Software industry in the loss of the Tide Kingdee Ufida borrow "cloud" transformation

"This year was not easy, it was a bittersweet year." "A few days ago, Kingdee International Software Group chairman Shaochun in the" 2012 China Management • Global Forum "On the words, the traditional management software industry is now the dilemma.

Since last year, Kingdee Software (China) has been struggling for days, the first three quarters of this year, the loss of 286 million yuan. In fact, not only Kingdee, Ufida, Juki, and so on management software companies are deeply in the loss of the tide.

In order to save the tide, the software industry leading enterprises have bet cloud concept products, trying to reverse the decline, to achieve transformation.

Dismal performance

As the representative of ERP (Enterprise internal resource management system) software, "South Kingdee" and "North Ufida" dominate Chinese enterprise management software for nearly 20 years. In the 2012, two big software giants were hit by Waterloo.

Kingdee International's third-quarter earnings show that its wholly-owned subsidiary company Kingdee Software (China) lost 286 million yuan in the first three quarters. The situation of Ufida is also not optimistic, its third quarter 2012 loss of 131 million yuan. This is also the Ufida since 2001, the first occurrence of a single quarter of business income negative growth. The earnings, Ufida share price for two consecutive trading day fell.

On the other hand, although some enterprises from the purchase of ERP software to the relatively inexpensive collaborative OA (office automation) software, but the OA software seems to be difficult to escape nightmare. The annual report of OA software representative gold and software shows that its operating profit is-3.6 million yuan, relying on non-operating income (refers to the national value-added tax refund) of 4.35 million only to turn to profitability, its operating activities cash flow is also negative.

In addition, the A-share management software industry listed companies, long its software this year, the third quarterly show loss of 35.2274 million yuan, net profit fell 1232.08%; Hang Seng electronic net profit also fell 19.13%.

Analysts believe that as Ufida, Kingdee and other business mainly in small and medium-sized customers, the macro-economic impact, when the small and medium-sized enterprises to reduce the software expenditure, will directly affect the company's profitability; second, the traditional ERP model is suffering from the cloud computing, social software, mobile Internet and other new models and applications of the impact. In addition, the rapid increase in human costs, unreasonable business model, etc., also prompted the survival of traditional software enterprises more and more difficult.

Can cloud concept become a "lifeline"

How does the management software industry, seen as a "barometer" of economic performance, respond to a less-than-ideal global economy?

"For the current situation, companies (traditional software management) are actively adjusting and coping, in the case of Kingdee, in fact, these years have been in transition." Shaochun in an interview with the first financial daily, said, "Kingdee company in the last two years, especially the past year, the difficulties encountered, I think it is a kind of active kingdee adjustment and transformation." ”

In fact, traditional management software has tried to transform many times before. As early as 2010, Ufida, Kingdee launched Wai-ku network, Friends of the network, from the general installation software to the SaaS mode (software Operation service mode) transformation. As a result of product form, enterprise delivery model is different, Wai-ku network was forced to shut down, friends and business network is struggling.

After experiencing the throes of a transition to SaaS, Shaochun began to rethink, "we are now acutely aware that the transition to cloud management is a clear strategic direction for Kingdee-leveraging the three emerging technologies of social networks, mobile interconnection and cloud computing to help customers transform their cloud management." ”

Shaochun the strategy described as "butterfly strategy": Left wing is the fist products ERP, the right wing is the cloud management service. The company's social networking products, which are upgraded by Kingdee Weibo, are seen as the head of the entire wing.

"Two wings complement each other, traditional ERP will be combined with cloud services, upgrade social functions." "It's a product strategy for the next three years and it's the company's overall strategy," he admits. ”

Another giant Ufida announced in May, based on the new cloud computing and mobile Internet model for business transformation, and through targeted additional plans, non-public offerings to raise 1.88 billion yuan for the next generation of enterprises and government application systems, Ufida Services (Beijing) center, Ufida Outsourcing Services (Nanchang) The construction of three major projects in the center.

Can cloud computing become a "lifeline" in the traditional management software industry?

"Cloud management innovation will drive the next round of the IT industry, especially the new growth in enterprise management software solutions." Shaochun said optimistically.

Analysts are generally worried: from the industrial environment, traditional management software is facing a transition to the SaaS model and cloud computing, whether the successful transition will have a great impact on the future of management software companies.

In fact, the cloud service transformation faces many challenges. At present, major IT giants and internet manufacturers have been transformed into the field, 800 customers, Ming Road, North Sen and other IT vendors have launched their own corporate social networking products, fierce market competition.

A market analyst points out that traditional management software providers are trying to make cloud computing the core of future profits, but not the core technology;

From the customer's point of view, Liu Guaquan, director of the Institute, said that the purchase of software products on the company's balance sheet as an "asset", but the purchase of cloud services is shown as "expense", in the report will decline the profits of the enterprise. As a result, customers prefer to buy software (assets) rather than buy services, which will be the dilemma of managing software transformation.

In the short run, the cloud service model is difficult to bring the actual effect to the company. This, Kingdee Group senior Vice President Chen Dengkun in an interview also confirmed: At present, Cloud House is still a free open platform, in the future will be with the accumulation of customer number, provide value-added services. "Through mobile applications to promote traditional ERP sales, to maintain the customer's continued purchasing power of the product, this is the cloud management is currently the main profit model." ”

(Responsible editor: The good of the Legacy)