Top of the Great Era

Chapter 2186 Self-sufficiency
Next, run the machine and test the samples.

The control group consisted of several mainstream servers on the market, including five domestic and five foreign ones.The price of foreign products is generally around 4000 US dollars, and the price of domestic brands is basically between 1 and 5 yuan.

The cost of this server developed by Ziweiyun is only 5000 yuan.

After the test, it was found that the performance of these models of servers is actually almost the same, in the same gear, and they are mid-range and low-end servers in the industry.

The most embarrassing thing is that after the machine ran the score, it came up with a ranking. Ziweiyun's server ranked third in the same category, and ZTE's server ranked second from last.

Mr. Shi's expression turned a little strange.

If I had known earlier, I would not have made this trip.

For the sake of his company's face, President Shi had no choice but to reveal some company secrets, coughed and said, "The market price of this ZTE server is 1, and the minimum order for large quantities can be reduced to 8. But if only Counting the cost of materials, the cost is actually not that high, about 1 yuan.”

Zhou Buqi hurriedly spoke for him, "Yes, the profit margin of this kind of product is usually extremely high."

Mr. Shi has a good understanding of the server field, so he gave a very comprehensive explanation, "In fact, the basic cost of domestic servers is similar, and the main competition is to see who has better technology and higher quality. The reason why the cost of materials will be the same as yours. There is a difference, because ZTE’s product is a branded machine, and yours is an assembled machine.”

Zhou Buqi suddenly realized, "It's just like assembling a computer and a branded computer! If you assemble it yourself, you can spend the same money to assemble a computer with better performance. Because branded computers have brand attributes, they must take care of better appearance design. A lot of cost is wasted on unnecessary accessories.”

Mr. Shi said: "This is almost the same meaning. There is another point, that is, if ZTE's servers are to be sold globally, there will inevitably be a backlog of inventory and greater investment in after-sales service. These need to be included in the cost of the product. Li. The cost of our product is about 1, including all expenses, and the lowest price in the market is 1."

Ziweiyun self-developed this server, because it is self-sufficient, so there is not so much trouble.

Produce as much as you need.

There is no such thing as stock at all.

Moreover, it is a modular design, and later maintenance will be more convenient and cost-effective.

This brand of ZTE phone cannot be designed in a modular manner.

Not only that, ZTE needs to maintain a huge sales team in order to sell its servers, as well as provide pre-sale consultation and after-sales service, especially when competing with competing companies for orders, it also needs to pay a public relations fee.

All kinds of things, all expenses will ultimately be placed on the product.

Ziweiyun's self-developed server is completely free from the troubles of these factors, and the saved expenses of these various links are actually lowering the cost of the server.

For ZTE servers, the material cost is 7000 yuan, the total cost is 1.1 yuan, and the purchase price for large quantities is 1.4 yuan.

Ziweiyun’s server costs 5000 yuan in materials, and eventually the server has to be moved into the cloud data center for installation. The total cost may be 5500 yuan.

It is equivalent to saving 1 yuan for one server!

Servers are fast-moving consumer goods in the cloud computing industry, and their life cycle is generally 5-7 years. When the time is up, they will be scrapped.Keep iterating, throwing away the old and replacing it with the new.Ziweiyun's plan is to establish a super cloud computing platform with 10 million servers around the world within 500 years.

After 10 years, Ziwei Cloud may have produced more than 1000 million servers in total, including those that have been continuously phased out and deployed in production.

1 unit saves 1 yuan, and 1000 million units saves 1000 billion yuan!

This is what self-study means.

Why is the same product selling well all over the world, Huawei's profit margin is frighteningly high, and Lenovo's profit margin is frighteningly low?The most important factor is that Huawei's products have more self-developed attributes.

Self-developed, the cost is low.

The cost saved is the future profit.

After visiting Ziweiyun's self-developed server, although there were some embarrassing episodes, Mr. Shi was still in a good mood.

Now feel at ease!
Ziweiyun's server can only be used by itself, and it has no competitiveness in the market.That kind of modular model can't be commercially used normally at all. Only when it is matched with Ziweiyun's proprietary server cluster processing system can it exert its maximum effect, and the threshold is too high.

That way, you don't have to worry about it.

The current low-end server market has become a red sea market, and all parties are fighting bloody.If Ziwei Xing also got involved, something bad might happen.

Everyone in the industry knows the legend of Boss Xiao Zhou.

As long as he wants to do, there is nothing he can't do.

Fortunately, Ziweiyun's server can only be used by itself and cannot be sold commercially, which is a good thing for the entire server market.

Mr. Shi was about to leave, and Zhou Buqi led a group of executives to send him downstairs.

While walking, President Shi smiled and said, "The domestic technology is already very mature in the development of low-end and mid-end servers. Your idea of ​​modularization is a more advanced innovation."

Zhou Buqi waved his hand, "It's mainly for our own cloud computing services, not market-oriented innovation."

Mr. Shi nodded, "Those foreign server giants are not having an easy time right now."

"Huh? What's wrong?"

"It's not competitive. As you saw in the evaluation just now, ZTE's $2000 server has similar performance to IBM's $4000 server."

"It really is!"

Zhou Buqi put on a look of sudden realization and almost laughed.

Similar performance?

In the evaluation just now, only Ziweiyun's self-developed server was ranked in the top five, ranking third, and the others were all foreign brands.

Among them, the top of the list is the IBM server.

The ZTE server that was evaluated at the same time was the second last.

Of course, the gap in performance at the same level cannot conceal the advantage of the gap in price.Among servers with the same specifications, ZTE is indeed inferior to IBM, but it is cheaper!

The price is only half of IBM!
Mr. Shi said in high spirits: "For servers with the same specifications, the cost of domestic servers is far lower than that of foreign brands, which creates a huge price advantage for domestic servers."

Zhou Buqi understood what he meant, "Doesn't that mean that in the server market, those international giants are going to stop? They are all dead? They will be replaced by our domestic servers?"

President Shi quickly corrected him, "I'm talking about low-end servers."

Zhou Buqi nodded, "Yes."

Mr. Shi: "Foreign companies have seriously lost their competitiveness in the mid-to-low-end server market. For products with the same performance, the price of domestic products is lower; for products with the same price, the performance of domestic products is better. Even IBM can't play Yes, I heard that the mid-to-low-end server business is going to be divested.”

Zhou Buqi felt the same way, "I'm so proud!"

Mr. Shi said in a deep voice, "However, in the field of high-end servers, there is still a big gap between China and them. Even with the same amount of investment, the products we produce are not as good as them."

Zhou Buqi said: "Take your time and develop slowly. The country has an unstoppable talent advantage and cost advantage. If one day the country also masters the technology of high-end servers, then this market will sooner or later belong to domestic server manufacturers. Don’t be in a hurry, but follow the law of technology and market development.”

There is no corner overtaking in technology, only corner overturning.

It must be accumulated slowly and iterated slowly.

是从1、2、3、4、5……的顺序慢慢发展，越来越高；要是前期的积累不足，上来就想从1跨越到100，那就只能是招摇撞骗。

ZTE is one of the rare excellent companies in China that is willing to do technology in a down-to-earth manner. It is not much worse than Huawei. It is precisely because of this respect that Zhou Buqi attaches great importance to President Shi's visit this time.

Mr. Shi got in the car and left.

Only then can Zhou Buqi say something behind closed doors to the executives of Ziweiyun, "No, the cost is still high, and we must find a way to keep it down!"

"what?"

Lu Guangkun was slightly taken aback.

Everyone else is used to it, and the request of the big boss has never been simple.

Zhou Buqi asked: "What is the localization rate of our server?"

Lu Guangkun said: "85%-90%."

Zhou Buqi said: "That is to say, 90% of domestically produced spare parts take up 50% of the material cost; the remaining 10% of imported spare parts take up the remaining 50%."

Lu Guangkun was very helpless, "There is no way to do this. Those semiconductor products can't keep up in China, so they can only be imported."

"This is not a long-term solution." Zhou Buqi shook his head, "In the future, Ziwei Cloud's global server deployment scale may reach 1000 million units, and new servers that are scrapped and updated every year may cost 200 million units. How much investment is it?"

Lu Guangkun opened his eyes wide, "You mean..."

On the other side, Zhou Feng has already spoken on behalf of the big boss, "Indeed, we must find substitutes for this part of the imported chips. Otherwise, half of the cost will be used for imports."

Zhou Buqi asked: "How difficult is it? Is it too big?"

Zhou Feng looked at Dr. Wang Jian, "Is it okay? The difficulty of server chips is lower than that of computer chips, and the difficulty of computer chips is lower than that of mobile phone chips."

Chief Technology Officer Dr. Wang Jian made the final decision, "The low-end server chips are just low-end server chips. If you really make up your mind to do it, the results will be available within three years! We are self-sufficient and do not commercialize it. This will be a huge R&D effort. Advantage."

Zhou Feng said: "I think it is possible. What we develop is a dedicated chip for our self-developed servers. This will be less difficult than the development of general-purpose chips in the market."

(End of this chapter)