East soft profit falls stranded cost Jiren Transformation Cloud computing reservoir crisis

Software outsourcing industry, the highest human cost, high enough to make industry leader Neusoft group profit fell by nearly 1/4. Transforming into cloud computing does not relieve the cost of the company. Neusoft's cloud computing is facing problems, and its products can be put to use for a long time. But the intensive reduction of management and major shareholders has heralded a poor close-up of the company.

Human cost affects profit

Software outsourcing industry, the highest human cost. Over the past year, Neusoft operating costs and management costs have been high.

Neusoft financial results show that the main reason for the decline in the company's net profit is the increase in human costs, as well as research and development, acquisition, marketing and other aspects of investment. Among them, the 2010 earnings show, stranded in the wage increase, neusoft manpower expenditure accounted for its total cost of 40%. 2010 East soft revenue nearly 5 billion yuan, year-on-year growth of nearly 18.5%, net profit of 485 million yuan, but fell 24%.

Jiren, Chairman and CEO of Neusoft Group

Jiren, Chairman and CEO of Neusoft, said that the era of Low-cost software engineers in China was gone and that the industry would increase by more than 10% a year. "There is no hope of survival," he says. "In the next few years, employees will be given a continuous salary increase."

Wages to increase, the cost should be reduced, only from the number of people to start. Jiren said that Neusoft faces three major shifts, from human-scale growth to knowledge-based capital-driven growth, from a technology-centric business model to a customer-value-centric business model, from a China-centric to a global market.

In Jiren's view, these three shifts must be transformed into a key to cloud computing. "Software and information services are not as comparable as they were 10 years ago, 20 years ago, and if you ignore the Internet and cloud computing, there will be no chance." He said Neusoft would be ready, including continued mergers and acquisitions, to deal with this "terrible" big opportunity.

It is said that Jiren and other executives in Neusoft have said they must call cloud computing and Internet of things.

Neusoft Group of Public Relations Planning Minister Yang Xiwen March 28, said in a personal microblog, "#IT领袖峰会 # Neusoft Group Chairman and CEO Dr. Jiren received Phoenix interview. Neusoft launches healthy city plan in some cities in China. PS: Neusoft Health Service Management Solution front-end is the internet of things, the back end is cloud computing. ”

The challenge of the Nuggets cloud

"In the government's support of cloud computing today, the Neusoft layout of cloud computing is taken for granted." Senior IT Observer Xiaodong said. He pointed out that the cloud computing industry is very large, many companies are also follow the bandwagon to do cloud computing, but also can not be fully involved, Neusoft may only do a part of cloud computing, the key is to see where the Neusoft cut.

Jiren said that the new growth momentum will come mainly from automotive electronics, mobile terminals and medical system three major business, reported that the company has been in health services, automotive remote services, location services, such as the expansion of cloud computing business. Jiren said that the growth of China's health care sector is very large, Neusoft is very optimistic about the great potential of China's health care.

The "Hee Kang", a health-care industry that has been launched last year, will push Neusoft from business-to-business to B2B2C to face a huge mass market. This is the Neusoft group "cloud computing" strategy core layout.

As for the results, according to Neusoft, said, "Hee Kang" at present in Shanghai and other national core cities, Hainan and other rural markets, Jiren said, "At present we are working with public hospitals, the future will move towards communities, families." He also revealed that there are already some overseas projects.

However, according to a brokerage rating of the morning meeting, the East soft also exists "Hee-kang business expansion is lower than expected and the increase in human costs, the risk of a decline in profitability."

Role in medical industry users, Peking University's first hospital Information Center Director Ma Jingxiang that the medical industry is not necessarily the best breach of cloud computing.

Ma Jingxiang said that the old three hospitals have adopted his system, the server and database operation has been stable for many years, for security reasons, if not necessary, and even years ago the system is not dare to change. And for some cloud computing such a new technology attempt, at present can only be in the main business in the attempt, the main business is still continuous, stable, security first.

In Ma Jingxiang view, Neusoft in the medical industry nuggets, it is difficult to convince the old hospital in the main business of the system to enable the current cloud computing as the fashion of new technologies, but only to open up new hospital market. "But the choice of the new hospital for the manufacturers will also take market coverage as the main reference." "he said further.

Ma Jingxiang also pointed out that "information island" is an important problem to be solved in hospital informatization, because the hospital attaches great importance to the safety and protection of medical resources, and its barrier is not easy to get through.

In his view, from a microscopic point of view, the medical cloud is not yet ripe, the cloud in the medical industry applications, but also need a process, at least a step-by-step process of practice. The first to apply to the hospital, should or "desktop cloud."

Xiaodong also believes that the actual application of cloud computing is not that fast. He pointed out that the current cloud computing companies are basically a rainy day, due to user input, poor infrastructure and lack of system issues, the real deployment of the cloud has a distance. He predicts that the massive application of cloud computing will take at least 3-5 years to accumulate.

Neusoft Public Health Service solution

Ma Jingxiang admits that the strength of Neusoft's development is a big advantage of its foray into cloud computing. With the passage of time and the improvement of technology, it has great development in the medical industry.

Xiaodong points out that the software outsourcing of the fight, so that the Neusoft has the foundation of SaaS, but the PAAs is a ridge of the East soft. The current mainstream view of the industry is that cloud computing is divided into three levels, namely IaaS, PAAs, and SaaS, that is, architecture as a service, a platform as a service, and software as a service.

Thus, for the East soft, cloud computing as a need to cultivate the project, product line perfection, market development, the user's acceptance, these problems mean that the East soft need a long time to overcome. The process, and undoubtedly also requires expensive human costs.

Jiren said he wanted to continue mergers and acquisitions, which he had previously put on "mergers and acquisitions for East Soft is daily daily work", Xiaodong predicted that neusoft may be through mergers and acquisitions to solve the challenges such as PAAs. According to the IT Business News Network reporter understands, neusoft and Japan Enterprise NEC for cloud computing set up a joint venture. But NEC is also not a "cloud master" in the industry's view.

In addition, mergers and acquisitions can enhance the strength of enterprises, but mergers and acquisitions also allows enterprises to face cost pressures, appropriate mergers and acquisitions, as well as the challenges of integration.

The rewards are still far away and the money is in sight. The East Soft Cloud computing transformation, how exactly solves the cost pressure? The relevant person in charge of the company did not answer the deadline.

The president led a huge reduction

Neusoft seems to have a full confidence in cloud computing and does not see PAAs as an obstacle to its soaring cloud.

Neusoft Senior Vice President Lu Zhaoxia in an interview, Neusoft, a branch of Neusoft Information Technology Services Co., Ltd., specializing in the construction of data centers, currently in Dalian, Shenyang, Chengdu, Nanhai and other East soft base has data centers. So Neusoft has a good foundation for building the physical platform of the cloud.

Overall, Lu Zhaoxia said, Neusoft already has the ability to build a cloud-computing base platform and application platform. After the construction of the physical structure, Neusoft's most important task now is to "cloud" each product line and business into real virtual computing, layout according to virtualization strategy, and build extensible application architecture.

However, Lu Zhaoxia's confidence, the "cloud computing" concept in the East soft, and more than the vice president level of senior executives to reduce the company's shares of tens of thousands of dollars of behavior, forming a subtle contrast.

According to the SSE Information disclosure data, July 22, Neusoft Group President Wang Yong 11.20 yuan at the price of selling the company shares 724060 shares. Subsequently, the Neusoft group fell with the city.

July 26, Neusoft Group also boarded the major trading list, there are 3 total of more than 1 million shares of the deal, the transaction price of 10.90 yuan. Analysis of the scattered and intensive reduction, it is likely to be a large shareholder's handwriting.

At the same time, the shareholders through a large volume of transactions, while Wang Yong Neusoft Group also has 2 senior executives also through the two-tier market reduction. Data show that Neusoft senior vice president and financial operations Officer Zhang, senior vice president and chief Operating Officer Chen Ximin and Wang Yong recently took turns to reduce the company's shares, three people divided four times total reduction of nearly 1.17 million shares, set now about 13.2 million yuan.

Although the message surface has a "cloud computing" concept support, but management and large shareholders so intensive reduction, it brought to the East soft share price of the actual pressure can not be belittled. Even the reason that executives improve their lives will still shake the market's confidence in the company. After nine senior executives "because children go to school to spend money" and accurate reduction of the Han Wang Technology, the media and the industry has been criticized, the stock price plummeted.

Despite the precedent, management and shareholders are still a huge amount of reduction, what does this mean for Neusoft? Neusoft-related owners also did not explain it to the IT Business News network.

A senior investor in the investment industry said that because executives were far more knowledgeable than ordinary investors about the production and operation of listed companies, the frequent reduction of executives in Neusoft Group might herald an unsatisfactory performance report.

(Responsible editor: admin)