Chen says grand strategic transition has been a significant preparation for cloud computing

From Shanda recently released in the second quarter of the 2011 financial results can be seen in the restructuring of the adjustment is facing a higher revenue and net profit lower situation. In this respect, the industry has different views.

Recently, the Grand CEO Chen to Q2 earnings to interpret. Chen said that the company did not do a good job in advertising, will develop new advertising platform to enhance profitability, but also revealed the "Grand Cloud" of the current situation, to prepare heavily for cloud computing.

Chen is a good dream-making person, the transformation of the grand can borrow cloud computing again to achieve a "legend" is the focus of the industry's attention.

Revenue and profit rise and fall coexist

According to the Royal network in the second quarter earnings, the current quarter revenue of 264.2 million U.S. dollars, up from the previous quarter growth of 5%, an increase of 26%, of which Shanda game revenue Q2 revenue of 204 million U.S. dollars, the chain growth of 5%, year-on-year growth of 19%, accounting for the total income of 77%.

Grand second quarter total net revenue of the chain growth, mainly thanks to Shanda Games and Shanda online revenue chain growth. Shanda Two quarterly revenue to record a new high in the Internet enterprises generally depressed market environment, Shanda can upstream, analysts have expressed optimistic that the transition results began to appear.

But the net profit of Shanda's network plunged in the second quarter. Financial results showed that the net profit of the grand Net is only 1.4 million U.S. dollars, down 95% year-on-year.

Analysis, this is mainly by the 酷6网 drag. It is reported that Cool 6 in the second quarter of the total revenue of 4 million U.S. dollars, but net loss of 21.6 million U.S. dollars, the year-on-year expansion of 39.4%, the chain expansion of 98.2%. In fact, Cool 6 has 12 consecutive quarterly losses, cool 6 no matter how big the funding gap, all have to pay by the grand. This shows that 酷6网 to some extent dragged a grand hind legs.

In addition, the recent listing of the blocked Shanda literature is also a continuous loss. It is understood that the second quarter of Shanda literature net loss of 10.5 million, 2010 the same period losses 6.87 million, 2011 first quarter loss 3.69 million. This also brings the financial pressure to the Shanda network.

Sheng faces higher revenues and lower net profits. Faced with the decline in Q2 earnings, and in the next few quarters, Shanda may still face the pressure of profit margins, the grand high-level performance seems to be more calm than we think.

Grand CEO Chen is quite confident in his own planning and construction of the interactive entertainment empire, he said, believes that the company's new products and services in strategic initiatives and input, will help Shanda in the ever-changing internet industry to better grasp the opportunity to recast the development of Chinese cultural industry blueprint, Made great strides in building the world's leading interactive entertainment group.

Long-term layout industry chain

Shanda's Q2 earnings show that, in addition to the games, the traditional business outside the line, its new business revenue growth of 53% year-on-year, accounting for total net revenue of 24%, higher than the same period last year 19%. This shows that Shanda's e-books, network video, wireless services and social games and other new business products have a strong momentum of development, the growth of its new business has played a very important role in the grand revenue.

Shanda started with online games, and has become the leading player in China's gaming industry by "legends". Today, Shanda is being actively transformed by traditional gaming companies into interactive entertainment and social multimedia enterprises.

Grand CEO Chen Tianqiao, is a good dream-making person. It is understood that Shanda as early as in 2004 to complete the "box" from the hardware, software to the content of the take-all. Chen Tianqiao Imagine: the content on the Internet, including online games, news resources, video, film and television, can be through the "grand box" into the living room. The box plan dies, Chen and Disney 2.0来 to prepare their own beautiful dream. Shanda is the long-term layout of the industrial chain.

In his chess game, many areas at the same time to attack the board, its involvement in literature, film, music, video, games five major areas to build a full business situation.

In recent years, Shanda Network has expanded from its core business network game to literature, and extended to music and film and tourism. Recently, the grand and High-profile announced to enter the E-commerce industry, threatened to "within one year and Taobao share the market, three years after the listing." In addition, the grand in the two quarter began to force the cloud computing basic services market, intends to learn from Amazon, to provide corporate users with cloud host, cloud storage, digital distribution and other products.

In the transformation period of the Grand network is the long-term layout of the industrial chain, and the whole interactive entertainment industry chain layout is increasingly perfect.

Heavily preparing for cloud computing

Compared to grand always "like" to get together with the Red Sea, more than two quarters began to exert less competitors in the cloud computing base services market.

Chen Tianqiao in the Q2 analyst conference Call, said that the grand need to build cloud computing platform. Chen said, Shanda as a content integrator and distributor, has a game, literature, video, wireless and other diversified business structure, the sale of products is content, shanda necessary to build their own collection and logistics system. The advent of cloud computing, so that these digital products can be stored in digital form on the server, through the data pipeline transmission to the user's computer inside, so that users safe, fast to enjoy the content of Shanda. In this sense, cloud computing is equivalent to a grand platform of the logistics system, to distribute grand content to users, provide convenient payment methods, management and maintenance of user data.

After the recent start of the survey, cloud computing received more than expected applications and enthusiastic feedback. This makes Chen more confident that he will be more active in preparing for the cloud market. It is reported that Shanda has been in the "Grand Cloud" project investment of about 100 million yuan, this year will be another 100 million yuan, has built a new data center, the next 2-3 years will be additional investment of 500 million yuan.

At present, Shanda from the upstream content supply to the downstream payment function is gradually improved, and can be based on a number of market layout platform to attract users. Shanda's whole business development has achieved certain results, catch, not only won the industry chain up and down, but also has a strong rear-hair forces.

However, in Grand Connaught Big Dream Space, if the whole business development grasp is not good, it may be because of greed, inadequate integration and "dystocia". The same is true in building a cloud-wide product chain, and how to integrate multiple resources is a difficult problem.

In short, the grand industrial chain in the industry's development prospects have been very obvious. But to take all the industrial chain, with the Internet radiation to users of all aspects of life, better operation of the Empire, or it is now and in the future for some time the most important thing.

(Responsible editor: Lu Guang)