This is also the consensus of most Wall Street investment institutions. The success of Tencent and Alibaba in Silicon Valley, Wall Street investment institutions do not think it is because of the outstanding capabilities of Erma, or because Tencent and Alibaba are two companies from China. What is different about Internet companies?
Investment institutions believe that the reason why they can stand out in the fiercely competitive Silicon Valley is entirely because of Zhou Xin. In fact, Zhou Xin is more involved in Tencent's strategic direction. Zhou Xin has almost no interference in Alibaba.
To enter Silicon Valley and help America's traditional consumer companies undergo digital transformation, this strategic direction was also set by Jack Ma. Zhou Xin did not expect this at all, because Zhou Xin was not interested in the e-commerce business and was purely interested in Alibaba. investment behavior.
Therefore, for Chinese Internet companies to survive or even live well in Silicon Valley, their own capabilities are equally important. Amerikan Enterprise updates a version every few months. It only considers the input-output ratio for user needs, and first determines whether it is necessary. It is necessary to judge later whether the final income is comparable to the output and whether the development efficiency is high enough.
Huaguo's Internet companies are almost responsive to user needs. Regardless of whether the needs you put forward today are reasonable or not, Huaguo's Internet companies will help you transform them into achievable functions, and even understand the needs more deeply than you think.
China's Internet industry is far more sophisticated than America's. Because of the success of Tencent and Alibaba in Silicon Valley, China's Internet industry has begun to show the style of a Internet industry leader in later generations.
Zhou Xin just smiled slightly after hearing this. He was still very proud of his timeline of completely changing the world.
Although China's Internet began to roll up many years in advance, China's Internet also enjoyed the dividends brought by international capital many years in advance.
In this era when the general salary level in other industries is 3,000 yuan, programmers can earn tens of thousands of dollars.
What's more important is that Zhou Xin has largely enabled China's Internet companies to start overseas business almost twenty years in advance.
In the original time and space, why did China Internet not have capital to invest overseas until about 2016? It was because the costs of running a company in China were different from those in America. Investment institutions invested money in China based on The investment is based on the valuation of the company.
For example, Alibaba raised US$5 million from Goldman Sachs at the beginning. US$5 million could support their normal operations in China for a long time. But if it were transferred to Americen, this amount of money might only be enough to operate for half a year.
If you haven’t seen any results after half a year of operation, and there is no capital to continue investing in you, your internationalization attempts will only end in failure, and you won’t be able to gain any valuable experience.
The difference now is that Zhou Xin used Tencent in advance to build the reputation of Chinese Internet companies. Both Americen Capital and Silicon Valley Internet companies know that Chinese Internet companies are full of potential, and Chinese Internet practitioners hard working.
In the past three years since the turn of the millennium, Zhongguancun and Silicon Valley have cooperated in various ways, including Alibaba and Tencent, which established branches in Amerikan directly funded by their parent companies. There are also companies like Sohu and Yahoo, which have joint ventures to establish companies in America.
There are also companies like Sina and Joyo.com. Sina's Internet business was fully acquired by AOL and became AOL's branch in China, while Joyo.com was acquired by Amazon.
The degree of integration between the two parties is deepening, and the entire Internet industry is filled with the smell of money. Even in Internet deserts in first-tier cities, programmers' salaries are unique and can only be matched by those working in the chip industry.
Zhou Xin said: "Okay, I agree with your point of view, you can go ahead and do it. You should have a deep understanding of the public cloud business in the past three years.
This business requires a lot of capital to expand. It is a better cash flow business than IDC custody. Wall Street will definitely be interested in such a business.
Now this model has been run through. From the background, the user growth rate is getting faster and faster. We are now starting to expand so that our competitors can be caught off guard. "
The only manufacturers that can compete with New Cloud on the public cloud are Microsoft and Baidu, because they have the ability and willingness to start this type of business.
Compared with earlier server leasing and hosting, the biggest advantage of public cloud business lies in the dynamic allocation of resources and self-sustainment of servers.
The cost mainly consists of several components, including space, servers, network resources, electricity, supporting equipment such as precision air conditioners and USP power supplies, and labor costs. The bulk of the cost must be the server.
During the initial expansion, a large amount of capital is needed to build computer rooms in major cities. After the construction is completed, the bulk of the cost on the books is equipment depreciation. After the equipment depreciation is completed, the books will be pure profits. As long as there are few competitors, this It's a very good business model.
When there are many competitors, price dumping will occur. For Zhou Xin, price dumping does not matter. What he values is the technical foundation brought by Xinyun and the chip business included in a large number of servers.
Servers have very low requirements for chip manufacturing processes. Until 2023, the most advanced chip process has reached 3nm. The latest Xeon processor launched by Intel's data center business still uses the 10nm process.
Therefore, Zhou Xin wants to rely on Wall Street capital to support Xinyun, which is indeed a good business for them, and then rely on Xinyun to support the chip foundry business.
In this case, Xinxin Technology's chip foundry business is supported by Mphone, Bluetooth chips, Xiaomi, and New Cloud. Even if it grows to the scale of TSMC, there is no need to worry about running out of business.
Xinyun has made up for the last shortcoming of Xixin Technology's chip foundry business. There is still a big difference between enterprise-level chips and ordinary home computer chips.
"Pony, how is Tencent's mobile business progressing recently?" Zhou Xin usually meets with Pony once a month to talk about Tencent's recent business trends and development direction.
Pony is married, but his wife is still in Pengcheng. He travels both ways all year round, and returns to Pengcheng for one week a month to handle business there.
Among the founding team of Tencent when it started its business, Zhang Zhidong stayed in Pengcheng all year round and was responsible for the operation of Tencent's business in Pengcheng.
Pony said: "The mobile business is developing rapidly. WeChat's advertising business revenue should exceed 50 million US dollars this year, and the growth rate is astonishing, because Mphone2 can start to use 3G networks.
WeChat, which has lifted restrictions on image loading and video loading, will have more bargaining power when negotiating with advertising parties. "
WeChat and Weibo are both businesses of Tencent's Americen branch. When Tencent's Americen branch was established, the equity structure was adjusted. Zhou Xin controlled 65% of Americen's North American branch. Of the shares, the remaining 35% is given to the employee option pool. Pony and some of Tencent’s old employees who came to Silicon Valley to open up wasteland will definitely account for the majority.
Pony alone holds close to 12% of the shares. You must know that Tencent North America's valuation exceeds US$5 billion based on Weibo and WeChat businesses alone. When it was actually listed, investment institutions believed that it could exceed US$10 billion.
Pony continued: “After the restrictions were lifted, the user activity of the WeChat Moments function has exploded, and the combination of pictures and text allows users to have a stronger desire to express themselves.
Because of the positive feedback from the data, we decided to increase our advertising pricing by 30%.
Subsequent adjustments will be made as user activity increases. "
After Zhou Xin heard about 30 percent, he said, "Did you choose this number because of me?"
Pony smiled awkwardly: "Yes and no. The main reason is that we can't control the extent of the price increase, so we chose a moderate number of 30%. According to my idea, I even want to double it directly."
Tencent now has no interest in the game business at all. Their domestic business mainly relies on selling QQ shows and placing advertisements in QQ space.
At the same time, Huaguo is also promoting WeChat and Weibo, but the progress is slow and the commercial potential has not yet been realized.
Tencent's business in Amerikan is mainly advertising and corporate QQ sales, and it has never thought about transforming into the game business.
It’s not that I don’t like the game business, but because I don’t have time. The current business model is rich enough, and I have no motivation to enter a new field. It’s not like Tencent in the original time and space who had to go if it couldn’t find profit growth points. Eat dirt.
Tencent's revenue from the advertising business in the Amerikan region alone exceeded 50 million US dollars. Last year, the most popular game in China was Legend. Shanda's annual revenue from Legend was only 400 million RMB.
Tencent has no desire to be a game, and Taobao has no desire to be a human e-shopping website. With China joining the WTO, foreign trade is so profitable that it is as fast as picking up money from a sack. The entire Alibaba team is focused on On how to make a good bridge.
The bridge here refers to promoting cooperation between Chinese manufacturers and foreign companies. To put it bluntly, it means selling Chinese products to the world.
Zhou Xin said: "Actually, it doesn't matter if you take a bigger step. The smartphone business is developing rapidly. You may think 30% is more appropriate now. After you sign a contract with an advertising agency, you will regret it when you see the data. Why didn't you do it at that time? Let’s set the number at 50%, or even 100%.
But it doesn’t matter, we are in long-term business, and even if we let them take advantage now, it won’t matter. "
Zhou Xin no longer cares about this benefit. He didn't feel anything when he heard the revenue of 50 million US dollars. What he cares about is the market size.
"Are Motorola and Nokia still unwilling to let WeChat enter?" Zhou Xin continued to ask.
Pony said helplessly: "We have communicated with them many times, but they have always had an ambiguous attitude.
When we want to move forward, they will talk about him again and again, as if they are hearing about it for the first time. "
(End of chapter)
