT managers in the circle to see the changes in Oracle technology in advance.
Challenge an expensive software is no longer the user's favorite
In addition to companies such as Bohai Pistons and special calls, cloud computing is needed to support innovation. The needs of many corporate users are also changing to varying degrees.
China National Heavy Duty Truck Xing Hongbo has talked about Oracle in the IT circle for many years. He feels that the traditional software vendors have perfect professional systems and precise and meticulous management, but the implementation is more difficult. The reason is that the model gap between Chinese enterprise management and software management is relatively large. Another feeling of Xing Hongbo is: "The software is still too expensive, it is best to be grounded, otherwise it is difficult for enterprises to adopt."
A manufacturing IT manager reveals the true situation of the company: "Although the cloud computing concept is very hot, our company will never use public clouds." The IT manager's company produces steel pipes, takeovers, etc. in China. Market share is in the top three positions, and in almost any room, radiators and water pipes have their products.
"We don't trust the public cloud, but the domestic business environment makes it impossible for us to put our design drawings on the cloud. It doesn't depend on the security of the software vendor cloud, but on the nature of the enterprise. Even with the software. It is not acceptable for manufacturers to sign confidentiality agreements."
Since last year, China's corporate service sector has gradually warmed up, and users' demand for cloud computing products has changed:
1 Products should have more affinity, which can provide users with a close understanding and perfect service.
2 The price is moderate, so that small and medium-sized enterprises and even a large number of grassroots enterprises can be used for innovation.
3 With appropriate usage scenarios, Chinese companies do not have a mature management system of foreign companies, and they need technology and business to be combined.
4 Public and private clouds and local applications can be quickly switched to meet the security and privacy needs of enterprises.
In the face of these subtle and huge user changes in the Chinese market, Loic Guisquet, president of Oracle Asia Pacific, said: "It is not that Oracle does not see the needs of users, and the transformation is slow, but the technology launched by Oracle takes time to mature."
Challenge 2 Why is the ecosystem important to cloud companies?
Hao Junhua has been a software agent for Oracle for nearly 20 years. He is called a gold agent by friends in the circle.
The agent is to make a lubricant between the sales of the software company and the enterprise users, to explore the enterprise customers, and then to win the software license to sell to the user from the sales, to help customers solve technical problems, and to earn the intermediate price difference.
Ten years ago, there were no Alibaba Cloud, Tencent Cloud and dozens of SaaS service companies in China. At that time, as a top US software vendor, Oracle's major event could include a 5-star hotel. The head of the enterprise IT will come to the conference and will be shocked by this "high-up" posture.
At that time, Hao Junhua also made a lot of money with his brother, in his own words: "Do your own thing, don't eat and wear." And they are on the line of Oracle sales, and some have earned in 2 years. Immigration to Singapore.
However, in recent years, Hao Junhua has a slight grievance and a bit of worry.
"My first concern is that foreign companies are not yet sufficiently affable, especially to users."
"The second concern is that Oracle is transforming into the cloud, and we may not have room to survive in the future."
Agents are not afraid of Oracle's transformation of cloud services, cloud to land, all users can not directly find Oracle to solve, but also need third-party services. Oracle will not build a service team of tens of thousands of people.
But agents need a space for transformation. If you follow the original mode, there must be no more and more space. Hao Junhua hopes that Oracle will be more transparent in its future cooperation policy. This transparency makes them more willing to recommend Oracle products to customers. Today is the database, and tomorrow is the cloud.
"Oracle's product customers say good, real transformation, products are not obstacles, the difficulty lies in the transformation of traditional mechanisms. We hope that Oracle's transformation will succeed, and we can also find our own future space." Hao Junhua said.
This year's domestic cloud market, Alibaba Cloud, Tencent Cloud and Huawei Cloud competed to hold their own developer conference. The BAT giant launched an entrepreneurial support program, which is also tightly bundled with various cloud resources. In terms of partners, Tencent Cloud, which is backing up, also held its own partner conference; Alibaba Cloud also cooperated with UFIDA and Neusoft to provide products to enterprise users.
The changes in the domestic cloud market are revealing a message that the competition among cloud computing enterprises is no longer the ability to fight alone, but the bonding of the ecosystem. Let more third parties are willing to promote their cloud services, so that more entrepreneurs and different industry players can integrate into their cloud ecosystem, and they will be competitive in the future.
Oracle needs to forget the identity of Big Brother and build a circle with the little brothers.
Challenge 3 and when Tencent Cloud will build a data center
"Although there are already many benchmark users in China, many enterprise users still can't easily use Oracle's cloud computing products. Because users can't access domestic data centers, but access to distant overseas data centers, the speed of use will change. Slow. The product is good, but the performance is not enough." An Oracle channel provider said to Geek Park.
Oracle is addressing this dilemma in the data center.
Previously, Oracle was in 19 data centers around the world. But no data center in China has always been a shortcoming in its domestic market. Subject to license restrictions, foreign companies must find a partner in China to operate the cloud computing business. When Oracle announced the news of building a data center in China with Tencent, it really brought some surprises to the enterprise market.
Li Yuming, head of Oracle ERP Cloud China, chats with his clients. The customer said: "In fact, apart from Microsoft, the names of several Chinese partners of SAP, IBM, and Amazon don't seem to be remembered at once. But Tencent Cloud's The name is really loud."
Wu Chengyang, general manager of China's technical products division, explained the cooperation between the two parties: "Oracle's advantage is enterprise-level customers. Tencent's advantage is consumer-grade users. Oracle values ​​the cross-border integration of the two sides. Another reason is that Tencent has Internet transactions. Experience, Oracle's cloud computing technology and Tencent's social network are integrated to provide technical support for end users' Internet transactions.
Once Oracle and Tencent Cloud's data center are put into operation, Oracle's database will officially go to the cloud. In the future, China’s market goal will become a priority for all customers.
Some insiders also revealed to Geek Park that "Database negotiations between Oracle and Tencent Cloud actually started two years ago, and there was an interruption in the middle. Until now, there has been initial progress. Tencent Cloud and IBM and other vendors Achieved cooperation, but in the end there is not much noise, which is also related to the changes in the strategy of Tencent Cloud."
Because of years of accumulation, Oracle is faster than Salesforce in the domestic market. For example, Yanhua Financial Control is a Chinese customer that Salesforce and Oracle bid at the same time. Because it is a customer of the local financial industry, it can be promoted as a typical case of a good cloud customer. The competition between the two sides is fierce. In the end, the customer chose Oracle, and Oracle was more expensive than the price reported by Salesforce.
Ye Tianlu, head of SaaS business in China, said: "Domestic corporate customers value the comprehensive strength of the company, including investment in the Chinese market, products, service and support to customers, and partners."
The cooperation between Oracle and Tencent Cloud can really break through various commercial obstacles, and the rapid landing determines the future position in the competitive landscape of domestic SaaS services.
The concept of challenging the four clouds is still only at the storage and computing level. It takes time for the complete PaaS and SaaS.
Oracle's soul characters Larry Ellison and Jobs are good friends for many years. Larry and Jobs have similar dreams, Jobs wants to create Apple's closed-loop ecology, and Larry hopes that Oracle will establish an enterprise-level closed-loop ecology.
In this huge ecology, in the past, software and hardware were chosen for users to choose; now it is SaaS, PaaS, IaaS, and various cloud computing products.
Oracle wants to build a different SaaS offering that is available to a single business. These products can be integrated together and are not fragmented in the data. So far, no enterprise-level service provider has been able to offer SaaS products covering all businesses.
Chinese customers of Oracle SaaS products include: Haier Group, Lenovo, PCCW, Xinlai Group, Langkun Internet of Things, Noah Consulting, Cijiajia, Gaode, Huatai Insurance, etc. Although the overall solution is not necessarily the immediate need of all companies, it is suitable for the taste of many large companies.
The ability to open data, behind the SaaS product requires the support of the PaaS platform. Oracle also offers its own PaaS platform behind SaaS products.
In cloud computing, IaaS provides the underlying technology, PaaS provides platform technology, and SaaS provides application services. This is the three forms of cloud. There are now more cloud service providers in China's IaaS and SaaS, but PaaS vendors are seriously lacking.
The reason for this situation is: First, the entry barrier of PaaS is relatively high. Only a handful of vendors are able to offer PaaS. Secondly, the current user experience of PaaS technology is not good enough, and some customers have used PaaS technology, but they are discouraged.
The technical difficulty of PaaS is that it is in the middle of SaaS and IaaS, compatible with SaaS, and also supports IaaS. And can help companies develop third-party applications themselves. The needs of enterprise users in different industries are very different, which can support enterprises to develop their own unique needs, but can promote the sales of SaaS products.
PaaS can also solve some practical problems for business users. For example, I bought some SaaS products from different manufacturers and wanted to integrate and integrate after one year. The HR cloud is Oracle's, other applications come from other vendors, and some applications that are placed locally by the enterprise, then the PaaS platform is required to open all application data.
Wu Chengyang’s point of view is: “After a decade, almost all applications of the enterprise are in the cloud. Users will still encounter information. Or use cloud computing to test and develop products, and then put back the developed system. Going locally, these require cloud resolution at the PaaS platform level."
Challenge five local entrepreneurs to come
"Traditional giant companies are mostly not in the competition of the industry, but in the invasion of foreign industries. Oracle should not worry about IBM's competition, but should be alert to the spoilers of external rivals." A netizen commented on Oracle.
In 2016, the first enterprise service market in the United States will appear. The cloud service share exceeds the traditional software. This is CRM (Customer RelaTIonship Management). Oracle has a new understanding of this, CX customer experience is one level higher than CRM, which can introduce social platforms and social concepts in customer relationship management.
This is also a potential reason for the cooperation between Oracle and Tencent. However, it cannot be underestimated that the competition in the domestic CRM field has been fierce in the past year. For example, the founder is the EC software from the Tencent Department. It has been able to get through QQ, WeChat, mobile phone, landline, SMS, and mail. The monthly income is 10 million yuan, and there is also a social concept. Secondly, they enjoyed multiple rounds of financing for customers, and Hechuang Technology was listed on the New Third Board. The two companies quickly competed in the domestic market.
Oracle can't ignore these bright competitors.
In addition, corporate customers prefer to choose a complete solution offered by a company, or are willing to choose a different company's solutions together, the future is still unknown.
If the customer can connect the various systems in the future, Oracle provides software that can satisfy the customer. This is a big advantage for Oracle today.
But measuring a single application alone, Oracle and Chinese companies do not have much advantage. In the Chinese market, we want to buy human resources management and recruit products from Beisen; customer management has sales and so on; ERP has Kingdee and UF.
Previously, domestic manufacturers were relatively closed in the fierce competition, but it was an inevitable trend from closed to joint, and it was also a kind of benign competition. The attitudes of various manufacturers to open APIs became more and more clear, such as TeambiTIon and WorkTIle at the collaboration level. Start a business
Companies, vying to be their own open platform, can already get through with third-party software.
There is also a more robust SaaS platform behind the WeChat Enterprise and Ali nails.
On the road to cloud services, more domestic users, Oracle has to run faster.
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