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Chapter 266 Strategic layout, data center!(1/3)

Being passively beaten has never been Wang Yi's style.

On the contrary, hitting with one punch to avoid hundreds of punches is Wang Yi's style!

As for the strategy, it is to attack in full force and beat the old master to death with random punches!

Anyway, Xingyi Technology is not listed on the market, so it is not afraid of negative news and is not affected by stock price fluctuations.

If it were a listed company, Baidu's ban alone would evaporate a lot of Xingyi Technology's market value!

But if it doesn’t go public, it doesn’t matter. It only affects the current user growth rate.

At this point, Wang Yi is sure to break the game and even win against the wind!

But Baidu is different. As a listed company, any impact on revenue in any field will be quickly reflected in the stock market, causing the stock price to plummet and the market value to evaporate!

This is Wang Yi’s opportunity!

After all, if you are barefoot, you are not afraid of wearing shoes!

As well as today's revenge for the ban, Wang Yi also remembered it.

Xingyi Technology is still in its infancy, many businesses have not yet started, and it cannot compare with the giant BAT.

Even if you are blocked by Baidu, you are temporarily unable to counter-block.

But it's hard to say what the future holds.

When the scale of Xingyi mobile phone increases next year and the number of users increases dramatically, Baidu products will be the first to be sacrificed!

Today Baidu blocks Xingyi Video, and in the future Xingyi Mobile will also completely block Baidu Browser, Baidu Tieba, Baidu Maps and other Baidu family buckets!

Wang Yi has already thought of the reason, which is to violate user privacy and security and collect user data!

This alone is much better than Baidu’s lame excuse for blocking Xingyi’s videos for sensitive content!

Wang Yi will take note of the sealed accounts for now.

The so-called gentleman's revenge is night and day!

At the moment, we will collect a few waves of interest, and then we will block Baidu after it grows stronger!

For this reason, many businesses planned for the next year must be accelerated across the board.

Such as IDC data center!

Song Sining understood what Wang Yi meant: "Chairman, do you plan to build a data center in Jeju or the island city?"

Wang Yi nodded: "Yes, the data center project will also be added to the tripartite talks in a few days. Let's see which side is suitable and which side can strive for good policies!"

In the previous life, Jeju was also in the first echelon in terms of big data and had a supercomputing center.

In addition, Inspur, one of the server giants, is located in Jeju, next door to Miyou Technology Park.

In this regard, Jeju still has great advantages.

There is no way, the current servers do not use Inspur, you can only choose European and American brands such as HP, IBM, Dell, Cisco, etc. This is a real advantage!

As for Huawei servers, the project was only established in 2010, and it would take several years for production to begin.

But the highlight moment had just begun, and it suffered a critical blow in 2016.

Without Intel's authorization, the Kunlun server team had to be disbanded.

In addition, servers are not profitable and internal senior management opinions are not unified. Subsequently, Huawei servers were sometimes independent and operated independently, sometimes integrated with cloud services, and the development was not satisfactory.

Coupled with subsequent force majeure factors, the server business had to be packaged and sold to the Suzhou State-owned Assets Supervision and Administration Commission in 2020 for a price of 60 billion yuan.

But when I was about to sign the contract, something unexpected happened and I had to give up.

Huawei had no choice but to find a new buyer again, and was finally bought by Nam Ha Province, but at a discount to only about 40 billion, paid over many years.

With this funding, Huawei managed to acquire some extra cotton-padded clothes to survive the cold winter, which was not an easy task.

At present, the entire server market is dominated by foreign giants such as HP, IBM, and Dell.

Coupled with the price war pressure from foreign giants, domestic server manufacturers can only survive in the cracks.

For the same product, IBM is 50 yuan more expensive than domestic servers such as Inspur. Who would buy domestic brands such as Inspur?

As for continuing to reduce prices? The cost does not allow it.

Servers are for enterprises, there are only so many customers, and profits are slim.

Regardless of whether it is Huawei or Inspur, the gross profit of servers is about 10%, and the net profit is only 2%!

Coupled with the pressure and price wars from foreign giants, it was difficult to develop a first-generation product. As a result, there were not enough orders, and it was difficult to make back the money, and it was impossible to compete!

However, under this situation, domestic server brands did not give up and still survived tenaciously.

In this process, many brands fell into disrepair due to various reasons such as imperial ban and suppression.

There are also many brands that have overtaken the curve and overthrew international giants.

For example, Inspur, after years of development, subsequently became number one in the country and number two in the world.

As for many domestic servers, they use chips from Intel, AMD, and NVIDIA. There is nothing we can do about it.

Initially, the performance of domestically produced server chips was not up to par, and it would not work without outsourcing.

Just like the domestic mobile phone processors in 2011, they all used Qualcomm, Nvidia, Samsung, and even Huawei P1 used Texas Instruments processors.

Subsequent breakthroughs were made in domestic server chips. Domestic server manufacturers such as Inspur also adopted domestic server chips such as Kunpeng, Feiteng, and Haiguang.

It is the rise of domestic servers that has caused international giants such as IBM to continue to lose sales.

In 2013, IBM's revenue fell by 30% and it began to sell its server business for US$6 billion.

IBM has a habit of directly axing and selling any business whose profit is less than 40%!

Finally, in 2014, Lenovo spent US$2.5 billion to acquire IBM's server business, causing a global sensation.

That year, Lenovo acquired Motorola’s mobile phone business.

Lenovo PC business + IBM server business + Motorola mobile phone business. At this point, Lenovo's business map is completely completed.

I thought that in the fields of servers and mobile phones, Lenovo could also replicate its success in PCs, become bigger and stronger, and create greater glory.

Unexpectedly, servers are a technical activity. Lenovo has IBM's industry and infrastructure, but it does not have sufficient R&D capabilities and technical reserves, so it is still difficult to achieve success.

As for IBM's R&D team and technology...most of them are in the hands of the Imperial people and are not so easy to use.

More importantly, Europe and the United States have strong R&D capabilities because they started early. They started decades earlier than us, so they are naturally more advanced.

But once we catch up and strive for subsequent development, Europe and the United States will be useless, and they really can’t compete with domestic products!

For example, Huawei completed the 5G baseband in 2018, ranking first in the world and far ahead.

But what about Apple?

It acquired Intel's baseband business, gathered global elites, and invested heavily in research and development. As a result, Apple's 5G baseband failed every year and was nowhere in sight...

By the time Huawei's 6G baseband is developed, Apple's 5G baseband will probably be almost there!

Lenovo's own servers are not powerful, and IBM's server research and development capabilities cannot keep up with the trend, resulting in losses every year...

However, the former international server giant IBM has been acquired, which also marks a major change in the server industry: the era of European and American server giants has completely ended, and the era of the rise of domestic servers is coming!

But this time, Wang Yi plans to make this time point come faster and earlier!

Compared with mobile phone chips, servers are equally important, or even more important.

Mobile phone chips are mostly for civilian use and are only one or two generations apart, so there is not much of a problem.

The server is related to AI, cloud computing, and big data!

These are all top priorities.

The future is a competition of AI and computing power!

Powerful servers and server chips are the foundation!

Wang Yi plans to make arrangements in advance so that domestic servers, cloud computing, and AI can all rise in advance!

The breakthrough point is the wave!

Faced with the price war and crazy suppression by European and American giants, other domestic server giants currently either have no way out or their future is uncertain.

Even though Inspur wanted money but had no money and no one needed people, it still vigorously researched and developed and found a special path!

Inspur knows that no matter how hard it is to fight for brand, fight for cost, or engage in a price war, domestic servers cannot compete with European and American giants.

That is to strive for R&D and service at the same time!

Inspur found that different large customers have different server requirements.

However, standard servers are the same and increasingly unable to meet the needs of large customers. Customization is the way out.

However, the European and American server giants are superior and provide mediocre services, let alone large customers who want customization. This is simply unrealistic.

So Inspur seized the opportunity and directly cooperated deeply with major customers such as Alibaba and Baidu to launch customized server business!

Whatever products customers need, I will develop and precisely customize them.

Serving a large customer requires 21-22 positions, and each position may require several people.
To be continued...
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