Recently, Ren Zhengfei mentioned at Huawei's "Problem Unveiling" Spark Award Expert Symposium that Huawei has completed the replacement development of 13,000+ devices and the repeated replacement development of 4,000+ circuit boards in three years. Although Ren Zhengfei mentioned software in this speech in only a few words, the amount of information is extremely large, and the big move behind it directly refers to domestic substitution.
Huawei has strongly stirred up the ERP market
"In April this year our MetaERP will swear to make our own management system MetaERP software entirely using our own operating system, database, compiler and language. MetaERP has gone through the practical test of the application of the company's global departments, passed the test of the company's general ledger use annual settlement, our company's account is very complex in the industry, has successfully proved that MetaERP is confidently promoted. Many design tools have also been exposed to HUAWEI CLOUD for social applications, gradually overcoming the embarrassment of supply cuts. ”
Recently, Ren Zhengfei revealed that Huawei MetaERP will swear in April, Huawei completely uses its own operating system, database, compiler and language, made its own management system MetaERP software, and is sure to promote MetaERP, which means that after successfully solving the operating system "stuck neck" problem, Huawei has also made breakthroughs in the ERP field.
It is understood that the three major basic software recognized in the industry include operating systems, databases, and middleware, but Western manufacturers have long been in a monopoly position, and in some important areas and key matters, Huawei's oath meeting is Huawei's common "official announcement ceremony and launching ceremony".
This is the first time that Huawei has officially acknowledged the existence of MetaERP after long rumors in the market. Just as SAP and Oracle have implementation service ecosystems, the launch of MetaERP is bound to bring about the rise of a new ecosystem. As soon as the news came out, the capital market with a keen sense of smell has also taken the lead in reacting, and the stock prices of Huawei ERP concept companies such as Saiyi Information, Hande Information, Farben Information, and iSoftStone have been sharply pulled, while the stock price of Yonyou Network, which also focuses on ERP software, once fell to the limit.
In this regard, Yonyou Network insiders responded to media reporters: "Huawei's entry into ERP has an impact on the industry, but its use scenarios and priorities are different from third-party ERP vendors. Huawei's self-research is first and foremost for its own use. ”
ERP domestic substitution era opportunities
In 2019, after the software supply was cut off one after another, Huawei had to choose an independent path - adopting the strategy of self-development and joint partner research and development to achieve self-sufficiency and ensure the continuity of R&D tools, and this time, in addition to Huawei's own breakthrough in the ERP field, the ERP industry itself has also entered the golden age of domestic substitution.
ERP (Enterprise Resource Planning) is a class of enterprise software used to manage procurement, project management, risk management and compliance, supply chain operations, and many other aspects of an enterprise.
According to the Prospective Economist data, the size of China's ERP market in 2021 will be 38.5 billion yuan, and if we assume that 50% of it is a high-end ERP market, the domestic high-end ERP market size will be 19.3 billion yuan. Considering the average replacement cycle of ERP software of 5-8 years, the stock of domestic high-end ERP replacement market is 96.5-154.4 billion yuan. Historically, China's high-end ERP market was mainly occupied by SAP, Oracle and other foreign manufacturers, and Oracle has gradually withdrawn from the Chinese market this year, and in the context of the localization of information innovation, ERP domestic replacement space is broad.
The domestic high-end ERP replacement market space is 100 billion level. At present, domestic ERP manufacturers are actively polishing products and building ecology, and are expected to share a piece of the pie in the large market of domestic substitution. Especially after the rise of domestic technology giants such as Ali and Baidu, Oracle began to decline.
Since 2019, Oracle China's China branch has begun to massively lay off Chinese employees, from the bottom to the management and even the R&D department. Due to the sharp reduction of the team, Oracle's business in Chinese mainland is also gradually shrinking, or even slumping, and ERP, as Oracle's once fist product, the market share left after its withdrawal has naturally become the target of many domestic ERP companies such as Yonyou and Kingdee.
At the same time, ERP is an important part of information creation software, supporting and running the core data of enterprises, which is directly related to national security and enterprise security.
Since 2022, the government has clearly required central state-owned enterprises to complete the localization of non-autonomous and controllable ERP within a limited time. On March 3, 2023, the State-owned Assets Supervision and Administration Commission (SASAC) once again issued the "State-owned Enterprises Benchmarking World-class Enterprise Value Creation Action", which will further strengthen the rhythm of central state-owned enterprises in enterprise informatization construction and provide a good living environment for the growth of domestic ERP enterprises.
The "14th Five-Year Plan" for the development of the digital economy also puts forward the goal of 10% of the added value of the core industries of the digital economy in 2025, while fully promoting the development of ERP, accounting and other informatization, which also provides impetus for the acceleration of ERP domestic substitution. In fact, after years of accumulation, the domestic ERP market has incubated three giants: Yonyou, Kingdee and Inspur, of which Yonyou Network is the world's leading provider of enterprise cloud services and software, serving enterprise digital intelligence transformation and business innovation by building and operating the world's leading business innovation platform - Yonyou BIP;
Kingdee International has products such as Cloud Sky, Starry Sky, Xinghan, etc., deeply cultivated in the SME market for many years, with its market position, Kingdee ecosystem has covered more than 5,000 partners, Kingdee and strategic partners in platform joint research, product integration and ecological reciprocity and other aspects of in-depth cooperation.
With the optimization of the corresponding domestic supply pattern, the possibility of clearing the products of some cross-border manufacturers is expected to establish an ecological pattern of third-party manufacturers with their own professional division of labor, and the domestic alternative space in the high-end ERP market can be expected, which is also the ERP segment track of MetaERP positioning.
Opportunities and challenges of ERP localization
In the past 30 years, it is an indisputable fact that Chinese enterprise ERP systems rely on foreign products. From the national strategic level, accelerate the breakthrough of key core technologies in the information field, accelerate the promotion of domestic independent and controllable replacement plans, build a safe and controllable information technology system, enhance security assurance capabilities, and put "ERP localization" on the agenda.
ERP replacement is not an easy task, and its industry technology has formed a huge industrial chain after decades of development.
At present, the ERP software industry chain can be divided into upstream, middle and downstream, of which the upstream includes the development of general software and the manufacture of related hardware, software development mainly includes operating systems, databases, middleware and development tools, etc., hardware equipment is mainly servers, storage systems, etc.; The midstream of the ERP software industry chain is an ERP software supplier, mainly providing system consulting and trial, software installation, daily operation and maintenance, after-sales service and other links; The downstream of the ERP software industry chain covers various fields.
From the perspective of the proportion of downstream market demand structure, at present, the application of mainland ERP software is mainly concentrated in the manufacturing industry, and the others are the circulation industry, the construction industry, the power industry, the transportation industry, the petrochemical industry and so on. However, compared with overseas head manufacturers, domestic ERP manufacturers started late, and the technical level and product capabilities of domestic high-end ERP software are still far from overseas giants. Some domestic enterprises will use domestic ERP software in the early stage, but after developing to a certain scale, because domestic software is difficult to support the business needs of enterprises, domestic enterprises will replace domestic ERP software with overseas software, and SAP and Oracle once occupied more than half of the ERP market share in the mainland.
Of course, localization can not be achieved overnight, the previous China Software Industry Association Financial and Enterprise Management Software Branch and Haipi Research jointly launched the white paper "Localization Path of Large Information System" clearly pointed out that the complete localization of information system can be divided into three stages: ERP system, peripheral application software replacement stage; Replacement stage of key business systems, industry application software, and industrial software; Overall localization of information systems.
However, due to the blockade of core technologies, the lack of independent technology and agile and efficient development platforms, the wide range of system research and development, many industries, and tight time, the problems that Huawei once faced are a microcosm of domestic software.
It's not easy, but it's promising
According to incomplete statistics, more than 600 Chinese companies and institutions have been included in the so-called "entity list" of the United States. Software development tools for programmers to write code, EDA software for chip design, and simulation teaching software for universities must all find alternatives.
Since December last year, Huawei has released 11 software and hardware development tools and services, and Huawei's own product line research and development has switched to its own tools. It has built a set of software development production lines covering the whole process and all links of software development, and formed a one-stop, full-process, safe and reliable operation platform.
Under pressure, Huawei has forged a path of independent innovation, although it is not easy, but it is expected!
Some of Huawei's publicly released software tools
On December 7, 2022, HUAWEI CLOUD officially released CodeArts Req.
·On January 5, 2023, HUAWEI CLOUD officially released CodeArts TestPlan, a self-developed one-stop test management platform.
On January 12, 2023, HUAWEI CLOUD officially released CodeArts Check.
On February 14, 2023, HUAWEI CLOUD released CodeArts Build, a distributed compilation and build system.
On February 16, 2023, HUAWEI CLOUD released CodeArts IDE Online.
On February 20, 2023, HUAWEI CLOUD released CodeArts Repo, a code hosting service.
On February 23, 2023, HUAWEI CLOUD CodeArts Artifact Artifact Warehouse Service was officially launched.
On February 27, 2023, HUAWEI CLOUD released CodeArts Pipeline, a pipeline service.
On February 27, 2023, HUAWEI CLOUD released CodeArts Deploy, a deployment service.