Cutting edge technology

On January 31, 2019, on the New Year's Eve of China, SAP released the "China Acceleration Plan", and plans to continue to increase investment in the Chinese SME market in the next five years. SAP, which has always been proud of the high-end market, has become the leader of the Chinese SME market. There is no such thing. Oracle's previous positioning is mainly enterprise-level high-end market, but cloud computing provides more possibilities for Oracle to enter SMEs and SaaS, and is currently expanding the SME market.

Unlike SAP and Oracle, as early as April 2018, Odoo, the world's most successful open source ERP vendor, chose a more grounded approach and cooperated with the leading wave of domestic IT companies to jointly develop the SME market.

Foreign giants have rushed to the layout of China's small and medium-sized enterprises cloud market, the card position war has been surging, who can win in the future?

International giants accelerate the re-launch of China's SME market

In the author's view, these software companies are so concerned about the SME market, and the Chinese government is vigorously promoting the SMEs to be inseparable . Driven by the digital transformation and the digital economy, cloud computing has been widely applied to various industries. The small and medium-sized enterprises that have been away from cloud computing have gradually become the "main force" of Shangyun.

Including leading companies such as UFIDA, Inspur, Kingdee and other domestic management software, as well as international giants such as SAP, Oracle, Odoo, etc., more and more software companies are investing in the promotion of small and medium-sized enterprises on the cloud. Strive to become an influential and dynamic cloud computing company. There are three main reasons: 1. Adapting to the general trend of enterprises on the cloud, SMEs have become the strategic point of the company; 2. In the face of complex economic environment, SMEs will become new growth points; 3. Including BAT The Internet companies are accelerating the layout of the industry Internet and rushing to the SME market.

Among them, SAP and Odoo are the most special ones. Both companies are sourced from the European market. SAP dominates the large enterprise market with mature software packages. In order to meet the needs of large enterprises, SAP is more traditional and complex in product technology architecture; Odoo is an internationally renowned SME software vendor. Committed to providing open source ERP platform for SMEs, the technical architecture is more flexible and concise.

SAP and Odoo are distinctly different in terms of target customers and technical architecture. SAP's suite of software is better at solving large enterprise problems, and Odoo's open source architecture is more suitable for SMB applications. Odoo also won the "SAP killer" title.

For the Chinese market, SAP has been rooted in the Chinese market for many years and has a large voice in the large enterprise market, but it has not made breakthroughs in the SME market; although Odoo has also entered China for many years, In the past, it has been relying on partners to expand the market. In order to accelerate the market in China, Odoo chose to establish a joint venture with Inspur in 2018 to jointly expand the SME market.

It can be said that it is also helping Chinese SMEs to go to the cloud. Odoo and SAP also have obvious differences in strategic deployment, product creation and market layout. Next, let the author analyze the difference between the two. .

China as a strategic market The difference in landing methods

In recent years, China's digital economy has developed rapidly and has become an important engine for economic transformation and upgrading. Statistics show that in 2017, China's digital economy reached 27.2 trillion yuan, a year-on-year increase of 20.3%, accounting for 32.9% of GDP. At the same time, the Ministry of Industry and Information Technology's "Guidelines for Promoting Enterprise Cloud Implementation (2018-2020)" also clarified the goal of 2020: cloud computing should be widely used in production, management, and management of enterprises, and the country is newly added to the cloud. There are 1 million enterprises. Such a large scale of digital economy and market opportunities for enterprises on the cloud make the Chinese market a strategic market for many multinational companies.

Taking SAP as an example, in recent years, as the contribution of the Chinese market has increased, SAP has regarded the Chinese market as its “second hometown”. While actively serving the digital transformation of large Chinese enterprises, SAP has long set its sights on the SME market, such as launching solutions for SMEs, developing product development for SMEs in China, and developing SME market partners.

Odoo is no exception. In the past few years, Odoo has used its open source ERP to help Chinese SMEs reduce the application threshold of management software by working with local partners.With open source technology, Odoo's advanced system architecture can meet the out-of-the-box needs of small and medium-sized enterprises, and can also meet the highly customized needs of medium and large enterprises.

However, the same definition of China as a strategic market, SAP and Odoo's approach is significantly different. First of all, SAP has long been focused on the large-scale enterprise market in China, but it has not made breakthroughs in the SME market. Its solutions for small and medium-sized enterprises have always been in an awkward situation; in comparison, Odoo with open source ERP as the core can better meet the individual needs of SMEs.

Secondly, SAP relies on the strength of its partners to achieve market coverage in the SME market. In order to accelerate the development of the Chinese market, Odoo chose to establish a joint venture with Inspur Cloud ERP to provide SaaS services to SMEs. Odoo has mature open source cloud ERP products and advanced SaaS concept. It is the most widely used ERP software for European SMEs. As the top three domestic enterprise management software, Inspur not only has a fully autonomous and controllable solution, but also has IaaS. PaaS, SaaS three levels of overall solution service capabilities. In this way, the joint venture company can rely on the multiple advantages of both parties in technology and market to provide one-stop solutions for SMEs. This cooperation model is closer than partners.

In fact, for multinational enterprises, because the demand of SMEs is varied, the budget is low, and the quality of personnel is uneven, the SME market tends to be large and low-efficiency. How to expand the Chinese market more quickly and effectively? It is a big problem. In recent years, many multinational corporations have changed their methods of relying on their own strength and began to adopt a joint venture with local Chinese companies to accelerate the expansion of the Chinese market. The way Odoo and Inspur set up a joint venture company undoubtedly conformed to this trend and is expected to achieve even better results.

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