Chapter 207

Alibaba cloud in China is so powerful, not to mention Amazon cloud, the earliest start in foreign countries. In 2018, Amazon cloud's annual revenue was more than US $10 billion and its annual profit was more than US $3 billion. Similarly, there was no sign of slowdown in the growth rate, and with the advent of 5g era, artificial intelligence and Internet of things, Its development space and imagination space are still huge.

Many Internet users in China, including Tencent President Ma and google president Li, still don't understand cloud computing. Fang Zhe is reborn, but he is very clear about the value of cloud computing. Therefore, Fang Zhe and Huizhong must do cloud computing. However, due to Huizhong's current financial strength, it is impossible for Huizhong to independently invest in building a data center to do cloud computing.

So in recent days, Fang Zhe, Zheng Siwen and Huizhong's senior management have discussed and worked out several schemes. First, financing!

If you don't have money to develop, you can raise money and invest. This is the most common way to raise money in the development of Internet companies. From angel to ABCDE or even F, the larger the volume, the more you can get. In the previous life, Alibaba's listing alone raised more than $20 billion. It is also because of this huge amount of money that Alibaba expanded everywhere after listing, It has entered a new round of rapid development and internationalization process.

However, this common fund-raising method before the listing of Internet companies was only used as a last resort in front of Huizhong shareholders such as Fang Zhe and Zheng Siwen. This is not to say that Fang zhe or Zheng Siwen are unwilling to finance and lower their shares. Compared with the rapid development of the company, it is also acceptable to appropriately dilute everyone's shares.

The reason why they regard financing as a last resort is that at this stage, no matter what level of financing they seek, they will very underestimate the real potential value of Huizhong. First, Huizhong is a game company in the outside world and in the market, rather than an Internet company with unlimited development potential and core business like Tencent Baidu Alibaba.

Because of its unstable profits and limited growth space, game companies have never been overvalued in the capital market, and the P / E ratio has always been very low.

According to the estimation of Huizhong's current monthly profit of 200 million yuan and annual profit of 2.4 billion yuan, the valuation of more than $3 billion is only 10 times the P / E ratio. What's more, it's a cold winter of economic crisis capital. All funds spend the winter in their money bags. The P / E ratio of game companies in the stock market has generally fallen below 5. Now they are financing, The capital market gives Huizhong a full valuation. It's good to have $2 billion.

If you give up 10-20% of your shares, you can get $20-40 million at most and build a data center at most. Fang Zhe and Zheng Siwen don't want to let so many shares of Huizhong out for such a little money!

Even if they raise funds in the future, they also hope that when businesses with huge growth potential and imagination such as mobile chat software become Huizhong's core business, and the financial market is better, there is more money and less meat, so this scheme is only regarded by them as a last resort.

The second scheme is that Zheng Siwen thinks it can be considered, but Fang zhe thinks it is not a reliable scheme. That is to build a data center with others. This kind of case is not uncommon in previous lives. Many companies that are not as rich and powerful as bat, and several partners engage in cloud business. It is also a common method to make money and contribute effectively.

If the time is pushed back for seven or eight years, maybe Fang zhe will consider this method. But now, let alone the information security of mobile chat software, few domestic companies are optimistic about the development potential of cloud computing. Are there any people who are willing to pay and can't make money in a few years? It's strange not to break up with Huizhong! In foreign countries, large companies are basically doing this, and people don't need money to cooperate with Huizhong.

Therefore, the second scheme is ranked second, and the first one is the third scheme, which is also the scheme that Huizhong first considers and investigates. Once the investigation is passed and the implementation feasibility is high, Fang Zhe and Huizhong executives intend to adopt this scheme.

Speaking of the third scheme, Li Yifei proposed it. At that time, Fang zhe was popularizing cloud computing to Huizhong senior management, explaining its potential and importance, and well told them the relationship and difference between cloud computing and traditional IDC data center.

There's no way. This is also the reason why most Internet people in China didn't pay much attention to cloud computing when it first came out, because cloud computing was born out of the traditional IDC data center. Without in-depth understanding, it seems that it is no different from the traditional IDC data center, just like what president Li of Baidu said about cloud computing at the IT summit in Shenzhen early next year "Old wine in new bottles is nothing new!"

This is probably when Fang zhe just started to introduce cloud computing to Huizhong's senior executives. They had little different ideas from google president Li. Fang zhe spent nearly ten years in the Internet industry in his previous life and has been paying attention to the development of cloud computing. A few days ago, he made up a missed lesson and made a good study of the two through various wall checking materials.

Therefore, the explanations on the three service modes of IAAs, PAAS and SaaS, from physical computer room hosting to elastic computing services, also gave Huizhong's senior management a new understanding and understanding of cloud computing. That is, in this case, Li Yifei inadvertently said:

"Since cloud computing is born out of the traditional IDC data center, can we consider borrowing chicken to lay eggs, renting or acquiring a large-scale traditional IDC data center, transforming it and slowly exploring our own cloud computing business? In this way, the cost should be much cheaper than building a data center from scratch!"

Li Yifei's words directly reminded Fang Zhe. Yes, why do you have to spend so much money to start from scratch? It's OK to buy a data center transformation from the existing traditional IDC manufacturers. In previous lives, with the rise of cloud computing, the business of traditional IDC manufacturers was squeezed, and many IDC manufacturers sought transformation and became cloud service providers, With old equipment assets such as factory buildings and server hosts, the cost of transformation is much cheaper than that of large companies building data centers from scratch!

It's also that Fang Zhe's consideration is too complicated and troublesome. In previous generations, most large companies basically started from scratch. First, they don't need money, and second, they can follow their own requirements in terms of low-level design. However, for Huizhong and Fang Zhe, when the money is not enough, they buy or lease ready-made IDC data center transformation, It has become a very feasible scheme!

After some discussion, Fang Zhe and other senior executives of Huizhong found that the feasibility of this scheme is really high. Even if they build their own data center, it will take them at least one year. If they transform the leased or acquired data center, it will take only two or three months. In this way, they can not only immediately prepare the team to develop their own cloud computing scheme, We can also put more and more large-scale and high-cost businesses on our own cloud as soon as possible to save costs!

"No, you can have this!"

After the meeting, Fang zhe immediately decided to set up a special research team and hire foreign IDC and cloud computing experts to fly to Europe, America and other overseas countries to find local IDC service providers to investigate the matter.

On June 15, after a week of preparation, wechat finally put on the shelves of appstores and Android markets in several major countries and regions around the world. The first test version of wechat was finally launched!