Entertainment mogul: Starting his business with the internet

Chapter 516 is like cooking a delicious meal.

Xiao Jianguang perked up, immediately turned around, and strode forward: "Yes, I am Xiao Jianguang."

"Mr. Xiao, please come to this room. The experts on the bid evaluation committee have some questions that require your answers on-site." The staff member said in a businesslike tone.

“Okay, no problem.” Xiao Jianguang took a deep breath and followed the staff into the room that would decide the outcome.

The atmosphere in the evaluation room was solemn and dignified. Seven or eight judges sat around the oval conference table, each with a serious expression.

Xiao Jianguang quickly scanned the four corners of the room out of the corner of his eye, and could clearly see the surveillance cameras flashing red dots.

It is common knowledge that the bidding process for such a major project concerning the travel of hundreds of millions of people is extremely rigorous, and all actions are under surveillance.

A middle-aged man sitting in the middle pointed to the empty chair opposite him and politely said:
"Mr. Xiao, please have a seat. I am He Anbang, the head of this bid evaluation committee and the deputy general manager of China State Railway Group."

Xiao Jianguang took his seat and politely replied, "Hello, Mr. He, and hello to all the experts."

He Anbang picked up the technical proposal belonging to Tengda Technology, which was noticeably thicker than those from other companies, and patted it lightly.

He glanced again at the Alibaba Group's quotation document next to him, which was marked with an astonishingly low price, before looking up at Xiao Jianguang with an increasingly serious expression.

"Mr. Xiao, the review committee conducted a very detailed review of the technical proposal submitted by your company and generally gave it high recognition."

After a brief pause, I turned to the core part of the solution, "especially the distributed cloud computing architecture and the original dynamic resource scheduling algorithm, which are truly impressive."

It can be said that Tenda Technology has demonstrated world-class standards and is far ahead in terms of technological foresight and the targeted nature of its solutions.

"Thank you very much for your affirmation, Mr. He and all the experts." Xiao Jianguang felt a little relieved, but knew that the important part was yet to come, so he said a few polite words and then said no more, waiting for what was to come.

Sure enough, He Anbang changed the subject, placing the two documents side by side, pointing to the quoted price, and his voice deepened:

"The technology is good, and the solution is good. However, Mr. Xiao, Tenda's quote is simply too high! It's almost three times the price quoted by Alibaba Group!"
This is a national project that benefits people's livelihoods. We must be accountable to the people for every budget expenditure, pay attention to cost-effectiveness, and ensure that it can withstand auditing and historical scrutiny.

Therefore, I would like to ask Mr. Xiao, does your company have any room for further discounts based on this quoted price?
Could you please consult your company's decision-makers to see if you can further negotiate the price, taking into account the social benefits of the national project?

The pressure suddenly struck. Xiao Jianguang felt all the judges' eyes on him. His expression remained unchanged; he simply nodded slightly.

"Mr. He, your question is very pertinent. I fully understand the considerations of the state and the railway group regarding project costs."

However, significant price adjustments are beyond my authorized scope. I need to immediately consult with my legal representative, Chairman Song Ci, before I can give you a definitive answer.

He Anbang expressed his understanding, saying that for such a large project, it was indeed impossible for the on-site bidding representatives to have the final pricing power.

He gestured with his hand, "Sure, that's fine. Mr. Xiao, please make yourself at home. There's a small meeting room next door that's empty. You can go there to make a call and ask for instructions. We'll wait here."

Xiao Jianguang stood up, stepped into the quiet small conference room next door, and gently closed the door behind him, shutting out the outside world.

He strode to the window, took a few deep breaths, and then pulled out his phone, which had been kept on silent, from his suit pocket.

Fortunately, Chairman Song Ci did not have any important meetings or foreign affairs activities today, and the phone was answered after only two rings.

A concerned voice came from the other end of the phone: "Engineer Xiao, is it because the bidding results are out at this hour?"

Xiao Jianguang dared not delay and quickly reported the situation on the scene in the most concise and clear language possible, especially He Anbang's original words and requirements.

Finally, I'd like to add: "Chairman Song, the situation is more severe than expected; Alibaba's offer is abnormally low."

There was a moment of silence on the other end of the phone, then Song Ci's voice came through again, carrying a calm scrutiny: "I remember the company's final offer was three hundred million. So, according to you, Alibaba only offered one hundred million?"

“Yes, Chairman Song.” Xiao Jianguang’s tone was certain, with the conviction unique to a technologist. “Based on previous precise calculations, Alibaba’s offer will definitely result in a serious loss.”

The fixed costs alone, such as hardware and infrastructure maintenance and commercial software system licensing fees, would certainly exceed one hundred million.

Not to mention the huge costs of bandwidth and network fees, technical team personnel costs, and daily operating expenses.

The company's offer of 300 million is already based on high-specification technology and an optimized operating model, with only an 80% profit margin reserved, which can be considered a very reasonable price.

On the other end of the line, Song Ci responded almost without hesitation, decisively instructing, "Engineer Xiao, the price is negotiable. I am now officially authorizing you to make the final on-site quote based on the circumstances!"

I have only one requirement: overcome all difficulties and spare no expense to secure the 12306 project!
This is not just a project; it's related to the company's future strategic layout, and its significance far exceeds immediate profits. Do you understand?

The chairman's resolute order acted as a reassurance, instantly calming all of Xiao Jianguang's anxiety and uncertainty.

He immediately replied in a deep voice, "Understood! Chairman Song, please rest assured, I know what to do!"

After hanging up the phone, all of Xiao Jianguang's previous worries and anxieties vanished.

Now that the chairman has clearly defined the goal, disregarding temporary gains and losses and focusing solely on the result, there will be no further obstacles to securing this project.

The current challenge is to minimize losses for the company while meeting the judges' requirements and demonstrating Tengda's sincerity.

Adjusting his expression, regaining his composed and confident technical officer demeanor, he opened the conference room door and strode towards the bid evaluation room.

At the same time, Song Ci slowly moved her phone away from her ear. Seeing this, Zhang Yong, who was sitting opposite her, put down his teacup: "Is there a result for the railway group's bidding?"

Song Ci shook her head slightly: "The results aren't out yet; there's been a slight change. Alibaba submitted an ridiculously low price, and the judging panel has asked us to submit a second round of bids."

After a moment of silence, his tone was very calm: "Based on the current situation, it is estimated that this project will likely result in a loss of over 100 million yuan before it can be acquired."

Upon hearing this, Zhang Yong's expression softened slightly, and he comforted them, saying, "A loss of one or two hundred million is something our group can afford. Consider it as supporting national infrastructure construction and giving back to society."

Upon hearing this, Song Ci couldn't help but chuckle, a hint of worldly-wise mockery in his laughter: "It's not that I'm reluctant to suffer this small loss. Money, well, you can always earn it back after you've spent it."

I never expected that a giant like China Railway would be so frugal with its budget, complaining about being broke. It seems everyone has their own troubles.

As he finished speaking, his smile vanished, and his words became resolute: "Old Zhang, the 12306 project has strategic value far exceeding its apparent profit or loss. Even if it's given away for free, we must acquire it at all costs!"

Zhang Yong's face showed surprise; he hadn't expected the chairman to be so focused on this, even to the point of "disregarding costs." After a moment's thought, he voiced his question: "Since you're so determined to win, why not just offer a more competitive price? What if the initial quote is too high? Won't that mess things up?"

Song Ci was not surprised by Zhang Yong's doubts and patiently explained: "When dealing with large-scale national projects, we cannot simply use ordinary commercial competition thinking."

This is by no means a simple game where whoever offers the lowest price wins.

The evaluation criteria are comprehensive, taking into account factors such as technical solutions and company strength. There will definitely be a second round of bidding, and possibly even a third round of negotiations.

He sat up straight, his eyes shining: "Given an absolute technological advantage, if we quote a loss price from the start, it could easily trigger vicious competition."

"Secondly, and more importantly!" Song Ci's voice was steady and powerful. "There are many large-scale national projects. If the railway project loses some money today, what about the power system project tomorrow? And the water and transportation projects the day after?"
From a business perspective, national projects cannot ignore commercial logic and profitability; otherwise, what will support the group's R&D investment and the future of its workforce?

"That makes sense; I didn't think it through."

Song Ci's analysis convinced Zhang Yong that his insistence on taking over 12306 must be driven by extremely important strategic considerations.

He tentatively asked, "Chairman Song, what is the 'added value' of this project?"

"Good question!" Song Ci's eyes gleamed with fervor as she uttered two words with conviction: "Data!"

"The data from China Railway, especially the data generated by the 12306 system, is far superior to ordinary commercial data."

It is generated under extreme pressure and covers the most authentic and dynamic social operation data nationwide!

For future research in cloud computing and artificial intelligence, it is an inexhaustible 'data gold mine'!

Getting into the swing of things, Song Ci spoke eloquently: "Old Zhang, think about it, how valuable the data from 12306 can be for cloud computing systems to undergo?"

That's truly a test of skill and determination! The ticket purchasing process is incredibly complex: searching, reserving seats, payment, changing or canceling tickets, choosing routes…

The system will be forced to evolve top-tier capabilities to handle prolonged periods of extremely high load and to dynamically schedule intelligent resources!

Zhang Yong seemed to be deep in thought. Although he was not directly in charge of technology, as the group's CEO, he had a profound understanding of the core business.

One can imagine the astonishing levels of stability, elasticity, and efficiency that Tenda Cloud will achieve after being tested in a world-class scenario like 12306.

This is undoubtedly the most solid technological barrier when competing with Amazon AWS and Microsoft Azure in the global market in the future.

As Song Ci spoke, he became more and more excited, his words filled with inspiring anticipation: "And more importantly, this data is excellent material for training ultra-large-scale social simulation AI."

It includes multiple dimensions such as time, place of origin, destination, and composition of people, and can clearly outline the migration map of hundreds of millions of people during specific periods such as Spring Festival and National Day.

Based on this, we can conduct in-depth research on labor mobility, regional economic linkages, and tourism development!

This is not just about commercial value, but also about strategic value that empowers national macroeconomic decision-making!

"I see!" After Song Ci's insightful explanation, Zhang Yong fully understood the unparalleled importance of China Railway's data.

The technology and capabilities to handle such an extremely complex scenario as 12306 will be a game-changer when applied to countless other fields such as logistics scheduling, power grid distribution, and smart transportation.

After a brief pause, Song Ci exclaimed with emotion: "The core competitiveness of future top technology companies lies in the integration and mastery of three key elements: data, algorithms, and computing power."

For research in cloud computing and artificial intelligence, these three elements are interconnected and indispensable.

Noticing that Zhang Yong still seemed somewhat confused about the technical essence of the ternary relationship, I pondered for a moment and found a vivid analogy:
"Let me give you an analogy. Building an AI system is like cooking a top-notch dish."

He then held up three fingers, saying, "Data is like ingredients. The freshness and variety of ingredients determine the potential and ceiling of a dish."

An algorithm is like a recipe, a cooking method that determines how to turn ingredients into a delicious dish.

Computing power is like the kitchen stove, spatula, and the chef's skill and heat; without sufficient heat and suitable tools, even the best ingredients and recipes are just castles in the air.

Zhang Yong's eyes lit up, and he quickly grasped the concept, smoothly replying, "I understand! Data is the basic means of production, the source of vitality."

Algorithms are the soul and method for extracting patterns from data and making intelligent decisions; computing power is the engine and energy foundation that supports all of this.

Excellent algorithms can utilize data more efficiently and accurately, while powerful computing power determines how quickly and effectively massive amounts of data can be processed and complex algorithms can be run.

"That's a very accurate summary!" Song Ci gave a thumbs up in appreciation. "Simply put, the relationship between the three is: computing power determines 'how fast it can compute'!"
The algorithm determines how well it can compute, while the data determines what it can compute.

At this moment, Song Ci got up and walked to the window. The night outside had completely enveloped the city, and his pensive face was clearly reflected in the glass.

After a long silence, as if making a major decision, he slowly spoke, his voice not loud, but full of weight.

"In the second half of the year, I plan to launch the 'Hun Yuan' project."

Upon hearing this, Zhang Yong was deeply moved. The two characters "Hun Yuan" conveyed a grand vision, encompassing everything and representing the beginning of chaos, indicating that it was by no means an ordinary project.

He subconsciously sat up straight and asked cautiously, "'Hun Yuan' plan? Does it require the prior allocation of funds and resources?"

A huge pressure instantly welled up in my heart. The group is currently investing heavily in the research and development of its own mobile phone operating system, which is a money-devouring beast in itself.

The food delivery and ride-hailing sectors are poised to erupt into a fierce price war. As CEO, I'm constantly racking my brains to balance the budget and find new growth drivers.

Song Ci noticed Zhang Yong's brows furrow instantly and understood the pressure on his shoulders. She then waved her hand, indicating that he didn't need to be nervous.

"Relax, you don't need to sell your possessions yet. The 'Hun Yuan' plan is currently in the conceptual and preliminary research stage."

Currently, following WeChat, the group's next clear strategic focus is to enter the short video field.

As for 'Hun Yuan,' just know that this matter exists and put it on the top-secret agenda. Initially, you only need to make proper arrangements; specific resource allocation can be discussed later.

Zhang Yong breathed a sigh of relief and nodded solemnly: "Understood! I will keep a close eye on it and make the necessary preparations."

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(End of this chapter)