The revenue decreased by 30 % and continuous losses. Where is the next growth point?

Text/Yang Jianyong

Since Amazon released the world's first cloud computing service in 2006, it officially ushered in the era of cloud computing. As a result, traditional IT structures have gradually changed to cloud, and the cloud service market has shown rapid development. It will benefit. Among them, You is engraved as one of the main players on the domestic public cloud track. Due to the first aura of cloud computing, the scenery at the beginning of the market is infinitely popular, and it is favored by capital. The market value is up to 53.2 billion yuan. Unfortunately, after a short time, it has shocked down all the way. Today, the market value is 5.3 billion yuan, which is 47.9 billion yuan compared with the high level, and the market value has shrunk by 90 %, which is regrettable.

The capital market continues to decline, which has both market environment factors, but also its own business capabilities. After the premium was launched, the performance began to change and fell into a dilemma of losses. Data show that in 2017, 2018, and 2019, it made a profit of 70.98 million, 77.21 million, and 21.19 million, respectively. Different from the profit before listing, the continuous profit changes with the face after listing, and losses have increased year by year. In 2020 and 2021, they lost 340 million yuan and 630 million yuan, respectively. Losses this year narrowed, and the losses in the first half of 2022 were 260 million yuan.

Not only is it excellent, but also domestic small and small cloud manufacturers such as Jinshan Cloud, Qingyun Technology, etc. also deeply trapped in the dilemma of losses. In the second quarter of 2022, Jinshan Cloud's net loss was 810 million yuan, while the same period of 2021 was 220 million yuan, and the loss increased by 590 million yuan. ; In the first half of 2022, Qingyun Technology lost 153.5 million yuan. In 2020 and 2021, the losses were 163 million yuan and 283 million yuan, respectively. It should be pointed out that on the public cloud race, the cloud giant is difficult to achieve profitability. If small and medium -sized cloud manufacturers want to achieve profitability in the highly competitive public cloud market, it is also difficult to go to the sky.

Faced with the increasingly competitive cloud market, the giants have gradually begun to pursue profitable growth, and non -revenue growth, including Tencent Cloud focusing on the growth of market share to focusing on business profitability. Among the cloud giants in our country, only Alibaba Cloud has made profit after adjustment. In fiscal 2022, Alibaba Cloud EBITA's profit was 1.146 billion yuan, which is the first time that Alibaba Cloud has achieved annual profit. Yang Jianyong, a senior IoT consultant, said: "For cloud manufacturers, it is difficult to achieve a profit and loss balance before forming a scale. Cloud manufacturers who can achieve profitability with the advantages of scale are rare. Technology), Microsoft Smart Cloud and Alibaba Cloud have achieved profitability. "

On the whole, cloud computing is a heavy asset industry that needs to invest a lot of funds and other resources to build huge data centers around the world; and it is necessary to invest a large amount of funds for innovation to provide the Internet of Things, artificial intelligence, and data for the thousands of industries. Analyze the cloud service capabilities. The huge investment is extremely high. And the market is mainly divided by giants. During the market, small and medium -sized players have worried about profitability. Small and small cloud manufacturers who have been in a state of losing money are not optimistic.

It is worth mentioning that, under the situation of increasing losses year by year by year, the revenue also faces the dilemma of growth. In the first half of 2022, the revenue was 30%of the revenue of 1.046 billion yuan. In the author's opinion, although cloud services have maintained a strong growth trend in the past year, the Matthew effect of this market is obvious. According to data from the Canalys agency, the four cloud giants of Alibaba Cloud, Huawei Cloud, Tencent Cloud, and Baidu Smart Cloud occupy nearly 80 % of the domestic market share in China. It can be seen that my country's cloud service market shows a stronger pattern of strong people.

So, for the eccentricity of small and medium -sized cloud manufacturers, it is extremely difficult to fight for the market in the hands of giants. In fact, the core competition is the price in the crowded public cloud market. However, small and medium -sized cloud manufacturers have weak market competition, which leads to a slowdown in revenue speed and decline. Excellent is prompted in the risk of intensified market competition. The main product price has shown a decline in the overall decline since 2018, and the price reduction is large. It also pointed out that the competition in the future cloud computing market may still be fierce. The possibility of competitive price reduction is to achieve a short -term market share. In the face of fierce market competition, there may be a situation of continuous price reduction of products in the next few years.

Specifically, the revenue of the public cloud carving achieved a steady growth. The edge cloud (mainly cloud distribution) revenue of 131 million yuan, 665 million yuan in the same period last year, a decrease of 80%in the same period; It is mainly affected by the project cycle and epidemic. Among several major business segments, the mixed cloud business maintained a rapid growth rate, with revenue of 272 million yuan, a year -on -year increase of 34%. At the performance briefing meeting, You Carved pointed out that the public cloud industry has changed significantly, the Internet industry has challenged, and the opportunity for digital transformation of new industries to increase is increasing, such as AI, biopharmaceuticals, chips, new energy, etc. Due to security due to safety due to security The problem cannot accept the public cloud, so the mixed cloud is used.

In the cloud service track, in the face of digitalization for cloud services, for cloud manufacturers, not only LaaS infrastructure capabilities, but also PAAS and SaaS service capabilities such as the Internet of Things, artificial intelligence, and data analysis. Transformation and upgrading injected innovative vitality. Excellent has continuously increased its expansion of private cloud, mixed clouds and other businesses, and has also strengthened investment in emerging businesses such as big data, AI, and the Internet of Things. From the perspective of hybrid cloud growth, it is the second pole of performance growth. In terms of mixed clouds, mixed clouds have both the core advantages of public cloud and private cloud, which can not only help users unify multiple IT systems and resources; at the same time, they can meet the rapid development of 5G and the Internet of Things. Users to edge resource -to -edge resources can be met. Users to marginal resources on the edge -ending resources can Management needs support the construction of distributed clouds. The flexibility of mixed clouds can better meet the market development trend and users' needs for IT infrastructure security, controlling operation and maintenance costs, and business flexible expansion.

Finally, with the advancement of global digitalization and intelligence, cloud computing has become an important infrastructure in the world. It is ubiquitous. The cloud leads the global IT pattern and drives the global cloud computing industry to show a vigorous development. It is believed that all circles will continue to increase digital transformation, and the cloud service market will be further released. IDC expects that by 2026, the scale of China's public cloud service market will reach US $ 105.76 billion (about 700 billion yuan).

Players on this track, its cloud service sector is expected to further grow and harvest the intelligent dividend of the industry.

Yang Jianyong, a Forbes Chinese writer, is committed to in -depth interpretation of cutting -edge technologies such as the Internet of Things, cloud services and artificial intelligence.

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