According to Huawei's official news, on April 20, Huawei held the "MetaERP Commendation Oath Conference" with the theme of "Heroes Crossing the Dadu River", announcing the completion of independent and controllable MetaERP research and development and the replacement of the old ERP system. In recognition of the teams and individuals who made significant contributions to this project, Huawei held the commendation meeting at the Dongguan Xiliu Backpo Village Park.
It is reported that Yonyou, Kingdee, Wuhan Tianyu Software, Qianxin, Beijing Yuannian Technology, Chinasoft International, iSoftStone, Guangzhou Saiyi Information, Shanghai Hande Information and other manufacturers participated in the event as partner teams.
Huawei presented awards to MetaERP partners
Three years after the interruption of supply, the self-developed MetaERP system achieved a comprehensive replacement
It is reported that ERP is the most critical and important enterprise-level IT application. Since the introduction of MRP II in 1996 and the continuous iterative upgrade of the ERP version, ERP has supported Huawei's rapid development for more than 20 years, hundreds of billions of annual output value services, and efficient business operations in more than 170 countries around the world.
In May 2019, Huawei was included in the "Entity List" by the United States, and after the United States announced sanctions, suppliers soon notified that they would cut off supply to Huawei, because the old ERP system is equivalent to Huawei's "central nervous system", supporting the operation of Huawei's entire business, once it cannot be operated, the company may be paralyzed. In this regard, Huawei decided to start replacing the old ERP system and started the development of independent and controllable MetaERP system.
According to Huajing Industry Research Institute, the global ERP software market will reach US$66.4 billion in 2026, and the growth rate of the mainland ERP software market has remained above 10% in recent years, and it is expected to reach RMB68.2 billion by 2027. Northeast Securities Research Report shows that at present, domestic manufacturers occupy nearly 80% of the domestic ERP market, of which Yonyou (40%), Inspur (20%), Kingdee (18%) ranked in the top three. But in the ERP high-end market, SAP and Oracle together account for 50%.
From the perspective of patents, as of August 2021, the top 10 applicants for the number of patent applications in the global ERP software industry are: Oracle, SAP, State Grid Corporation, Splank Corporation, Honeywell International Company, Chengdu Morning Glory Information Technology Co., Ltd., Shandong Inspur Soft Information Technology Co., Ltd., Essensun Global Solutions Co., Ltd., Samsung Electronics Co., Ltd., Kingdee Software (China) Co., Ltd. Among them, Oracle International has the largest number of ERP software patent applications, with 214. SAP AG ranked second with more than 200 patent applications for ERP software.
In general, although domestic ERP has developed rapidly in recent years, it still needs to be made efforts by domestic manufacturers in terms of high-end market and technology patents.
In this context, as the most extensive and complex project in Huawei's history, Huawei has invested thousands of people in self-developed ERP in the past three years of supply cuts, worked with industry partners and ecosystem partners to overcome difficulties, successfully developed a future-oriented ultra-large-scale cloud-native MetaERP, and successfully completed the replacement of the old ERP system. At present, MetaERP has covered 100% of Huawei's business scenarios and 80% of its business volume, and has experienced the test of monthly, quarterly, and annual settlements, achieving zero failures, zero latency, and zero account adjustment.
△Tao Jingwen, Director of Huawei and President of Quality and Process IT Dept
"In the face of the interruption of supply and service of enterprise operation and management core systems, including ERP, we can not only create, but also exchange, use well, and now we can finally announce that we have broken through the blockade and we have survived!" Tao Jingwen, Director of Huawei and President of Quality and Process IT Dept, said proudly at the meeting.
According to reports, Huawei MetaERP is based on Huawei's Euler operating system, GaussDB and other root technologies, and cooperates with many partners to adopt advanced technologies such as cloud native architecture, metadata multi-lease architecture, and real-time intelligent technology, which not only realizes full-stack autonomy and control, but also effectively improves business efficiency and operational quality.
Huawei said that it will continue to focus on the goals of "simplified architecture, extremely high quality, extremely low cost, and excellent experience", and work with partners to build independent and controllable, more efficient and secure enterprise core business systems in ERP and PLM fields.
Partnering with partners can prosper
At Huawei's internal "problem solving" event in March this year, Ren Zhengfei, founder and president of Huawei, revealed, "In April this year, Huawei's MetaERP will swear that it will completely use its own operating system, database, compiler, and language... to make its own management system MetaERP software." MetaERP has also undergone the practical test of the company's global departments, and has passed the test of annual settlement of the company's general ledger. Our company's account is complex in the industry and has successfully proven that MetaERP is a sure way to roll out. Many design tools have also been exposed to HUAWEI CLOUD for social applications, gradually overcoming the embarrassment of supply cuts. ”
At that time, this news triggered the market's speculation about "Huawei's entry into the ERP market", which directly led to the collapse of domestic ERP-related concept stocks on March 20, Yonyou Network fell to the limit, and Kingdee International fell by 18.77%.
Subsequently, Yonyou Network responded that the news had little impact and that the company was currently operating normally. ERP is not a simple tool software, involving a complete set of links such as design process, experience extraction and implementation delivery. Whether it is a domestic or foreign ERP company, if you want to form a certain market scale, it is after decades of development. Huawei is not the first company in China to enter ERP, which fully demonstrates the market value of ERP.
Kingdee International also said that the company is a deep strategic partner of Huawei, Huawei has adopted Kingdee's firmament platform, and Huawei's global human resources system is jointly built by Kingdee and Huawei. Huawei will hold a MetaERP conference in April, and the company is also invited to participate.
At the "MetaERP Commendation Oath Conference", Ren Zhengfei took the initiative to mention that Huawei's announcement of MetaERP in March brought stock price fluctuations to partners including Yonyou and Kingdee.
"The stock price fell and everyone was taken aback. I want to take a photo with you today, hurry up and send the photo, I believe that everyone's stock price should come up immediately. Ren Zhengfei said with a smile.
Ren Zhengfeijin said: "To thank partners, we are on the same trench, we think that this year's success is inseparable from you, the future development is more related to you, today we are still lagging behind in software, but is it that one day we will become strong?!" I think we are working together with our partners, we are strengthening cooperation, and we are working together for the security of the country. ”
Meng Wanzhou, Huawei's Rotating Chairman and CFO, also said, "Every leap in technology requires not only the accumulation of ingenuity, but also the spirit of openness to promote the leap in cognition. The construction of MetaERP requires the joint investment of partners. Only openness can lead to innovation, and only cooperation can prosper. ”
In the past two years, Huawei MetaERP will only do two customers
For the rumors that Huawei is going to enter the ERP market, the Shanghai Securities News previously quoted relevant Huawei people as responding that Huawei's MetaERP management system is only for internal use, and "entering the ERP market" is a misreading.
However, Xinzhixun found at that time that Huawei's recruitment of "ERP solution sales consultants" had already appeared on the third-party recruitment website, and the release time was October 11, 2022. This also means that Huawei is already preparing to enter the ERP market.
According to Digital Intelligence Frontline, at the MetaERP commendation conference, Ren Zhengfei revealed that Huawei's MetaERP will only do two customers in the past two years, but it did not disclose the name of the customer. This also means that MetaERP will not have a particularly large impact on the ERP market in the past two years.
But what about two years later? Will Huawei gradually implement self-developed substitution and eventually fully enter the ERP market, where partners provide assistance? This seems to be somewhat similar to the market's doubts about the "Huawei does not build cars, valid for 5 years" decision.
Editor: Xinzhixun - Ronin Sword