On June 18th, Zhang Yong, CEO of Alibaba Group, announced a new round of Alibaba's organizational structure adjustment through a letter to all employees. In the new round of organizational restructuring, Alibaba Group merged DingTalk into the Alibaba Cloud Intelligent Business Group. Chen Hang reported to Zhang Jianfeng, CTO of Alibaba Group and President of Alibaba Cloud Intelligent Business Group.
Dingding, the "flag" of domestic enterprise-level service
Established in 2014, DingTalk, in an environment where WeChat almost monopolizes the social field, uses IM as its focus to enter the enterprise-level service market. In a short period of about 4 years, it has achieved rapid scale expansion. So far, DingTalk has provided services to more than 7 million companies, with more than 100 million active enterprise users on the platform, and 15 million small and micro enterprises are using the DingTalk system.
In the initial stage, DingTalk was just an enterprise social software based on "DING" messages. But it quickly evolved into a platform that can provide enterprises with office collaboration services, and then transformed into an enterprise intelligent mobile office solution provider. Among millions of companies, DingTalk has become a full-link basic technology supporter covering "people, money, things, and things".
At present, DingTalk is still extending its service requirements for subsequent data, collaboration, business opportunities, etc., and is recognized as a domestic enterprise-level service leader in the industry.
Why it is incorporated into a nail Ali cloud ?
The nail incorporated into Ali cloud , is aliyun important measure to break through the current bottleneck of growth, market-oriented ToB open up new space for development.
Alibaba Cloud’s strategic adjustments led to a peak in domestic market share, and revenue growth slowed. On May 14, Alibaba Group announced its Q4 financial report for fiscal year 2019. The data shows that Alibaba Cloud computing business revenue increased by 84% year-on-year. According to natural quarterly statistics, Alibaba Cloud's growth rate is 90%. This data looks good, but when compared with the data of the previous few quarters, the problem will be found: Prior to this, Alibaba's cloud computing business achieved an amazing growth rate of doubling the scale for 11 consecutive quarters; even in the relatively poor fiscal year 2018 In the third quarter, its year-on-year growth was also as high as 104%. In short, Alibaba Cloud has bid farewell to the past era of triple-digit growth.
What's more troublesome is that the current market share of Alibaba Cloud is being eroded by cloud computing vendors at home and abroad. According to the May release of "Chinese public cloud services market (the second half of 2018) Tracking" report, Tencent cloud with 11.8% market share in hot pursuit aliyun ranked second. In the second half of 2018, Baidu Cloud entered the top five rankings for the first time, showing great potential for development. Moreover, as the Internet economy enters the "second half" of the industrial Internet, the cloud computing market is fiercely competitive, showing a trend of going against the current.
Faced with the peak market share and the slowdown in revenue growth, Alibaba Cloud began to act.
At the Alibaba Cloud Beijing Summit last year , Zhang Jianfeng, President of Alibaba Cloud’s Intelligent Business Group, emphasized that the goal of Alibaba Cloud’s smart upgrade is to talk about the technical output, product output, and B-side services that are known within the Alibaba department, all integrated into Alibaba Cloud. The smart platform comes up. In this integration process, DingTalk has been established as an important technology and innovation provider such as Ant Financial, Cainiao, and AutoNavi.
In order to achieve new breakthroughs, Alibaba Cloud must have more comprehensive application-level business implementation capabilities. In this regard, the merger and integration of DingTalk can bring irreplaceable effects. According to the latest data, more than 7 million companies use DingTalk daily, and the number of enterprise users active on the DingTalk platform has reached More than 100 million.
After the merger of DingTalk, Alibaba Cloud will continue to assume the role of underlying technology and system support, while also making full use of DingTalk's customer base and technical architecture to provide enterprise users with application-level development and services.
Consolidation is the need for Alibaba Cloud to seek a breakthrough from the B-side.
Nails incorporated into Ali cloud pros and cons
Nails incorporated into Ali cloud , in the general direction is to serve Ali ToB strategy, but on the merger between the two sides, the advantages and disadvantages.
Favorable aspect is that the nails incorporated into Ali cloud after Ali's basic structure forming a closed-loop ToB service, Ali cloud integrated strategy will facilitate the implementation.
In January this year, at the celebration of the 20th anniversary of Ali’s founding, CEO Zhang Yong pointed out that one of Ali’s important measures to “make the world easy to do business” is to use the “Alibaba Business Operating System” to help enterprises realize the digital revolution. This business operating system is actually a complete set of technical infrastructure formed by Alibaba’s diversified business scenarios and digital capabilities that it has created, fully integrated with cloud computing, AI technology, and big data technology. Online and digitalization of 11 major business elements such as commodities, sales, marketing, channels, manufacturing, services, finance, logistics supply chain, organization, and information technology. Ali's business operating system is the core advantage of Ali's ToB service.
Since January, Alibaba has been working internally to integrate various technical infrastructures and DingTalk into the Alibaba Cloud intelligent platform. After completing the integration of Cainiao, Hummingbird Distribution, Alibaba, Ant Financial, and Alibaba Cloud , the Alibaba Cloud Intelligent Platform has the integrated output capabilities of logistics, digital marketing and data management, payment and financial services. Today nails formally merged into Ali cloud , the infrastructure will become operational and technical aspects of the enterprise digital data management. An open "digital brain" closed-loop organization that can systematically solve problems for B-end enterprises has also formally taken shape.
More importantly, the merger of DingTalk has also solved a difficult point in the implementation of ToB strategy for Alibaba Cloud . In March of this year, at the Alibaba Cloud Beijing Summit, Alibaba Cloud proposed the "integrated" strategy. In this strategy, Alibaba Cloud clarified its own ecological boundary: not to do SaaS. The implication is that Alibaba Cloud will no longer directly participate in the development of SaaS for end customers, but instead will open its technical capabilities to partners to be "integrated", support third-party developers, and use their professional capabilities in various industries. , To jointly create the most suitable SaaS for customers.
This strategy can help Alibaba Cloud build a better ecosystem, but there is also a problem, that is, it will not be convenient for Alibaba Cloud to intervene in SaaS businesses in many areas. Alibaba is obviously not reconciled to this status quo.
After merging Dingding, this business will be handed over to the latter. In fact, Dingding CEO Chen Hang clearly stated, “SaaS services involve CRM, ERP, OA, HRM, financial management, travel management, collaborative office, cloud storage, membership management, customer service management, purchase, sales and inventory management, etc. "Multiple areas", DingTalk will never give up these areas, but will "combine its core capabilities and partner products to better meet user needs."
Nails incorporated into Ali cloud bad side is that you want to operate independently nail in the short term is impossible. Four years ago, Ali gave DingTalk and its principal Chen Hang considerable independence. Four years later, with the continuous expansion of Dingding’s user scale, there have been voices that Dingding may gain the status of an independent brand and independent operation. Market participants are also often discussing the topic of Dingding’s “valuation”. After Dingding was merged into Alibaba Cloud , Chen Hang's idea of making Dingding independent should be difficult to realize. I don't know what Chen Hang thinks about this? Of course, leaving DingTalk aside, Chen Hang may have a broader world in Ali; in addition, a DingTalk that is no longer possible to operate independently and is deeply integrated with Alibaba Cloud in management and operation is for many enterprise customers. , Psychologically inevitably murmured. For more than 7 million companies that are currently using DingTalk, this platform has become one of the “organs” of the company. Its product functions cover the four elements of “people, finances, things, and things” of the company, and almost All the key data. From the perspective of the corporate world, they want to see DingTalk have greater independence, so as to ensure its data security.
Enterprise concerns will definitely affect DingTalk's future development. How DingTalk and Alibaba Cloud can dispel everyone's concerns? I'm afraid this requires a set of guarantee mechanisms.
Generally speaking, nails incorporated Ali cloud more advantages than disadvantages, cloud + client collaboration, such that the aliyun is more convenient integration strategy embodiments, more competitive.