Full-time acquisition of high, Chinese SaaS market or will detonate

Note: March 4, 2015, Beijing Creative Space Business Communication Service Co., Ltd. (hereinafter referred to as "full-time company") announced to close to 100 million yuan of the price of acquisition Shenzhen High-tech Development Co., Ltd. (hereinafter referred to as "high").

The company and the second largest online video conferencing companies in China, the acquisition is not only a major event in the online video conferencing industry, but also the Chinese SaaS industry market will be a large-scale launch of an important signal.

For nearly 5 years, the US capital market has been very popular with the SaaS industry. With more than 10 SaaS companies with a total market capitalisation of more than $10 billion trillion, and nearly 100 SaaS companies worth more than 1 billion dollars, the company has grown rapidly in vertical sectors such as financial management, human resources management and sales management.

The start of the boom began in 2007, when Cisco's 3.2 billion dollar takeover of WebEx, an online video conferencing company, was thought to have created a history of the SaaS industry in the United States. Subsequently, the success of the sales management software Salesforce the SaaS model rapidly, followed by a large number of SaaS companies, such as human resources and financial planning software provider Workday, the expense management software developer Concur Company, Application manufacturers that provide customized enterprise management software for small and medium Enterprises Netsuit, cloud-based File Management Services box, and so on.

The overall market value of the SaaS industry is also approaching the traditional software industry, and Salesforce, founded in 1999, is almost one-second of SAP, the world's largest enterprise management software service provider, and Workday, which was founded in 2005, now has a market capitalisation of $ more than 16 billion.

In addition to the capital market chase, software companies have also been paying large sums to acquire SaaS companies, such as SAP, which spent $8.3 billion in 2014-year acquisition of spending-management software developers, Concur;oracle $1.5 billion in 2012 to buy cloud customer service providers RightNow; Microsoft also acquired Cloud Customer service Manager Parature at a price of 100 million dollars in early 2014. SaaS is a trend in the early years when the SaaS industry is in the same position as the traditional software industry.

In China, the SaaS industry market is still very calm, and there are few successful local SaaS companies. But in the mobile internet era, the per capita occupancy of mobile terminals such as mobile phones and tablets in China is very high, the gap between the Chinese market and the US market is not big, which provides the ground for the rise of the SaaS industry market, and the intervention of capital forces will also promote the development of the SaaS market.

Full-time company has been regarded as China's SaaS industry leader and pioneer, its customer positioning is the world's top 500 and China's large and medium-sized enterprises, product focus on the PC end and mobile phones and other mobile applications. And depending on the high company's positioning is China's small and medium-sized enterprises, product main conference room video products used. Acquisitions make the whole-time product line better replenished and extended. In 2014, WebEx also recruited the research and development team in Suzhou, China, and also formed a research and development team in Silicon Valley. The current acquisition of China's largest SaaS sector will allow the company to occupy a 80% per cent share of China's domestic network conferencing industry, greatly boosting its competitiveness in the Chinese SaaS industry and investing in local SaaS companies and Business-to-business markets.