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An Chang 2018 revenue of 319 million yuan, Tencent Cloud is its two shareholders and major customers

via:博客园     time:2019/4/26 21:32:28     readed:214

In April 2019, Anchang Network released the 2018 annual report. The annual report shows that the company's revenue in 2018 is 319 million yuan, which is 45.6% higher than the 219 million yuan revenue in 2017. The net profit attributable to listed shareholders in 2018 is still In a state of large losses.

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At the same time, it is worth noting that with the expansion of the overall business scale, its core business hybrid cloud revenue of 198 million yuan in 2018, accounting for 62.18%; cloud connection revenue of 81.64 million yuan, accounting for 25.63%; cloud service revenue of 38.22 million Yuan, accounting for 12.19%.

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Income analysis by product

Combining business data and market performance analysis, it basically reflects the hopes and pains of Anchang's transformation into a new generation of cloud management service business. On the one hand, it firmly strengthens R&D investment and sales in the field of cloud technology, and expands market share and Scale, on the other hand, speed up the adjustment of existing business structures.

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In fact, in terms of the growth rate of operating income that reflects the company's growth, Anchang's 2018 operating income growth rate reached 45.4%, much higher than 26.54% in 2017. Tencent Cloud is its third largest customer and contributed 11.11 million yuan in revenue in 2018.

In July 2018, Anchang Network received Tencent's strategic investment of Tencent, and Tencent became its second largest shareholder with a shareholding ratio of 16.63%.

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Anchang Network also entered the field of cloud native application development and cloud operation and maintenance management with the strategic transformation of Tencent to ToB business, and thus evolved into a new generation of full-stack management service providers. The company's vision is also from the leading position of China. The three-way neutral cloud management service provider is updated to “China's leading cloud native technology service company”.

At present, the global cloud computing industry transformation has entered a critical stage. With the monopoly of Kubernetes and Docker in 2018, cloud native application development and operation and maintenance management began to mature. Software devours hardware, cloud services devour software, and eventually will be swallowed up by full-stack management services! This is the conclusion of the American Technical Service Industry Association (TSIA), which has long studied the technology services industry. TSIA has proposed the next model of MSP management services since 2014: Managed XaaS full-stack management service, which manages all enterprise cloud assets and traditional IT assets to third-party service providers, including cloud native applications. Development operation and maintenance management.

After long-term follow-up research, TSIA believes that the financial model of full-stack management services is better than management services, while the financial model of management services is better than cloud services. Full-stack management service providers will not only stand at the highest end of the cloud industry chain, but also have the highest return. Cloud business model. Forrester and Gartner's research also reflects this trend: full-stack management service providers will be the next-generation MSP model. As one of the few cloud management service providers in the Chinese market, Anchang Network is exploring the next generation of MSP model to contribute to China's full stack management service sample.

Full stack management service:Next generation MSP mode

The next generation of MSP models is a relatively frontier research area. There are currently three research reports available: Gartner Public Cloud Infrastructure Professional and Management Services 2019 (Magic Quadrant for Public Cloud Infrastructure Professional and Managed Services, Worldwide 2019), TSIA's 2019 Management Services Annual Report (2019 State of Managed Services and XaaS) ), and AWS commissioned Forrester to study the economic impact report of APN partners.

Among them, Gartner and TSIA's 2019 report updated the topic, reflecting the market's cognitive evolution of management services. Gartner's Magic Quadrant report was originally called “Public Cloud Infrastructure Managed Service Providers”, and the change in 2019 reflects the expansion of cloud management service providers from IaaS to IaaS+PaaS and applications. Development of operation and maintenance optimization, which extends the original infrastructure management services to the professional service areas of cloud native application development integration. The TSIA 2018 Annual Report was called “State of Managed Services” and there was no “XaaS” at the time.

So, what exactly is the next generation of MSP? Take a look at the samples provided by AWS. As early as 2017, AWS commissioned Forrester to conduct an interview with the next generation MSP business model of AWS's eight managed service partners, resulting in a three-year economic model. In the next-generation MSP business economic model, the gross margin of AWS Managed Services partners increased from 42% in the first year of the first year to 50% in the third year, while operating profit increased significantly from 4% in the first year to 36% in the third year, the return on investment reached 144%!

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Three-year financial model for the next generation of MSP

In the business model, the next generation of MSP's business scope includes: 22% of management services; 22% of systems and software initial design, refactoring, migration and deployment; 39% of systems and software traceability design, refactoring, Migration and deployment; 7% AWS cloud sales and support; 6% value-added IP; 3% strategic consulting, planning, evaluation and recommendations; 1% third-party application sales.

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The main business components of AWS's next-generation MSP

The Forrester study points out that MSP is important because companies often use one vendor to design workloads, another vendor develops these work applications, and another vendor operates, often losing the enterprise at different stages of digital or digital transformation. Continuity. When MSP intervened in the early stage of the enterprise, the accumulated knowledge about enterprise business and IT was very important for the digital construction of the whole enterprise in the later stage. For enterprise cloud and digitization, MSP must have comprehensive and systematic capabilities with capabilities at every stage of the digital lifecycle. Because MSP has a deep understanding of the business and IT environment of the enterprise, it can predict the problem, so the next generation of MSP is more proactive than traditional MSP and can be responsible for the full stack of services and customer experience. Successful next-generation MSPs require a combination of professional services and managed services, including cloud resource resale, business support, third-party application sales, value-added IP development and resale, and cloud native development.

In terms of professional services, Forrester Research believes that the next generation of MSPs typically begins with providing customers with strategic consulting and understanding of the desired business outcomes, evaluating existing infrastructure and operations, and building the best cloud strategy including DevOps transformation. After that, there are advantages and opportunities to take over the subsequent design, construction and migration work, which often lasts for several years and millions of dollars in service. In Forrester's three-year economic impact study, professional services accounted for 64% of the total gross profit of MSP.

In terms of operation and maintenance services, it is basically the traditional ITSM and optimization management, including cost and procurement services. The operation and maintenance service constitutes 22% of the total gross profit of the next generation MSP, and this is a high-profit annual fee source. In the third-party application sales, there are usually security monitoring, cloud cost management, data management, data analysis and data visualization. Usually the next generation of MSP packages these in their own services to obtain a higher premium. In terms of value-added IP and cloud native development, next-generation MSPs typically help customers develop specialized software or vertical industry applications, and value-added IP can deliver up to 80% of gross margin for MSP.

Forrester's recommendations for traditional MSP are: investing in development tools, scripting, reusable frameworks, and software assets; gaining differentiated competitiveness through deep and diverse technical capabilities, providing diverse services throughout the customer's lifecycle Expand value propositions through partnerships and joint marketing among partners; explore new pricing mix to drive revenue growth and long-term customer business; build long-term customer relationships, drive repetitive business and annual fee revenue streams.

So, what is the conclusion of the TSIA report? TSIA tracks the revenue components and changes of 50 technology and services companies (TS50, including Microsoft, Adobe, ABB, Accenture, Cisco, IBM, Oracle, SAP, Teradata, Equinix, etc.): TS50's products in 2008 Class revenues were $455 billion, accounting for 59% of total revenue, and additional services revenues were $318 billion, accounting for 41% of total revenue. At 2018, TS50's product revenues were $371 billion. It accounts for 45% of total revenue, and service revenue is US$456 billion, accounting for 55% of total revenue. That is to say, after ten years of evolution, the product business is shrinking, and the service business has evolved from the previous product value-added attribute to an independent business attribute. The customer is changing from purchasing products to technology companies to purchasing services from technology companies, 2018 Year is a watershed. In 2018, XaaS business accounted for 23% of TS50's total business, while managed service provider's Managed XaaS business increased from 6% of total revenue in 2014 to 35% in 2018.

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Comparison of financial indicators between TS 50, Cloud 40 and management service providers of TSIA statistics

In another tracking study by TSIA, TSIACloud 40 (40 cloud companies) achieved revenue growth of 23% in 2018, operating income of -0.5%, TS50 revenue growth of 6%, and operating income of 15%. The pure new revenue growth of management services was 12%, recurring revenue growth was 11%, and operating income was 13%.

The basic conclusion is that full-stack management services will be the main mode of the next-generation MSP, which is at the top of the entire cloud computing industry chain, helping enterprise customers manage (host) all IT environments (including traditional IDCs and networks). ), and provide value-added services such as cloud native development; more importantly, full-stack management services have a healthy financial model.

An Chang Network's next generation MSP practice

It is accidental and inevitable that Anchang Network will be the path to become the next generation of MSP. Founded in 2007, Anchang Network has more than ten years of experience in data center and cloud computing hosting. In 2017, it announced its transformation into a leading third-party neutral cloud management service provider in China, providing digital transformation for medium and large enterprises. One-stop cloud consulting, cloud integration, cloud management and cloud application development architecture services, and establish strategic partnerships with mainstream public clouds at home and abroad.

Compared with other MSP vendors, Anchang Network also has a huge advantage in the field of hybrid cloud infrastructure integration. It has more than ten years of experience in the operation of physical data centers, currently in mainland China, Hong Kong and Japan, South Korea, the United States. More than 10 high-level data centers have been operated in countries and regions such as Frankfurt. More importantly, Anchang Network has continued to invest in “CloudLink Cloud Network”, its own network, CloudLink is connected to more than 100 telecom operators worldwide, based on high-speed transmission backbone network and SDN and SDWAN technologies. More than 20 high-level data centers and dozens of Availability Zones across the globe, helping to optimize data interaction experience, stability and cost between cloud and network, cloud and data center, cloud and cloud It also helps Anchang build differentiated competitiveness at the level of hybrid cloud infrastructure integration.

Clearly, for the next generation of MSP, all of the customer's IT environment needs to be fully leveraged, which means a public cloud environment as well as a private cloud and a traditional data center environment. For emerging MSP vendors, it is easier to gain the knowledge, experience and skills of the public cloud, but if you want to take over the enterprise's comprehensive computing environment, you need the experience and assets of traditional data center hosting, especially the direct connection of fiber-optic networks. The ability to re-asset, and this is precisely the advantage of traditional data center hosting providers. Traditional data center hosting services and IT management service providers can complement the cloud-native computing staff and knowledge of light assets to build new management services and next-generation full-stack management services.

After 2018 Tencent strategic investment in Anchang Network, it further promoted Anchang Network to embark on the professional service road of application development, integration, operation and maintenance and management. In 2018, An Chang Network added more than 100 people, basically in the direction of cloud original development, micro-service architects, project management personnel. This is mainly to follow Tencent's transformation to ToB business, and Anchang Network has become a bridge between the technical capabilities of Tencent and the needs of corporate customers. For Anchang Network, it is not simply to resell Tencent cloud resources, but to undertake the reconstruction, development and migration of a large number of systems and applications generated by Tencent Cloud to the enterprise customer environment. On this basis, Anchang Network has developed new capabilities such as enterprise technology in the establishment of the platform, application of micro-service transformation, cloud product portal integration.

With the transformation of enterprise application cloud, enterprise IT environment and IT system began to migrate to the hybrid cloud environment on a large scale, which brings great challenges to the CMP cloud management platform. At present, there are many domestic manufacturers and startups. Based on open source ITSM and cloud management tools, they can build their own CMP cloud management software and portals, which can be completed in half a year or a year. But in fact, in the enterprise IT environment, CMP software encounters challenges in cloud-native and cloudy distributed architectures, and more from corporate IT management and auditing requirements.

Previously, enterprises built a complete internal IT audit process based on centralized IT management and traditional ITSM software and ITIL standards, while cloud and distributed computing empowered enterprises to agile computing and agile business capabilities while also allowing enterprise IT to decentralize For each business department, let the business department flexibly develop its own application. This process seriously affects the original IT and risk management such as budget, decision, management, audit, etc., and requires the corresponding cooperation of CMP software. For MSP, only a deep understanding of the business logic and organizational structure, management processes, risks and audit policies of the enterprise can redevelop or change the existing CMP platform software to meet the management needs of the enterprise in the cloud environment. . The CMP platform of Anchang Network was also transformed in 2019, which increased the ability of internal control, resource visualization and cost-effective management.

In addition to being more in line with the management needs of the enterprise in the process of moving to the cloud's native computing environment, Anchang's CMPT platform software and tools further enhance the user experience, and increase the automation judgment and pre-judgment in the response process of the work order. The speed of customer response. In the management of public cloud IaaS, Anchang Network has gained a deeper understanding and understanding of partners such as Tencent Cloud, and is more sensitive to public cloud platform failures and can respond in the first time. SmartOps, which is continuously developed by Anchang.com, also added cost management and cost control functions in 2019 to help enterprises better manage cloud procurement and expenses.

An Chang Network itself has also experienced the original transformation of the cloud. Previously, An Chang's internal support system had 16 people. By 2019, only three people had completed the work of the previous 16 people, mainly through micro-services of the overall internal IT system, including IT containerization, process automation, and capacity expansion. After a series of transformations, it has moved away from manual management to become more automated operation management. At present, most of the internal support teams of Anchang Network have turned to development work, including the newly added R&D personnel who have invested in value-added services such as medium-sized products.

Since 2018, the concept of “Greater Middle School” has become a hot spot for enterprises. Zhang Chang, CTO of Anchang Network, introduced: Anchang Network is also based on Tencent's micro-service development framework and core product capability framework of micro-service governance. A set of technical middle-office solutions to help enterprises quickly build a micro-service-driven full-stack technology platform; application micro-service transformation, mainly to help enterprises reconfigure single applications into micro-service architecture solutions; and cloud products Portal integration service, which is mainly aimed at enterprise-purchased cloud vendor PaaS middleware and various commercial middleware, to help tailor the corresponding Portal management platform. At present, more than 100 R&D engineers at Anchang Network are proficient in Spring Cloud eco-technology, rich Kubernetes and Mesos production application practices, and cloud native technology capabilities based on CI/CD maturity practices based on Gitlab and Jenkins Pipeline.

In turn, looking at the financial performance of Anchang Network in 2018, it has a substantial increase in overall revenue (45.6%) and a seemingly general gross profit margin (15.99%), as well as a net profit to expand the loss scale, as well as a substantial expansion. The team of R&D engineers and the support of Tencent's strategic investment, while the company's business is striding from the traditional data center hosting to the MSP cloud management service to the next generation MSP model. Such annual financial performance, other cloud service providers have also experienced a similar situation: in the big transformation of the business, sacrificing profits and quickly doing large-scale, that is, first to grow bigger and then stronger to seize the market strategy; at the same time speed up “ processing history Debt & quoquo;, paving the way for the subsequent financial performance of new business. The financial data for the first quarter of 2019 disclosed in the same period also reflects this point. The company is rapidly narrowing its losses. It is expected to achieve a one-month Breakeven in the second and third quarters, paving the way for the subsequent IPO.

In 2019, China will enter the key year of enterprise cloud. “Intelligence+" will promote the digital transformation of enterprises from the simple cloud and cloud migration to the key business and key systems on the cloud and cloud-oriented environment. Transforming the original application and refactoring the application is the digitalization of the industry. According to China's Xintong Institute, the digitalization of China's industry in 2018 exceeded 24.9 trillion yuan, a nominal increase of 23.1% year-on-year and 27.6% of GDP. In this wave of industry digitalization, there will be an opportunity for China's next-generation MSP Unicorn Company, which will be the era dividend of China's digital economy.

In the tide of industrial digitalization, is An Chang Network likely to become the next unicorn company? At least the next-generation MSP business model gives An Chang Network an opportunity.

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