This topic, like the XX post, has been discussed by the industry for ten years, and I am tired of it.
I often say that if you can't see something clearly for ten years, then don't read it. If you don't know who the idiot is at the table, chances are you are the idiot.
We divide Chinese enterprises into 11 categories according to their scale:
1 trillion or more
100 billion-1 trillion
50 billion-100 billion
10 billion-50 billion
5 billion-10 billion
2-5 billion
1-2 billion
500-1000 million
100 million-500 million
20 million-100 million
5-20 million
（1）
The three giants (Tencent Qiwei, Byte Feishu, and Ali Dingding) mainly focus on the following markets:
20 million-100 million
5-20 million
At present, the three giants have started charging, which is a good thing.
According to common sense:
For Chinese companies with a revenue of 20 million to 100 million yuan, it is more realistic to use various enterprise software with a total annual fee of 5,000 to 10,000 yuan, with a maximum of 30,000 yuan (this is not common).
For Chinese companies with a revenue of 5 million to 20 million, it is more realistic to use various enterprise software with a total annual fee of 500 to 5,000 yuan.
Main application (such as video conferencing + shared documents) + code-free forms, low-code light application development tools + application store ecology, this approach is quite suitable for this market. I heard that there are more than 8 million low-code applications with no-code forms on the DingTalk platform.
（2）
In fact, in China, there are not many companies with an annual revenue of more than 10 billion. In China, some people consider those with more than 2 billion yuan to be large enterprises, while others consider those with more than 5 billion yuan to be large enterprises, and some even consider those with more than 10 billion yuan to be large enterprises. Therefore, in China, how to divide the mid-sized market is actually quite particular. So we can divide it simply and roughly like this:
100-500 million
500-1000 million
1-2 billion
2-5 billion
5-10 billion
Therefore, Chinese companies with 100-500 million yuan are the most accepting of public cloud, multi-tenant, and subscription payment. The three giants can talk about this level. But this level is also the most intense fighting. Traditional OA vendors are also fighting this market with code-free forms, medium-sized ERP vendors are also fighting this market, and SaaS vendors in various fields are also fighting this market. So this market has been torn into fragments. But this is also a good market where SaaS products are easiest to achieve continuous subscription revenue - diminishing marginal cost - long-term net profit. So everyone in this market is gritting their teeth and not giving up. However, in the past in China, this market has always been the main market for distributors. The SaaS model directly reaches enterprises and pays for continuous subscriptions, which has a natural conflict of interest with local distributors. This is an embarrassment with Chinese characteristics.
More than 2 billion Chinese companies have begun to have customization requirements and public IaaS dedicated deployment (not multi-tenant) requirements. However, 2-5 billion enterprises can gradually accept SaaS through long-term market education and guidance. As for customization requirements, they can be met through no-code forms, low-code light application tools + app store ecology.
5-10 billion customers have strong requirements: private IaaS exclusive deployment and customization. But through long-term market education and guidance, they will also slowly use it: public IaaS dedicated deployment (not multi-tenant).
This is the same as upgrading and fighting monsters, take your time. First hit 100-500 million, then hit 5-1 billion, then hit 1-2 billion, then hit 2-5 billion, and finally hit 5-10 billion. If you don’t upgrade and fight monsters in this way, if you have to push SaaS to these markets across the board, you can only lose more than your income.
We can assume that we can consolidate the market of 100-500 million yuan in 5 years, and we can consolidate the market of 500-100 million yuan in 5 years, and so on, we can sweep this market within 25 years. Of course, my logic is all linear thinking. In fact, it will accelerate at the end, so 20 years is more realistic. So let's count: China's SaaS market will last ten years until 2025, so 2025-2035 is just the harvest year for the SaaS market.
（3）
More than 10 billion, this is a large enterprise market recognized by the entire industry.
In China, those with a revenue of more than 50 billion are the top 500 companies in China. That is to say, in China, there are only more than 500 companies with an annual revenue of 50 billion. Of course, there are more than 200 enterprises with a level of over 100 billion in China, and more than 20 enterprises with a level of one trillion.
In this market, honestly do a good job in software license, integrated development/report development/customized development, and operation and maintenance services. In particular, strengthen the operation and maintenance service and collect the operation and maintenance service fee. In fact, this business is very attractive. Look at SAP, the software license revenue has stagnated for many years, but the operation and maintenance service business revenue has been fat. Every year on January 1, when the business opens, there will be a large amount of guaranteed income. Many media force Chinese companies not to pay operation and maintenance service fees, but in fact, enterprises with more than 10 billion yuan have the money to pay operation and maintenance service fees. The service product sales team is also strong in promoting the sales of operation and maintenance services, and doing a good job in operation and maintenance services honestly. In fact, enterprises with more than 10 billion yuan are willing and able to pay operation and maintenance service fees.
In addition, let's talk about the system. Many organizations within the system belong to more than 10 billion yuan. Organizations within the system include: large and huge central and provincial state-owned enterprises, military industrial enterprises, central government and local governments (more than 30 provinces in China / more than 30 ministries in China).
Deepening reforms are being carried out in China: such as independent and controllable industrial chain supply chain, digital economic innovation, one enterprise, one enterprise/one enterprise, one enterprise. So although they are typical private deployments, their operation and maintenance model is actually not much different from the operation and maintenance of a SaaS cloud. I think of DingTalk’s learning powerhouse: China has 98 million party members, more than 7 million civil servants, and more than 50 million people who work in finance. So you can see the scale of this application, which is really not much different from a SaaS cloud.
