"Why can Wave seize the opportunities brought by cloud computing in this decade? I think Wave did one thing right: technology! In 2019, his new identity is Vice President of Inspur Information and General Manager of Inspur's Server Products Department, after many years before that, he served Intel, a global giant upstream of the industrial chain.
When he was in charge of the channel at Intel, he began to contact the wave and witnessed the take-off of the wave for more than a decade. At that time, in the global server landscape, IBM, HP, Dell firmly controlled the market, inspur and other local manufacturers just started, no technology, no market, in front of these giants weak like an unarmed child.
In 2003, the wave server at that time decided that it must do four and eight roads, go to the high-end, and go upstream, otherwise, it will be forever sealed below by the manufacturers of technology.
Inspur's investment in research and development has been fiercely insisting on more than ten years, from having nothing to leading the industry wind. In the decade of cloud computing development, the global server market has changed, and the wave has not only stood first in the Chinese market, but also ranked in the top three in the world.
<h1 class="pgc-h-arrow-right" > decade of cloud computing: from technology and business disruption to pattern reshaping</h1>
In 2006, when Amazon was planning to take out its redundant computing power and storage space to "make money", it may not have thought that cloud computing would bring earth-shaking changes to the entire IT industry.
At the beginning, Amazon's original intention was only to take out its excess computing power to serve its customers, and slowly formed a new industrial logic of cloud computing in the process of service.
From a technical point of view, when storage and computing power are migrated to the cloud on a large scale, it poses a challenge to the traditional IT architecture. In 2009, Intel processors began to support virtualization technology, which has also supported the rapid development of cloud computing. Over the next decade, IT infrastructure has evolved.
From the perspective of business logic, the previous 2B market was all peer-to-peer services, selling products and services. While cloud computing is essentially a sharing economy (which people didn't realize a decade ago), customers have changed the way they buy.
Shen Rong believes that the changes brought about by cloud computing are manifested in several aspects: First, the centralization and standardization of IT infrastructure has spawned the development of ultra-large-scale data centers. The second is that the emergence of super CSP has fundamentally changed the development mode of the industry and promoted the development of open computing. The third is that the development of software-defined technology has promoted the convergence of computing, storage, and networking, and the convergence of CT and IT.
From these points of view, the changes brought by the development of cloud computing in the past decade to the IT industry, from technology to business, have changed the traditional IT industry division of labor and the competitive landscape.
In the traditional IT industry, the upstream giant of hardware is Intel, which makes chips, and the downstream hardware manufacturers such as IBM, HP, Dell, and Inspur; the upstream of software is Microsoft, which does the operating system, and then there is Oracle that does the database, THE SPA that does ERP, and so on. After the rise of cloud computing, the entire industry chain has slowly changed, and everyone's role is also somewhat "confused", and the results of ten years have also risen and fallen.
Amazon is a pure Internet company, with strong operational capabilities, as the originator of cloud computing, has created a new industry, and has also led the way in ten years.
In the decade of cloud computing, another one worth mentioning is Microsoft. Microsoft, which missed the Internet and the mobile Internet, seized the opportunity of cloud computing. After Microsoft CEO Nadella took office in 2014, he put forward the strategy of "cloud first, mobile first", and resolutely continued to invest in the direction of cloud computing, even at the expense of the biggest cash cow - Office cloudification. Microsoft from 2014 to fully develop cloud computing, it took less than three years to turn around and enter the second place in the world, and has maintained a high growth rate so far. It is also because of the success of cloud computing that Microsoft's stock price has soared, and has surpassed Apple to return to the first place in the global market value (after the release of Apple's new machine this year, it was surpassed by Apple). It can be said that with cloud computing, Microsoft has regained its glory.
Amazon is using to create a new industry to become a new king, and Microsoft is seizing new opportunities to turn around in one fell swoop. The public cloud market has grown more than 4x over the past decade and is the main factor contributing to the increase in server demand. It can be said that the outbreak of public clouds has also brought huge shocks to the server market.
More than a decade ago, IBM was the king of the server industry, but in its view, servers are pure hardware, and profits will only get lower and lower. So after the rise of the public cloud, the acquisition of Softlayer officially entered the public cloud market and expanded upstream of the value chain. But then IBM's public cloud faded, and the acquisition of Red Hat at the end of last year shifted to the mixed cloud. Similar to IBM, HP, Cisco, Fujitsu and other manufacturers have also invested in the public cloud, but to no avail.
Among IT infrastructure vendors, it is the wave that really seizes the opportunities of cloud computing. As an IT infrastructure provider, on the one hand, we continue to develop core technologies and maintain the leading position in technology. On the other hand, close to the user, according to the user's needs to develop products, and even jointly develop products with users. Inspur has not only become a beneficiary of the explosion of the cloud computing market, but also taken this opportunity to comprehensively enhance its technical strength.
"Looking back at the ten years of cloud computing reform, the development of the cloud as a technological innovation vendor is limited. Cloud computing is not only a technological change, but the overall change of the industry, technology, discourse power distribution and collaboration rules, have changed, the reason why many enterprises have not seized the opportunity of cloud change, because the cloud computing reform has been regarded as the innovation of enterprise information needs, it is difficult to adapt to the public cloud and other large-scale, super-large-scale users of the new demand model. Shen Rong said.
To sum up Amazon, Microsoft, and Inspur can stand out in the cloud computing revolution, understand that there are several reasons for thinking: first, technology first. Amazon's technology goes without saying. Microsoft, as a former software giant, has always been one of the companies with the most investment in research and development in the world, with a large number of technical reserves, which has played a key role in the transformation. Inspur has been investing in research and development at all costs since 2003, from catching up to leading on the server, constantly meeting the changes in user needs.
The second is determination, Amazon, Microsoft, and Inspur are all looking in the direction and plunging into it. Microsoft's abandonment of the cash cow is fully clouded, and Inspur has made comprehensive adjustments to its business model and organizational structure to meet the needs of users, which are all manifestations of determination.
The third is the leap of thinking. As Shen Rong said, cloud computing is not only a revolution in IT technology, but also brings about changes in industrial rules, business models, and the transfer of discourse power. Such changes are not much different from the significance of an industrial revolution, so each manufacturer must find its own role and take advantage of the situation rather than bucking the trend.
<h1 class= "pgc-h-arrow-right" > "jump" in change: technology-based, customer-centric</h1>
Every industrial change will bring about a major reshuffle of the industrial pattern. Cloud computing redefines IT infrastructure, allowing IT capabilities to be used as naturally as social infrastructure such as water, electricity, and gas. Changes in infrastructure have also rearranged the entire industrial landscape that provides infrastructure services.
In terms of underlying hardware, the size of the global server market has grown by 101% over the past decade due to the development of the Internet industry and the popularity of cloud computing. The wave far exceeded this growth rate, achieving more than 52 times growth in ten years. Today, Inspur has ranked in the top three in the world for three consecutive years, and is the only manufacturer in the top three whose share continues to grow, and the gap with the previous manufacturers is narrowing.
In terms of cloud computing, it is divided into three layers: IaaS, PaaS and SaaS. In the IaaS layer, which is commonly known as the public cloud field, Amazon is still leading the way, Microsoft is catching up, and Ali from China has also stood out in the cloud computing arms race and become an important force, ranking third in the world. The concept of cloud computing ecological development has made it more colorful in the SaaS layer, and countless enterprises have obtained new opportunities.
Inspur is a model for Chinese IT companies to go from scratch and from having to being strong in technology. China's IT industry from weak to strong, can not be separated from a number of enterprises such as Inspur that have the courage to continue to invest in technology. At the beginning of the 20th century, China's IT industry lagged far behind the United States, and catching up with technology was a difficult and long process. There is a process of energy from accumulation to explosion, and the results seen today come from the silent efforts of many years ago. With years of continuous investment in technology, Inspur has the opportunity to gain a place in the cloud computing revolution.
According to Gartner/IDC 2019Q3 data, Inspur servers continue to grow, with shipments accounting for more than 10% of the global share and China's share of more than 37%, ranking third in the world and first in China. Meanwhile, IDC2019Q3 data shows that global server vendor revenue fell 6.7% year-on-year to $22 billion in the quarter, and shipments fell 3% year-on-year to 3.07 million units. The top three global server market shipments and sales were Dell, HPE and Inspur, with shipment shares of 16.4%, 10.9% and 10.3%, respectively. Among them, Dell and HPE shipments fell by 10.2% and 9.3% year-on-year, while Inspur maintained steady growth, an increase of 11.1% year-on-year.
The opportunities for industrial change are the same for every manufacturer. Why can Inspur seize the opportunity of cloud computing? The first is the "technology" that Shen Rong said, there is no shortcut to take at this point, and technology is a necessary condition for the technology industry to go steadily and for a long time. Second, it is the customer thinking of the wave, not the competitive thinking.
As our world becomes fully digitized, the main challenges for customers come from three aspects: one is insufficient computing power, the other is excessive energy consumption, and the third is poor data utilization. Inspur helps customers succeed from four dimensions: the first is integration, forming the core form of infrastructure architecture for future computing; the second is openness, embracing open standards, and actively participating in the formulation of international standards; the third is agile, which changes according to the business needs of users; and the fourth is relying on the power of ecology, "In this world, there is nothing that a person can do, and it must be successful to cooperate with people." Shen Rong said.
Compared with the market share obtained, I understand that the greater value of the wave to the industry lies in the precipitation of the JDM model.
J:Joint focuses on smart computing product innovation to create a closely coupled ecological model of integrated ecology and diversified customer needs;
D: Design/Development/Deliver builds a business chain of agile innovation and rapid delivery from user requirements, architecture design to product implementation;
M: Manufacture relies on the industrial Internet platform to realize the automated production capacity of "one-click order" and the flexible production capacity of "one-piece order".
Internet companies are evolving very fast, and their needs are entirely new. The essence of JDM is to build an agile industrial chain based on customer needs, or to transform the industrial chain into the Internet. In order to respond to customer needs with agility, Inspur has completely transformed its internal organizational structure and production processes. The JDM model has transformed from a standardized operating model to a mass customization model, and won the 2018 Ram Charan Management Practice Award.
<h1 class="pgc-h-arrow-right" > keywords of the new decade: AI, Agile, Globalization</h1>
Driven by cloud computing, data resources can be quickly transferred and shared between various industries, making large-scale social collaboration possible, thereby promoting the transformation and innovation of the business model of the tertiary industry. In particular, with the superposition of 5G, AI, big data, IoT and other technologies, technological innovation and business changes with cloud computing as the core have accelerated human society towards the era of wisdom.
IT's revolution is everywhere, not stagnant, and the market is pregnant with the next era. The era of wisdom has brought new changes: the diversification of scenes, the coexistence of multiple computing powers, and the Internetization of models. Inspur has seized the opportunity of cloud computing over the past decade and is today a "seed player" for the smart age.
"Focusing on smart computing, JDM, and globalization are the three power points of The Wave in 2020." Shen Rong said.
Let's start with AI. Has been closely serving Tencent, Baidu, Didi, ByteDance and other Internet companies that are at the forefront of the industry, inspur has long had insight into the needs of AI, laid out in advance, and is now in a global leadership position. Inspur hardware products cover three major areas of GPU, FPGA and ASIC, the product line is the most complete and rich in the industry; it has developed a series of AI platform software such as Caffe-MPI framework, AIStation, and yuan brain, and is an AI platform solution provider with full-stack technology capabilities. According to IDC data, Inspur's share of China's AI infrastructure market has been more than 50% since 2018.
Look at Agile. The JDM business model connects the entire business chain from customer demand, research and development to production and delivery, providing users with customized products and services throughout the process, subverting the traditional standardized operation mode, and opening the era of large-scale customization of servers. Shen Rong likened the characteristics of this model to "mingling with customers", and it is precisely because it can respond to customer needs with agility, inspur's market share in the Internet industry has reached 42%. In Shen Rong's view, JDM has become a barrier to the tide, and it is difficult for other companies to learn.
"Adhere to open computing, further improve the JDM model, improve the efficiency of business chains, consolidate the advantages in the Internet industry, and develop platform solutions such as integrated architecture and AI, build a partner system that goes deep into the industry market, and seize the new needs of traditional enterprises in cloud computing, big data, AI and other fields to gain a larger share." Shen Rong said.
Finally, I know how to say a few more words about internationalization. In the global IT industry pattern, the strength of Chinese enterprises has increased significantly in recent years, and a group of comprehensive players such as Inspur and Alibaba Cloud have emerged, but they need to continue to accelerate the development process of globalization.
Shen Rong's wave of "transfers" from Intel in 2019 can be said to have come with a mission. Inspur is now at the forefront of the industry, both in terms of technology, product and market share, and the next thing to do is to replicate this capability globally. Shen Rong, who has served intel for many years, has a better understanding of the entire industry and the global market, which is precisely its advantage.
"Inspur will further accelerate the development of internationalization, continue to expand the overseas business system, at present, Inspur has a complete partner system and business system in North America, Japan and South Korea, Europe, as well as Southeast Asia and Africa and other regions, in 2019, Inspur's overseas business continues to expand, and will achieve faster growth in 2020." Shen Rong stressed that Europe and the United States will be the next important markets that the wave will break through, and this is also the base camp of traditional technology giants, which is not easy.
"Inspur has a dream to become a global leader in computing solutions." In Shen Rong's view, Chinese companies want to have a place on the world stage, not just to do the simple physical work of moving bricks, so he participated in this dream, "In the server field, Inspur hopes to lead this market with technology and become an important player." ”
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