Leverling: Industry is subject to policy delimitation is still unscientific

September, Sohu Second communication salon was held grandly. This time, the Sohu it channel converged a number of well-known experts in the industry, together on telecommunications and the integration of the Internet software issues launched a wisdom exchange. From the Ministry of Information Industry, the State Council Development Research Center, the NDRC, the Beijing Institute of Posts and telecommunications experts, and representatives of China Telecom, Chinese railcom, Huawei, ZTE and other enterprises, together on the application of communications software industry status, unified application software development policy environment, business applications of mobile software opportunities and challenges such topics have been fully discussed. The following is a transcript of the speech by CEO Leverling.

Leverling: At the beginning of the meeting, I listened to Swit's report, some of the bottom of the mind, because today's topic is about communication software, and more is related to communications operators software. With this definition, I have little say. But then, listen, I think there's something to talk about. I have to say how I feel, mainly from two aspects.

First, in today's lecture, many of the mentioned industry, not only the IT industry, but also the software industry, as well as the communications industry, the communications industry is not enough, but also continuously subdivided. Just a few people have said that we have set a lot of "industry", in English can not find, why do we have the industry's preference? is related to our thinking of a planned economy.

We do everything we want to do industry, our management also wants to divide into the industry, so the name of the Ministry of Information Industry has an industry, all want to change industry, but actually now we go to see, the industry has the definition of industry, industry division, just also discussed a lot, in the end how to score.

I'd like to tell you a feeling that when I first approached venture capital and contacted a lot of foreign bank analysts, I found a very important feature that analysts have an annual or quarterly analysis, each of which may have different industry classifications. His analysis report now doesn't see the company I'm analyzing, he's in a Nasdaq-listed company or in a big relationship with me, what kind of new dynamics these companies are in, what kind of new products they have, and when this product comes out, to help analyze what relevance, based on relevance, He thinks such a classification is the most scientific. After the classification, just say what the trend represents, the future development can make a prediction, what kind of trend, and such a trend will affect the entire industrial ecology. This is the analyst's basic analysis method.

This method has a very important idea is that we do analysis, decision-making is always backward industry itself. They think that in the industry, the most active, the most revolutionary, the most able to perceive the future is these enterprises, these companies are really leading the industry to go forward, they are only on the sidelines, and then to predict. Like watching horse racing, we all in happy, which horse run well, which run bad, only the knight knows, the next happy man only on the sidelines to make predictions, this is the analyst analysis method.

In turn, the reports of some governments in the country, or the people who report to the government, wrote a lot of policies, the basic concept is that we first write, or do a lot of predictive analysis, draw a lot of boundaries, to make the box, according to the framework of policy, after the end, the result becomes the industry's people in the head into the policy, not into policy, Many policies are not to be taken. What is the software industry? Now everyone says that they are the software industry. The last time I saw the refrigerator in Jiangsu, he said that I have a large proportion of the software industry here. I said you do the refrigerator how to make software. He said you see I have a microprocessor here, this microprocessor is software, I said the software how to calculate your value? He said with the leader said, this refrigerator without this software is a pile of waste, there is this software, you can sell price. So all the value-added parts are my software value. What is the purpose of his division? Very simply, after the production of the industry, the government will have to refund the tax. And the local government is obviously aware of this nonsense, but open one eye closed one eye, why? Because this is reported up, this is the local political performance, which is very common in the domestic phenomenon. This phenomenon is formulated by the policy box industry to go forward or set the industry, or industry voluntarily to that industry to go to the box. This is completely different from foreign countries, and the primary and secondary relations are completely reversed. This in turn in the end what kind of rationality, what impact, these things to analyze, I said I can see this very interesting phenomenon.

Second, we've been talking about the software industry. Software does not have a fixed pattern, and many are now defining what software is called, and we have talked about a number of them. For example, see the report has been analyzed, the United States has a model of the United States, Europe has a European model, Europe can even be divided into what the French software model, Japan is what mode, India is what mode, China is what mode. Since everyone's software is not the same, our domestic development of what is called software, what is not called software, this definition is not much necessary, embedded called not software, of course called. If we call what form this decision power to the enterprise, the enterprise can make money, natural to this mode turn. For example, people say google,google is not software? I think it's definitely software, but I told Google's people, what's your biggest value in Google? I thought he'd say he was a search technique, he said no, Google's greatest value is that we have created a world's largest parallel computer, parallel computers are assembled by their own PC, but with 300,000, now said to be able to break through 1 million, 1 million PCs of parallel computing array, This is really the core value. I said 100 machines run on software, and he said that all the machinery was bought in supermarkets. In the final analysis depends on the software, but you look at Google's total revenue, just asked if there was a Google payment? I paid for Google and bought their maps. Google's revenue comes from advertising, if it is based on the domestic advertising industry. Now on the internet there is this trend, you do business and your final income of these two completely separate, stripped, business in this industry, but your income may appear in another industry, this time also with the traditional industry division. These are worth studying. In terms of software, such as the original Sina when the earliest thought that the most powerful is the release of software, release system out, sell the publishing system than do the portal more valuable, the portal of our own operations, rather than become software sales. Operating the final revenue into the media, revenue into advertising, so that, in the industry jump several industries. You should look at what the industry is doing now, and do research based on this model, rather than listing a box to jump in.

Finally say a little feeling, talk about policy research, many policies why, I understand, sometimes I as a business or as a consumer, I am very distressed. A very simple concept, such as mobile phone, frankly speaking, I used this mobile phone to buy a parallel, to buy in Hong Kong. Why buy in Hong Kong? Very simple you know, in the domestic licensed because of policy reasons, WiFi was canceled, but WiFi for consumers is very useful, very important, very revolutionary, breakthrough, I used not much, I only used to send and receive e-mail, Internet, and did not use Wifi-for, This is very good for consumers, very important function, the policy is prohibited.

Why is forbidden, I can understand a lot of reasons. One reason is the impact on the profits of operators, another more high-sounding reason is the fear of security, there is also a far-reaching reason for the private WiFi standard for the road, and may even have many reasons, but from consumers for these reasons is not a reason. Policy reasons traditionally there are three interests to balance, countries, groups, individuals, we can say that individuals are more willing to locate consumers, the collective definition is the enterprise, but the enterprise is divided into many kinds, especially now the most sensitive state-owned enterprises, because the state-owned enterprises easily become athletes and referees are a gang, which caused a lot of problems. With the national interest, this is a more sensitive topic, related to policy issues, related to the long-term development of industry issues, related to social stability, and many other aspects, but I think as a state-owned enterprises, state interests, often let our policies become very complete, we want to protect the state-owned enterprises, the protection of state assets, or to encourage competition in the industry, or let consumers feel the greatest interest. There are a lot of policy issues out there. Personally, I understand that the state-owned enterprises also understand the difficulties of the country's policies and understand the individual, but the basis of understanding will cause great pain as a consumer, or as a private enterprise in the industry, or other enterprises. As a state-owned enterprise is also very painful, as a policy formulation is also very painful, but this pain how to solve, I do not know, but also to see the leaders and teachers, you may have better ideas and ideas. That's all I'm saying, just feeling.