Free is "poison"-"China IC Micro column" 2016.5.24

Two days ago, the friend Circle saw a cloud computing project open tender, a company won the bid for 0 yuan, and then other companies to initiate litigation, complaints of this tender non-compliance and so on. Although there are few cases in the business world, this is not a lone example of business, at least I have heard.

Today, "free" big line, many people see "free" as a magic weapon, often through the "free" to subvert a traditional industry, such as the most well-known IT sector case is Qihoo 360 through the anti-virus software free, thereby subverting the traditional anti-virus software market, so that the traditional anti-virus software overlord Jinshan software sunset. Not to mention the popularity of Chinese internet thinking in the past few years, but also the "free" to the extreme. The emerging entrepreneurial new sharp is strangling the traditional players in various industries, including: catering, entertainment, car wash, taxi, car rental, etc., it seems that we want to "free" to the extreme, burning the huge capital of investors, the oath of the traditional industry leader one by one to dismount, just to put the wool on the pig, and then said this is a new The sheep that can climb the tree ...

The slogan "Public Entrepreneurship and innovation", put forward at the September 2014 Summer Davos forum, is like a stimulant that has pushed China's business model innovation to its climax. "Entrepreneurship, innovation" has become the most resounding horn on the land of China. But throughout the past year or so, we have seen a lot of entrepreneurship, innovation basically stay in the business model, and the most sought-after business model innovation is "free." Through the involvement of venture capital, the use of "free" strategy to start strangling all opponents, regardless of emerging opponents, or traditional opponents, as long as the last "left home" (the last surviving player) is the victory, and then seems to be able to do it!

In the hope of this beautiful myth, how can we not think about the free toxicity?

First of all, free is the game of capital, no huge capital involved, there is no free product or service is born. But the nature of capital to profit, it must let "free" is only temporary bait. Or is playing "wool out of the pig" game, looks very good, may be the traditional business environment is quench thirst, even lead to the phenomenon of bad currency expulsion of good currency. For example: Qihoo 360 just start free, everyone applauded, but go to today, we found this is a free nightmare, although free, but other rogue behavior everywhere, Qihoo 360 has become widely criticized by the industry a business. Again such as recently in the cusp of "degree Niang", is also playing the pretence of free, because the death of Wei Zesi caused the whole society's crusade. It seems that Baidu provides services for free, but the other interests of the backstage drive the business to abandon conscience and blindly profit, thus resulting in horrible disaster.

Second, how is the service guaranteed after free? As seen above in the cloud project bidding, although the product is free, the next service how to ensure it? Enterprises can not live at a loss, even if the enterprise itself does not make money, but also to support so many employees ah, otherwise this enterprise can not continue. For the cloud project, if only to buy a product, the production of enterprises after half a year after the collapse of the project to buy products can only be discontinued. Enterprise-class products without services, especially cloud products need a lot of integration and custom development, how can enterprises use it themselves?

Again, there is no investment in product development for free, and this company or product cannot survive. Redhat is the product free, service charge mode, thus stand out, become the biggest winner in the open source market, the current annual turnover has reached 2 billion U.S. dollars. Only reasonable profits, can make the enterprise money into product development and innovation, customers can have the future.

In fact, many people today based on the free business model innovation of the start-up companies have died, a lot of "Internet +" concept of innovation, all hope that through the early free promotion to lock a number of customers, and then deep digging these customer value, so as to achieve profitability. But these so-called "Internet +" enterprises to carry out a large area, a large number of human flesh promotion, in fact, has violated the "Internet +" the original intention. This kind of enterprise only wears "the Internet +" The cloak, does the qishidaoming dream, finally becomes "the Internet-" The model and dies, such example is a plethora of examples ...

Any business that does not aim to make money is bullying, but the business cannot be born for money alone. No line of people scary, no bottom line of the enterprise more terrible. In fact, only a reasonable profit to ensure the sustainable development of enterprises, only the bottom line of enterprises to win the continued respect of customers. Do not fall into the "free" trap and can't climb out, such a business can not have the future.

Finally, I would like to ask you, if there is a reasonable charge of the online video audio content, or a variety of software, and to ensure quality, you will buy it? Whether you buy or not, at least I will buy, I do not want to save one hundred or two hundred yuan, and spend so much time. At the same time also want to help domestic similar entrepreneurial companies can succeed, double benefit, he le it?

This article is from the "China Yunmeng" blog, please be sure to keep this source http://virtualman.blog.51cto.com/200540/1782873

Free is "poison"-"China IC Micro column" 2016.5.24