Being passively beaten has never been Wang Yi's style.
On the contrary, striking first to prevent a hundred blows is Wang Yi's way!
As for strategy, it's an all-out offensive, overwhelming the master with wild punches!
Anyway, Xingyi Technology is not listed, so it's not afraid of negative news and is not affected by stock price fluctuations.
If it were a listed company, just Baidu's ban could evaporate a significant portion of Xingyi Technology's market value!
But since it's not listed, it doesn't matter; the only impact is on the current user growth rate.
On this point, Wang Yi is confident in breaking the deadlock, even turning the tide in an unfavorable situation!
But Baidu is different; as a listed company, any impact on revenue in any area will quickly reflect in the stock market, causing stock prices to plummet and market value to evaporate!
This is Wang Yi's opportunity!
After all, those with bare feet are not afraid of those wearing shoes!
And the grudge from today's ban, Wang Yi has also noted.
Currently, Xingyi Technology is still in its nascent stage; many businesses have not yet started, making it unable to compare with BAT giants.
Even if banned by Baidu, it temporarily lacks the ability to retaliate with a ban.
But what the future holds is hard to say.
When Xingyi Mobile's scale expands next year and its users surge, Baidu-affiliated products will be the first to be sacrificed!
Today Baidu bans Xingyi Video; in the future, Xingyi Mobile will comprehensively ban Baidu Browser, Baidu Tieba, Baidu Maps, and other Baidu "family bucket" products!
Wang Yi has already thought of the reason: infringing on user privacy and security, and collecting user data!
This reason alone is much stronger than Baidu's rotten excuse of "sensitive content" for banning Xingyi Video!
Wang Yi will temporarily remember the account of the ban.
As the saying goes, a gentleman's revenge is best served promptly!
For now, he will collect a few waves of interest; later, when he grows stronger, he will counter-ban Baidu!
To this end, many businesses planned for next year and the year after must be fully accelerated.
For example, IDC data centers!
Song Sining understood Wang Yi's meaning:
"Chairman, are you planning to establish data centers in Jizhou or Dao City?"
Wang Yi nodded:
"Yes, add the data center project to the tripartite talks in a few days. See which side is suitable and which side can secure favorable policies!"
In his previous life, Jizhou was also in the first tier for big data and possessed a supercomputing center.
Furthermore, Inspur, one of the server giants, is located in Jizhou, next to Meiyou Science and Technology Park.
In this regard, Jizhou still has significant advantages.
There's no other way; current servers, if not from Inspur, can only be selected from European and American brands like HP, IBM, Dell, Cisco, etc., which is definitely aiding the enemy!
As for Huawei servers, the project was only initiated in 2010, and it would take a few years to have output.
However, just as its shining moment began, it was critically hit in 2016.
Without Intel's license, the Kunlun server team had to be disbanded.
Furthermore, servers were not profitable, and there was a lack of consensus among senior management.
Subsequently, Huawei servers were sometimes independent and operated separately, and sometimes integrated with cloud services, with unsatisfactory development.
Coupled with subsequent unforeseen circumstances, they had to package and sell the server business to the Suzhou State-owned Assets Supervision and Administration Commission in 2020 for 60 billion RMB.
However, an accident occurred just before signing the contract, forcing them to abandon the deal.
Huawei could only search for new buyers again, eventually being acquired by Nanhe Province, but at a discounted price of around 40 billion, paid over several years.
With this capital, Huawei barely gained some extra "winter coats" to survive the cold, which was not easy.
Currently, the entire server market is dominated by foreign giants such as HP, IBM, and Dell.
Coupled with the price war suppression from foreign giants, domestic server manufacturers can only survive in the cracks.
For the same product, IBM is fifty yuan more expensive than domestic servers like Inspur; who would still buy domestic brands like Inspur?
As for further price reductions?
Costs do not allow it.
Servers are enterprise-oriented, with a limited number of customers and thin profit margins.
Whether it's Huawei or Inspur, the gross profit margin for servers is around 10%, with a net profit of only 2%!
Coupled with the suppression and price wars from foreign giants, even after arduously developing a generation of products, insufficient orders made it difficult to break even, making competition impossible!
Yet, despite this situation, domestic server brands did not give up and stubbornly survived.
During this process, many brands succumbed due to various reasons like imperial bans and suppression.
Many brands also managed to overtake and defeat international giants.
For example, Inspur, after years of development, later became number one in the country and second globally.
As for many domestic servers using Intel, AMD, and Nvidia chips, there's no way around it.
Initially, domestic server chip performance was insufficient, so purchasing from abroad was unavoidable.
Just like domestic mobile phone processors in 2011, all used Qualcomm, Nvidia, Samsung, and even the Huawei P1 used a Texas Instruments processor.
Subsequently, domestic server chips achieved breakthroughs, and domestic server manufacturers like Inspur also adopted domestic server chips such as Kunpeng, Phytium, and Hygon.
It was the rise of domestic servers that led to a continuous decline in volume for international giants like IBM.
In 2013, IBM's revenue declined by 30%, and it began to sell its server business externally for $6 billion.
IBM has a habit: any business with a profit margin below 40% will be directly cut and sold by IBM!
Finally, in 2014, Lenovo acquired IBM's server business for $2.5 billion, causing a global sensation.
That same year, Lenovo also acquired Motorola's mobile phone business.
Lenovo's PC business + IBM's server business + Motorola's mobile phone business; at this point, Lenovo's business empire was completely established.
It was thought that in the server and mobile phone sectors, Lenovo could replicate its PC success, grow larger and stronger, and create new glories.
However, servers are a technical business.
Lenovo had IBM's industries and infrastructure, but without sufficient R&D capabilities and technical reserves, it was still difficult to achieve success.
As for IBM's R&D team and technology... most of it was in the hands of imperial powers, and not easily utilized.
More importantly, Europe and America's strong R&D capabilities stem from an early start, decades ahead of us, naturally giving them a lead.
But once we catch up, and then compete in subsequent development, Europe and America will be finished; they really can't compete with domestic products!
Like 5G basebands, Huawei completed them in 2018, ranking first globally, far ahead.
But what about Apple?
It acquired Intel's baseband business, assembled global elites, and invested heavily in R&D, but Apple's 5G baseband fails year after year, with no end in sight...
By the time Huawei develops its 6G baseband, Apple's 5G baseband will probably be just about ready!
Lenovo's own servers were underperforming, and IBM's server R&D capabilities couldn't keep up with Inspur, resulting in annual losses...
However, the acquisition of former international server giant IBM also signaled a major change in the server industry: the era dominated by European and American server giants completely ended, and the era of the strong rise of domestic servers arrived!
This time, Wang Yi intends to make this turning point come faster and earlier!
Compared to mobile phone chips, servers are equally important, even more so.
Mobile phone chips are mostly for civilian use; being one or two generations behind isn't a big problem.
But servers are related to AI, to cloud computing, and to big data!
These are all top priorities.
The future is a competition of AI, a competition of computing power!
Powerful servers and server chips are the foundation!
Wang Yi plans to lay out early, allowing domestic servers, cloud computing, and AI to rise ahead of schedule!
The breakthrough point lies with Inspur!
Facing the price wars and fierce suppression from European and American giants, other domestic server giants currently either haven't found a way out or their future is uncertain.
And Inspur, in a situation with no money and no people, still vigorously pursued R&D, carving out a unique path!
Inspur knew that when it came to brand, cost, and price wars, domestic servers couldn't beat European and American giants.
So, they focused on R&D while also competing on service!
Inspur discovered that different major clients had different server needs.
Standard servers, being uniform, were increasingly unable to meet the needs of major clients; customization was the way out.
But European and American server giants were high and mighty, offering mediocre service, let alone customizing for major clients, which was simply unrealistic.
So Inspur seized the opportunity, directly collaborating deeply with major clients like Alibaba and Baidu, launching a customized server business!
Whatever product the customer needs, I will develop, providing precise customization.
Serving one major client requires 21-22 positions, and each position might require several people.
To this end, Inspur directly formed a CMT (Key Account Service) department with over a hundred people.
From the production chain to customer service, they went all out, using a platform + module approach to rapidly iterate.
Whatever server a major client needed, they could deliver in 9 months!
It was precisely this unique Inspur model plus powerful R&D capabilities that allowed Inspur to win numerous major clients globally, not only surpassing the Lenovo + IBM combination but also becoming number one in the country and second globally!
Wang Yi is very optimistic about such an enterprise that understands flexibility, possesses formidable R&D strength, and doesn't mess around.
Subsequent strategic cooperation, or even investing and becoming a major shareholder of Inspur, would not be an issue.
Like BYD, such an enterprise, willing to invest in R&D, capable, and promising, is worth Wang Yi's long-term investment!
Once he becomes a major shareholder of Inspur, Wang Yi can promote the integration of both parties' resources.
In previous years, Xingyi Technology purchased a large number of Inspur servers and even co-developed servers.
A few years later, when Xingyi Semiconductor is established and launches server chips, Inspur can also procure Xingyi Semiconductor's server chips.
The process requirements for server chips are somewhat behind those for mobile phones.
Even in 2020, the most advanced process for server chips was 14nm!
In 2011, server chip processes were mainly 55nm and 40nm.
A few years later, Xingyi Semiconductor might not be without hope of producing them!
Xingyi Semiconductor's server chips + Inspur server architecture and systems could be considered a powerful alliance!
After some thought, Wang Yi finalized the plan:
"Sining, based on the industrial layout distribution, barring any surprises, the Xingyi Data Center will also be located in Jizhou."
"Indeed, with Inspur there, Jizhou has a great advantage in this area."
Song Sining agreed wholeheartedly:
"Then, having only one smart TV factory in Dao City, isn't that a bit unfair?"
Wang Yi smiled:
"Most likely, both the smart furniture factory and the smart TV factory will be located in Dao City. And the smart tablet factory, the big data center, and the mobile phone factory already agreed upon will all be located in Jizhou. This way, both sides will be roughly balanced, and there won't be any more issues."
Song Sining's eyes lit up:
"Yes, this is better. Dao City has white goods industrial belts like Haier and Hisense, making it more convenient for us to develop smart home products there."
Wang Yi changed the subject:
"The data center is a big matter; you should emphasize it and see if we can get more policy support."
The construction cost of a data center is considerable, and its subsequent operating costs are even more of an issue.
Whether there is policy support makes a big difference.
Even in 2011, big data, while not as formidable as a decade later, was still of considerable scale.
For example, Facebook currently has over 900 million global users and nearly 150,000 servers.
Intel also has 75,000 servers.
And Baidu, the current leader of BAT, has 100,000 servers.
100,000 servers are currently sufficient for Baidu, but in a few years, with the massive explosion of mobile internet, a surge in netizens, and the launch of various cloud services, 100,000 servers will be completely inadequate, necessitating the continued construction of new data centers.
Wang Yi remembered that in his previous life, Tencent's servers exceeded 1 million units in 2019.
Baidu's server count also exceeded one million in 2020.
And Baidu's goal for 2030 is to surpass three million units!
Tencent, on the other hand, will only have more, likely four to five million units!
Similarly, Xingyi Technology's data centers will only be more numerous than Baidu's.
Even the first data center must be built with a capacity of 100,000 servers, and subsequently, a second and third data center will need to be invested in and built!
A data center with 100,000 servers, if calculated at a PUE (Power Usage Effectiveness) of 2.5, would consume approximately 657 million kilowatt-hours of electricity annually.
Even if the PUE is reduced to an excellent level of 1.36, annual electricity consumption would still be 357 million kilowatt-hours!
If there are no preferential policies from the local government and tiered electricity pricing is applied, where one kilowatt-hour costs about one yuan, the annual electricity bill alone would be 357 million yuan!
But if the local government offers preferential policies, such as reducing the electricity price for data centers to 50 cents, it could save over 170 million.
If it's discounted to 30 cents per kilowatt-hour, over 200 million could be saved!
Saving 200 million in electricity costs per year means 2 billion over ten years.
It's truly not a small sum of money.
Song Sining understood Wang Yi's meaning:
"Don't worry, Chairman, I'll bring this up on the 15th. But regarding the data center, should we inform Director Hong first? This way, the management committee can receive the news earlier, prepare in advance, and also allow them to prepare preferential policies sooner!"
Wang Yi's eyes lit up:
"Sining, that's an excellent idea. If we only propose it on the day, policies won't have time to be prepared. Informing them in advance makes it convenient. In two or three days, if the city is truly committed, the policies will be in place."
Official efficiency can be very fast or very slow.
It all depends on whether the project is good and whether the officials care.
Like the Tesla Gigafactory in Shanghai in his previous life, it achieved groundbreaking, production, and delivery all in 2019!
Without strong support from Shanghai behind it, it would not have been realistic.
"Alright, Chairman, I'll just casually mention it then,"
Song Sining said with a smile.
"By the way, if Director Hong asks about the scale, what should I say?"
Wang Yi smiled:
"The larger the scale, the more appealing it is to Jizhou, and the better the policies will be! Just tell Director Hong that Xingyi Technology's first data center is not very large, just about 100,000 servers."
Song Sining fell silent: "..."
Just 100,000 servers!
Baidu, which currently has the most servers nationwide, only has 100,000!
However, she would say whatever Wang Yi told her to say.
"Okay, I'll just casually mention it!"
After the call ended, Song Sining decisively went to the management committee and met Director Hong.
"President Song, please sit down. You're here for the tripartite talks on the 15th, aren't you?"
Director Hong said with a smile.
Song Sining nodded:
"Yes, Director Hong, are we directly finalizing the results this time?"
"Yes, the provincial government reprimanded the representatives of both our cities, telling us to finalize quickly and fully support Xingyi Technology, so as not to delay the construction and development of Xingyi Technology's factories due to disputes!"
Director Hong gave a wry smile:
"As for the distribution strategy, it will be based on the industrial distribution of the two cities. Now that the Xingyi Mobile factory is located in Jizhou, the tablet factory and mobile phones are too similar, so it will also be located in Jizhou.
Dao City has Hisense and a TV industry belt, so the smart TV factory will be located in Dao City. But the final smart home factory is still undecided, with both sides competing for it."
Song Sining understood in her heart and couldn't help but say,
"Oh, having too many factories is also troublesome. Chairman Wang also wants to build a cloud data center, but doesn't know where to put it."
"Cloud data center?"
The speaker had no intention, but the listener paid close attention.
Director Hong's eyes widened:
"President Song, is this true?"
Song Sining said noncommittally:
"Currently, Xingyi Technology's businesses are increasing, and many require servers. Renting them is not secure, so it's better to build our own data center."
"Yes, that makes sense. Xingyi Technology's data center must be built!"
Director Hong smiled; compared to a smart home factory, a data center was clearly more appealing.
As long as they could secure the data center, what if they gave up the smart home factory to Dao City?
Data centers are the truly high-end facilities!
"President Song, the Xingyi Data Center must be built in Jizhou. We have Inspur servers in Jizhou, which can provide comprehensive support. We also have a supercomputing center under construction, which will be in the first tier nationwide for big data in the future. Jizhou will definitely not disappoint Chairman Wang!"
Listening to Director Hong's earnest words, Song Sining smiled slightly:
"I will convey Director Hong's intentions. But the final decision still rests with Chairman Wang. Of course, Chairman Wang has also prioritized Jizhou."
Director Hong understood Song Sining's meaning and said with a smile:
"Rest assured, Chairman Wang trusts his hometown, and his hometown will certainly not let him down. I will report this immediately and definitely strive for the best policies. By the way, what scale are you planning?"
"Not a large scale."
Song Sining said blandly, and Director Hong felt a bit disappointed, but then he heard Song Sining say:
"Chairman Wang said, it's just the first data center, so about 100,000 servers!"
"What? 100,000 servers!"
"You call that 'not a large scale'?"
Director Hong felt like cursing.
What a damn big shot.
This scale would surely rank first nationwide, and among the top ten, or even top five globally!
You say it's not a large scale?
Ridiculous!
But then, Director Hong got excited.
If it's truly this large in scale, that would be amazing, and they could definitely secure the best policies!
Song Sining continued:
"Chairman Wang said that the future is the era of cloud services, the era of big data. In the future, all resources and information will be stored on cloud services. With the popularization of smartphones, the mobile internet is destined for a massive explosion.
100,000 servers are enough for now, but in three years, 200,000 won't be enough, in five years it will need 300,000, and in ten years, it's estimated to be one million!"
"This..."
Director Hong was startled:
"Will cloud services develop so quickly in the future?"
"Yes!"
Song Sining said, leaving it at that:
"Director, please get busy. We'll discuss the details on the 15th."
"Alright, President Song, take care!"
Director Hong rose to see her out.
"Director Hong, please stay."
Even after Song Sining left, Director Hong remained in shock, taking a long time to recover, muttering to himself:
"If big data is going to develop this rapidly, increasing tenfold in ten years, then Jizhou cannot miss this opportunity!"
"But I can't be reckless. I should ask a professional first."
Director Hong immediately made a call:
"Old Chen, how have you been recently?"
"Very well. You're such a busy director, how do you have time to think of an old man like me?"
"Haha, it's just been a while since I've heard your teachings, and I've felt uncomfortable all over!"
"Oh, cut it out! Just get to the point if you have something!"
"Don't say that, I actually do have a question I'd like to ask you,"
Director Hong chuckled:
"Old Chen, big data is developing rapidly right now. Baidu currently has 100,000 servers. How many do you think it will have in five years, and in ten years, given the current momentum?"
"This question..."
Old Chen thought for a moment:
"A good question!"
Director Hong: "..."
"In five years, if Baidu is still the leader of BAT, at least 300,000 units. In ten years, it might be 900,000 to one million! But if Baidu encounters major problems, that's another story."
"I understand, thank you, Old Chen. I'll treat you to a drink another day!"
"Another day? When?"
Old Chen became interested.
"After I finish being busy!"
Old Chen: "..."
Hanging up the phone, Director Hong sighed:
"Old Chen, it's not that I'm unwilling to part with good wine; it's that your body can't handle it. If something unexpected happens from drinking, my sin would be great!"
Subsequently, Director Hong picked up his bag, called the driver, and headed straight for the compound.
Since both Old Chen and Chairman Wang said that big data would grow tenfold in the next decade, there's an 80% chance it will be true.
Jizhou cannot miss this wave of big data opportunities; they must go all-in!
Moreover, the tripartite talks to finalize the results are on the 15th, so policies must be secured as quickly as possible.
This way, Xingyi Technology's data center can be kept in Jizhou!
After all, that's a large cloud data center comparable to BAT's top player!
Indeed, in 2011, when mobile internet was just rising, PC was still dominant, and Baidu was the big brother.
But once mobile internet rises, Tencent and Alibaba will be kings!
At that time, Baidu will be completely left behind, replaced by ByteDance, the emerging hegemon!
In the afternoon, Jian Ziyan approached Wang Yi:
"Chairman, everything is ready. Should we counterattack now?"
Wang Yi waved his hand:
"No rush, let the bullets fly for a while."
Jian Ziyan understood Wang Yi's meaning:
"Chairman, you want to let the situation continue to ferment, and then make a strong move when it reaches a certain point!"
"Teachable youth!"
Wang Yi patted Jian Ziyan's head, feeling very pleased.
Jian Ziyan's cheeks flushed slightly, and her gaze towards Wang Yi was somewhat evasive:
"What do these sudden actions mean? Is it flirtatious?"
"But what does that look of an old father's satisfaction mean?"
Jian Ziyan was speechless.
Wang Yi, however, withdrew his hand, not thinking much of it at all.
Baidu had only banned it for half a day, and the widespread anger of users was just beginning.
Many people were still at work and didn't know about it.
It would be better when more and more users are affected by evening or even tomorrow, and everyone knows about it!
If they counterattacked now, the effect would be mediocre, and the anger level wouldn't be high enough.
Sure enough, by evening, more and more netizens discovered that searching for Xingyi Video on Baidu yielded no results!
Copying the link to Xingyi Video and trying to open it resulted in a message indicating suspected sensitive resources and prohibited access!
This left everyone puzzled.
After some investigation, they learned that Baidu had banned Xingyi Video due to vicious competition for iQiyi!
Immediately, many people were furious, condemning Baidu online, criticizing Baidu, and even boycotting Baidu.
Similar posts continuously appeared, not only on Meiyou Social Square but also some on Weibo.
Even on the currently popular Baidu Tieba, there were many similar posts.
This situation was quickly reported to Li Yan.
Li Yan smiled faintly, but was completely unconcerned:
"Baidu Tieba is the hottest Tieba right now; just block relevant keywords and delete all posts!"
"Yes!"
The subordinate quickly acted, and in just a few minutes, the entire Baidu Tieba was cleansed; there were no more posts criticizing Baidu, and even posts discussing the matter were all deleted.
Li Yan smiled faintly:
"Xingyi Technology should just focus on making mobile phones. Why bother making a video platform, and doing it so well? It's hitting iQiyi hard. How can we let that happen?"
"Of course, Xingyi Video must be banned, destroyed, and then its video business acquired at a low price!"
BAT launches over a dozen new projects every year, but most fail!
Failed businesses, if they have any value, are sold and acquired.
After all, the money has been spent, so getting some of it back is better than completely wasting it.
For example, in the search field, to compete with Baidu Search, Alibaba acquired Yahoo China in 2005, but it developed poorly and is about to close.
The related business will likely be sold to Yahoo Empire.
There's also Alibaba's e-commerce Tao Nihong, which was just founded last year and cooled off this year; it will probably be abandoned next year.
The same goes for Tencent Wenwen, QQ Group, and Souba.
Baidu's social software, Baidu Shuoba, was founded last year and fizzled out this year.
Baidu Space, Baidu Hi, and the two major e-commerce platforms, Baidu Youa and Lekutian, were also failed products!
One can only say that BAT has strong financial resources, daring to try and daring to fail.
Launching ten new businesses a year and having seven fail is normal.
Eventually, the valuable ones are acquired, and the worthless ones result in complete loss.
Similarly, in Li Yan's view, facing Baidu's ban, Xingyi Video would also be a failed product for Xingyi Technology.
However, the film and television copyrights acquired by Xingyi Video have long terms, many are permanent exclusive broadcasting rights, and its H.265 technology is also very advanced!
All have acquisition value.
"Originally, I wanted iQiyi to acquire PPS, but now it seems acquiring Xingyi Video is clearly more suitable!"
"Let's see how long Xingyi Video can last. Once it can no longer hold on, we'll initiate acquisition negotiations!"
Li Yan smiled faintly, his ambition burning like fire.
Crippling competitors and then swallowing them—that's how BAT grew!
Online public opinion continued to ferment, but Wang Yi did not make a move; instead, he was sleeping soundly, holding Lin Shu.
Li Yan, however, frowned slightly:
"There's been no counterattack all day. Is Xingyi Technology unable to fight back? Or are they preparing for a big move? Chairman Wang doesn't seem like the type to sit idly by!"
(End of Chapter)