Zhou: I'm friends with Lei.

Absrtact: "Editor's note" Zhou the future direction of internet companies observed abroad: IoT and large data AI processing. He stressed that he must work closely with Internet hardware companies in the future. It is worth mentioning that Zhou in the speech also clarified

"Editor's note" Zhou the future direction of internet companies observed abroad: IoT and large data AI processing. He stressed that he must work closely with Internet hardware companies in the future. It is worth mentioning that Zhou in the speech also clarified himself and Lei is actually a good friend.

Qihoo 360 CEO Zhou 祎

Qihoo 360CEO Zhou has previously thrown out the view of "big data," he said at the 2014 Forbes China Innovation Summit today, a number of industries will be transformed by the cloud of large data, and an exciting IoT entrepreneurial era is coming. In the face of the subversive impact of the Internet, traditional industries should be more close to the users in order to hatch the innovative business model with value.

The IoT model is called the Internet of Things in China. Zhou that in five years, the domestic will have 20 billion devices to the Internet, and will produce huge amounts of data, so the real big data era has not come, the future in this area hidden huge opportunities. "IoT will be a new Internet that connects everything, intelligently, and interconnected with the Internet." At present, the domestic 500 million computer internet users have been monopolized a large number of data and traffic, and 1 billion of mobile phone users in 35 years after the real outbreak of an area, I think this is our innovative companies a lot of entrepreneurial opportunities, Zhou said.

Zhou also shared with the summit the future direction of internet companies observed abroad: IoT and large data AI processing. He stressed that he must work closely with Internet hardware companies in the future. It is worth mentioning that Zhou in the speech also clarified himself and Lei is actually a good friend.

Here are the full contents of his speech:

I have just come back from the United States, I go to the United States once a year mainly to recharge, because although we Chinese Internet industry development is very vigorous, we also heard a lot of things are giants, and you have nothing to do with it, we have this development of the Internet in fact I think more is not innovation, more is the demographic dividend, Because we have the world's largest mobile phone users, so many very simple business models as long as there are so many users a grafting, we will also produce a lot of high-level companies.

But I really want to innovate, I think to go to Silicon Valley, I visited many American VC in Silicon Valley, asked him how to see the trend of the future, because VC is always looking at the future company.

The second I met a lot of startups, because listening to a lot of startups talking about some of their reliable or unreliable ideas, you can feel your horizons open, so I call it an innovative charge. This time in the United States to catch up with Google's strategy to publicize it, so I summed up a popular concept in the United States, a call IoT, that is, in the past we called the Internet of Things, the word Internet, I think it is not very appropriate, as if from the original concept has been very hot.

But are the concept of speculation, it does not really with the people consumption, not really with the common People's life together, I think IoT the word is very appropriate, that is, everything should be connected to it, to turn it into intelligent equipment, it must be connected with the Internet.

And one of the more hot things is the robot (300024), a lot of things once joined this cloud, this kind of opportunity large data artificial intelligence processing, for example, Shenzhen has a company called Dajiang do four axis six-axis UAV aircraft, in fact, here with the intelligent control of the cloud, in a way it is also a robot, So combine the two concepts. Take a look at some of the products Google launched this year: the combination of Android and cars, the combination of Android and watch, the combination of Android and television, and the combination of Android and smart home, and you realize that a new era has come.

So I agree with editor Zhou's point of view, a more exciting time for entrepreneurship will come. Many entrepreneurs feel that the Chinese Internet has been forced to do, the past is to kill you, now is to eat you down, it has monopolized more users and traffic, including the original 500 million of Chinese computer internet users. Now China has 1 billion mobile phone users, so we must stand now to see the future, if we again with the Millet competition mobile phone or learn what the giant to do timely communication, I feel that is already being seized by others, we should look to today just started the project, although it may be in 35 after the real outbreak, But I think this is the opportunity for many of our innovative companies to start a business.

What do I think is the biggest opportunity? Imagine, even if everyone has an average of 1.5 mobile phones, China's future is the largest number of 1.5 billion mobile phones, the computer may be 600 million, these things are determined. But I tell you if the future you imagine your home every light bulb every socket, all the household appliances in your home, the glasses you wear, the watches you wear, including any device you can see, if it's a phone that's not called a cell phone, it's probably an intelligent system based on Android, and using 4G or WiFi networks to connect to the cloud, I should have 20 billion devices connected to the Internet within five years. These 20 billion devices produce huge amounts of data every day, so I think the real big data age is not coming.

You think about the future. In this opportunity, including Zhou's total mention of reinventing industry and reinventing itself, there is a huge opportunity. So yesterday I happened to see an American scholar who wrote a lot of books, his name is Tak, I agree with him a point of view, he said that today you re invented you see any hardware device to do two things, the first is to make it intelligent, the second is to connect it to the Internet, in fact, there is a cloud, The so-called cloud is to say that it's a lot of control logic artificial intelligence a lot of processing is in the cloud, through the way of large data processing, then you find that there are many existing industries are being reshaped or rebuilt, so I think this is a huge opportunity.

And there's a lot of people talking about robots, talking about autopilot, in fact, we all expect the development of artificial intelligence technology, but the truth is that the traditional artificial intelligence technology has not been much progress, the recent machine translation in speech recognition, face recognition has made a lot of major breakthroughs, not traditional artificial intelligence, But because of the big data, when I use the massive data to carry on the analysis with the Big Data algorithm, you may discover many traditional artificial intelligence question actually to use the big data to obtain. This is my first point of view, I think for everyone this may be a new Internet, 1.0 is PC Internet, 2.0 is mobile Internet, 3.0 may be the Internet has become ubiquitous, the so-called IoT, this is a huge opportunity.

But this huge opportunity in fact also contains a lot of challenges, now a lot of China, especially in the traditional industry and manufacturing companies, we can easily hang a label for it as a traditional enterprise, they may also see a huge opportunity, but how they meet the challenge? Instead of being subverted by the Internet, Because the Internet now for many industries and industries have shown a strong first to destroy the power of reconstruction, in fact, many industries have been overturned by the internet, so everyone now has a kind of internet anxiety.

Everyone in the transformation process in addition to say that I have my equipment intelligent, I should also do something? I often communicate with many enterprises, if you just use the Internet technology, this is just the first step, if you just say that the use of the Internet marketing, such as I go to do the electricity business, I Taobao in the East Open shop, I go over the traditional channels to sell my products, and I think it is also a primary stage in the use of the Internet, it is the use of the Internet tactics, not strategy.

How to let your business really from the business philosophy, from the road can really become a consistent with the so-called Internet thinking enterprises, how to do the innovation of the Internet? I want to share a few feelings. The first time you change the Internet, I think the hardware is not only the Internet company, internet companies now have a lot of people to do hardware, I have also pulled a lot of unreliable small partners to do a mobile phone, and finally failed, in the hardware we have done a lot of attempts, but today still adhere to down, I think the hardware is still a pretty high threshold.

Do not like the software, I today this software is not very good to send out, the user gave me feedback, and then I modified, the software itself is free, if you think I have a problem with software, you do not have to. But the hardware is not the case, if you send a defective version of the hardware, users are spending money to buy, you will find that this is basically disastrous results, users to you scold to death. If you want to recycle it, it may mean that all the hardware is obsolete. So this hardware I think is also a big pit.

A very interesting phenomenon is that, for example, a factory in Dongguan is actually able to do hardware companies, I think these people in the past in the hardware industry, the profit is very meager, the competition is very fierce, in fact, it is very bitter. Finally, I believe that the survival of the company is very good. But you find that it has a high sales, but because it has no internet model, even if the hardware can be made to do a lot of quality, the company can have billions of sales a year, the company's valuation is very low. On the other hand, a few small hardware can add an Internet concept from the OEM hardware, although they do not know how to create the hardware, but they added an internet tag, we shong comrade, I want to invest in you, the minimum of 100 million U.S. dollars.

A joke, so you'll find a strong contrast, so my last point of view is that if the Internet companies in the new wave I think the internet hardware companies must work closely together, so this is a lot of hardware enterprises, if I can take such an opportunity, not only to make their products intelligent, Not only make their products internet and cloud, can also let their business model, so that their own labels out of the traditional relatively low profit or even this low level of such a special traditional label, your business may also be able to achieve the Internet transformation, you can enjoy the Internet, a lot of capital feedback, Actually I think here is a huge opportunity.

We're going to have this meeting today. I was thinking that I could not come in vain and I would like to work with a lot of small partners in manufacturing and the Internet. The first one I think when you want to do Internet hardware, first user first concept, user supreme I think this topic seems corny, but in fact, in the traditional industry is not the concept of users, we think carefully, we used to be what concept? is the concept of the customer, who is the customer? The man who paid me, In fact, there is no complex business, I do this thing sold to you, you pay me the money this business is completed. But the idea of the internet I think I still have to change. Why not? First you provide some services and some features users may not pay you, you also to serve customers well, that is, if you want to expand your influence, you can't just look at the people who might be paying you, because selling the hardware is not going to buy 1 billion people in China, maybe hundreds of thousands of people at a start, But how do they relate to you even if they don't pay you or don't buy your product? This is a question you should consider.

For example, many people think that I and Lei are mortal enemies, in fact, I and Lei are friends. You look at the big sale of millet mobile phone, you did not see the millet phone before they made a modified meter, Android system changes, so that users to use for free. In the Internet really attract your fans and users, although these people are not your customers, the first to have users, then customers. I think it's a basic rule in the Internet.

The second more important if you want to really transform into the Internet enterprise, the essence of the Internet Enterprise we provide a service, so your users between you and customers to change between the business can not be one-time, in the past we sell hardware, the product through the actual use of advertising information asymmetry, Then the rhetoric to convince users to buy our things, many of our enterprises hope that this user will never find me, the traditional selling TV is this truth, the user may come to find him may be to repair or return, so you and users do not contact, this customer has no value, The real Internet-fastidious user relationship is that you've downloaded my software, business is not over, business has just begun, you have my hardware, our relationship has just begun, how can I through this hardware to provide continuous service, and finally turned this user into my viscous users, which is a challenge to many enterprises.

For example, the recent music as the Internet TV, the past television competition, television industry, the elderly do more than 20 years of television, people are selling hardware, but their TV this year added intelligent module, I think it is not adding intelligent modules to become Smart TV, your business has no intelligence. There is no limit to the Internet, they rushed in to buy a TV, I believe that 70-inch music to sell 8,000 dollars will be willing to buy, but I think it each is deficient. People buy not to buy a TV competition has been from looking at the size of the shape, I bought a TV home you have a lot of film to me, if not so many films he will not buy this TV. Because the past is to do the hardware is to sell you TV, is now forced to do things on the TV station. You'll find that this is the user concept that poses a huge challenge to the business model.

So I think you're going to think about how my hardware model goes from one-time to client, and I can turn him into my contact user. Many old people do not understand the Internet, this person to burn money, like a period of time before the drop of a taxi and quick drop a taxi, I also did not distinguish who is who, they not only don't want that money also willing to pay, many people are said to take a taxi is white sit, one months burned 1 billion, a one months burned 1.5 billion, it is to allow users to install its software, In order to use its software to develop user habits. So I think this is the most important thing for many people to transform the Internet. And a lot of business on the internet I think first of all to give users to create value, so that users feel that you are really good, then you may actually make money on the Internet.

The second keyword is called the experience, experience for the king, I think today the Internet is actually leveling the distance of the world, so that information becomes more symmetrical, traditional advertising I have always felt that there is DOJ, the traditional ads are based on information asymmetry to do, buy the essence of not selling, so the Chinese will be vigilant, But the internet will give consumers an unprecedented right to the truth. So in the past when we did the truth in marketing there is a wrong idea, we often think of a few selling points, we often consider some of the selling point we thought is to introduce, but the selling point I tell you, if consumers get your products can not feel empathy, Can not really realize that consumers will pay for your this, the future will not. So your design ideas to change, not necessarily do a lot of functions, you must think about when consumers get your products what kind of function to give him a surprise, what kind of function let him really feel you to create value for him.

Let me give you two examples. There was a certain operator in order to sell mobile phones, they said that my mobile phone green radiation-free, this phone does not do very successful, why? Because there is no radiation this point you say you can judge? Including today in a lot of these phone battles in China I'm seriously studying them, for example, like Huawei to do mobile phone is very good, I think a lot of traditional Chinese manufacturers do not do mobile phone than millet poor, but you will find on the internet because they do not understand the user experience of the view, they are more to publicize my technology and ideas, The last user was unable to perceive. For example, you say your mobile phone inside do what appearance, the user knows what. On the contrary, the other mobile phones are running a point, we have known since childhood 100 points than 90 run. For example, last year there was a mobile phone called what 7710, 6630, I casually nonsense the number, I heard a faint. So the apple is very simple, the Apple 6 to come out, 6 or 5? Of course, 6, so I want to know to change my Apple 5 to Apple 6. So you will find that the user's perception in the Internet is the most important, if your product is again good, not to be perceived by users, many of our products will be difficult to get the favor of consumers.

Third, I think it's important. I want to say a key word called free, the Internet is the most terrible weapon is free, free is also the hardest to learn martial arts, I recently prepared to write a book, originally I came up with a name is Sunflower treasure, publishers do not agree. The first page of the expected success, must first self attack, so I added eight words even if self attack may not be successful. So free is a double-edged sword, you use it for free and it can help you move forward quickly. But you use bad, the internet many companies are free of subversion. The Internet is free, today said the hardware is not to be free?

In fact, I talk to you about free in the internet is to build a normal business model, because through the free can accumulate a large number of users quickly, I just said that there are users to do the basis, you actually can find many ways on the Internet, the user to cash out, on the contrary, there is no user base, where we talk about our mode is the consumer, business-to-business, It's all imagination. But the hardware I actually think is not for all the hardware, for many popular products hardware, I actually feel that free will also be a possible subversion. That means the hardware is free, with two layers of meaning, the first is that when your hardware is very low in terms of Moore's law, you find that if you send this hardware, you can get back the hardware of the up value than the user cost, such as in the telecom to save phone calls, it is actually a very extreme hardware free. Google used to do a test in Japan, why Google used to be Android, they found that if the cost of the Android phone is assumed to be 100 dollars or even lower, they found in Japan that if you send to users, if the user insisted on using a year in this area he just use Google's search, with Google's map, Read Google's video ads, also played Google games, probably in Japan, a strong consumption capacity, the up value of each user is higher than 100 U.S. dollars, so this means that the delivery of hardware is possible.

But for the vast majority of enterprises, people think You don't fool me, we will be bankrupt as soon as we send. There is also a hardware free of charge is the hardware to sell at cost price, that is to say, the hardware itself to make profits, is unlikely. I think the competition is very fierce now, then it is very likely that you do not expect the hardware to make a high profit, its profits will certainly be reduced. I am talking about the popular mass consumer products, so you see what all these years prices, only computers, notebooks, mobile phones are more and more strong performance, and then the price is getting lower. So today, a lot of our startups are making hardware. You have to start thinking about it, and if you don't, your competitors are likely to do it, so if you can't deal with this free business model it would be scary.

In the Internet, when we do free antivirus, a lot of people do not understand, feel free this is not a liar, this is not a cheat? In fact, finally through the free anti-virus we not only eliminated the attack on the competitors, but more importantly, quickly to the Chinese hundreds of millions of internet users have become our users, That year in the free of the biggest loss of the company called Jinshan, Jinshan chairman is Lei, so lei students learn from this lesson, in fact, Millet is because of the hardware free example, millet is not hardware free to send, but the hardware may now maintain very meager profits. Millet in the launch of the time in a long time to launch a dual-core 1999 I think there is no opponent, the best thing to do in business is to have no rivals, and then any handset maker makes the same mobile phone at that time for all sorts of reasons to sell 3,000 yuan, so you say this thing for Chinese users is always the most strength of price.

Someone told me that now Millet has a brand, now how we can sell feelings, how to sell feelings this thing I do not understand. I don't have the ability to sell products. Even for millet such a successful company, you can see the red meter out of 699 of the mobile phone, M 3 Why the price, now down to 1499 or 1299, in fact you found in China's hardware such a low profit or even no profit competition will be the normal. But everyone will ask a question. Since you are free, how to make money? If you want to do free you have to do cross-border, there is a saying that the wool in the pig, the past your business is simple, you are selling hardware, today, selling hardware does not make money, today, selling hardware are in access to users, At this time you can not define yourself in a narrow sense as I do hardware business, if you can not cross the border, your business may be weakened by Internet hardware, at this time you can through the cooperation, through investment can be through a variety of ways, must be cross-border. It may be possible to sell mobile phones in the future through, for example, games on the phone, reading on the phone to make money. After selling the TV box, I think box TV must be paid to make money by program. Therefore, the core competitiveness of enterprises in the new business of this ability, in fact, has put forward a huge challenge.

Talk about Internet innovation, in fact, there are many keywords, what focus, fast, but I think these things are tactics, if let me summarize, I actually think you want to really understand why the internet companies are subversive, or why these companies do it? There are three keywords, one is the user first, How to turn a one-time business into a connection between you and the user, the second is to experience the king, that is, from simply to sell, but really consider when users get this product I how to give him a particularly good experience, so that users can really feel this value. The third is that you have to learn to deal with the challenges of free, and you have to think about whether you can expand your business to make the traditional business be free of your own initiative. So why is today's internet competition so good, all businesses are doing cross-border, everyone wants to make your money business free of charge, on the above set up a new mode of earning money.

So this is the best of times and the worst of times. But I believe there is a solution to this is cooperation, I think it may be difficult to do internet companies in the short term to go beyond a lot of traditional hardware companies, how we find a cooperation, in this cooperation or by slowly evolving, time is very long, by mutation, there is the Internet gene and traditional hardware of the genetic combination, So that we can do hardware services, we create a new business model for the Internet model. There are many opportunities here.

We live every day in the middle of a giant. So I can not do anything, I can not do anything, but I have the number of users, my personal ability to cheat is not worse than thunder, so if you have good hardware have good ideas welcome to write to me, we can help you build Internet background cloud services, It's more important that we discuss how to get your business model from the traditional sales hardware to the meager profit to finally become able to do the Internet service Company, is looking forward to this opportunity.