On the one hand, more people need to get involved. Since the Chinese IT industry is less developed than the internet industry, relatively speaking, more talents need to participate in cloud service business and play a role in this trend.

　　On the other hand, traditional IT companies are transforming themselves. For example, Kingdee has started to provide SaaS service. While we provide IaaS service for Kingdee’s Cloud Hub, Cloud Hub can bring convenience to more small and mid-sized enterprises as it continued to grow.

　　Business model matters more than technology?

　　While Some analysts point out that the future development cloud computing may no longer be driven by technology, but rather the business model, Wang thought it was still too early to jump to this conclusion. After all, cloud computing itself is driven by technology. Although technology may, in the short term, no longer be the most important standard for some companies when they choose cloud computing companies (since business model might matter more among top-tier cloud computing service providers that are all potent in technology), this might not be the case in the long run.

　　“On the one hand, we are still far from the peak of technological innovation and there remains huge room for the technological breakthrough. For example, in the case of cloud computing, there remains huge room for improvement in aspects such as computing performance, network performance, cost, video technology and AI technology, etc.

　　On the other hand, people no longer attach high importance to technology because major cloud service providers are all potent in technology. Therefore, their competition is more about business model than about technology.”

　　As a matter of fact, whether AWS or Alibaba Cloud, Tencent Cloud and Kingsoft Cloud, have all accelerated their pace to develop AI capability. On May 16th, Kingsoft Cloud and Intel entered into a thorough cooperation agreement and decided the two sides would continue to explore CPU customization, the application of Intelligent Ethernet Cards in virtual scenarios, the application of OPTANE storage medium in cloud computing and cloud storage sector and the application of FPGA in AI training and prediction.

　　Wang Yulin, CEO of Kingsoft Cloud (the person to the right of the photo) and Raejeanne Skillern, vice president of Intel Data Center Business Division, general manager of Cloud Computing Department, signed the Memorandum of Understanding on behalf of both sides.

　　Kingsoft’s secret in the era of industry internet

　　Nevertheless, a different operation principle has started to appear in the industry internet sector compared with the 2C sector. Efficient methods in the consumer internet sector, such as free usage, subsidy, traffic and entry proved to be inefficient in the industry internet sector.

　　However, Wang didn’t entirely agree with such opinion. The core value of internet lies in centering around users’ needs. The shift from PC internet to mobile internet actually resulted from the shift of users’ needs. To succeed, internet companies have to be able to identify users’ needs and develop proper products to satisfy such needs. This is the core behind various kinds of methods.

　　Some internet companies adopted methods such as free usage and subsidy because they identified users’ needs for such things and timely satisfied such needs. However, they are simply methods, not the core. As a matter of fact, if a company ignored the core and blindly adopted these methods, its efforts might turn out in vain.

　　In the era of industry internet, the core is still to be able to identify users’ needs. Besides, a company has to be able to seize the right timing, timely execute plans and make full use of the capital forces. In fact, these requirements apply to any industry.

　　“For Kingsoft Cloud, our top priority is to identify users’ needs. What do our clients need most in the era of industry internet? Lower cost, or better quality? As long as we properly identify users’ needs, we can adopt methods such as VCs and lose money in the short term. However, they may prove to be worthwhile for our development in the long run. The only difference is that clients of the industry internet are enterprises that are more rational when choosing services than individual consumers,” Wang explained.

　　In addition, enterprise clients won’t be blindly attracted by fancy marketing or huge subsidy, and they won’t grow as fast as individual consumers. In this case, we have to identify enterprises’ real needs and find out what attracts them most.

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　　[The article is published and edited with authorization from the author @Xu Xiao'an please note source and hyperlink when reproduce.]

　　Translated by Levin Feng (Senior Translator at PAGE TO PAGE), working for TMTpost.