Chapter 2 Du Qiu's Balloon
At this time, the boss brought a few plates of cold dishes. Du Qiu played basketball for the whole afternoon and consumed a lot of energy. He was already hungry. He picked up the chopsticks and said while eating: "Secretary Zhong, I don't understand the government's work. I will talk about my plan for Snapdragon. You can make a reference."
"You talk."
"Snapdragon's current valuation is around $20 million. I plan to make its valuation exceed $1 billion in three years."
What a crazy talk!
Zhong Gaoshan subconsciously felt that Du Qiu was in a dream, but Microsoft specially sent senior executives to Yuncheng and the valuation of $20 million made him feel anxious. He picked up chopsticks and picked up a piece of beef from his husband's lungs and said, "Little Du, you are so aggressive and ambitious. 1 billion US dollars is not easy. What are you going to do?"
"Snapdragon's main product is ivie browser, and its main competitor is Netscape. Netscape is headquartered in the famous Mountain View City in Silicon Valley. It has nearly 300 employees and an average salary of about 80,000 US dollars per year." Du Qiu briefly introduced the overview of Netscape and concluded: "Just like Zhou Yuan said just now, the Internet and beer are a fast-growing industry. Whoever seizes the market first wins. The reason why I dare to fight with Netscape to grab the market in a free form is because although we have less money, the cost is lower, and we burn money slowly. In the end, they will definitely die first."
He turned sideways and asked the boss to put a plate of grilled lamb skewers on the dining table, and then continued: "Netjing pays millions of dollars every month, and we only have more than ten thousand dollars. Secretary Zhong, have you noticed that there is a huge business opportunity hidden in this?"
Zhong Gaoshan felt that his brain was a little too hard to turn, so he picked up the plastic cup and took a sip of beer.
"When the reform and opening up in 1979, the wages of workers in Pengcheng were only one-tenth of that in Hong Kong, so the OEM business of three to one supplement was very prosperous." Du Qiu did not embarrass Zhong Gaoshan and revealed his answer on his own: "The salary of Chinese programmers is 20 to 30 times different from that of the United States, but the ability is at most two to three times. The physical industries such as software and clothing, machinery manufacturing are different. There are no sea transportation, only one cable can be transmitted. Yuncheng has 3 key universities, and the scientific research environment is relatively good. I plan to establish a software park after Yuncheng opens the Internet and recruit a large number of programmers to help developed countries such as the United States, Japan and Europe."
Zhong Gaoshan was very excited when he heard this. He not only understood this model, but also was very familiar with it. Therefore, in the economic development zones he established during his time as mayor, many companies were engaged in overseas OEMs. So he drank all the wine in his wine glass in one breath and nodded slightly, "This is a good idea."
"In China, Snapdragon's high salary is very attractive to college students, so recruiting employees is not a big problem. In foreign countries, there is an open source ivie browser as a signboard, and customers can intuitively understand Snapdragon's technical strength, so OEM orders are not a big problem." Du Qiu picked up a mutton skewer and said with confidence: "The output value of the global software industry is about 200 billion US dollars, and it grows at a rate of more than 15% every year. As long as you can eat one-tenth of the market share, you will have tens of millions of dollars in revenue every year, plus the products developed by the company themselves, so if it goes public in three years, it is still possible to achieve a valuation of 1 billion US dollars."
Zhong Gaoshan felt that this was indeed a good business opportunity, but the annual revenue of tens of millions of dollars was a bit too optimistic, saying: "Software is a high-tech industry, and it cannot be standardized production like beer. OEM is not that easy."
"There is a very famous high-tech enterprise in the United States called Sun. On Tuesday, May, they released a new programming language called java. This language is specially prepared for large-scale software development. It is easy to learn and use, stable and robust, and has high security. With it, the development of software is like building a building, and according to the design blueprint, it is enough to write the code step by step."
Java was not mature when it was first released in 1995, but with the support of giants such as sun and ibm, it will soon become an industrialized programming language, turning programmers into coders, greatly reducing the threshold for software development. Zhong Gaoshan was stunned and a little unbelievable when he heard what he said.
Zhou Yuan picked up the wine glass to liven up the atmosphere, and said while urging him to drink: "No wonder Mr. Du has no intention of selling the company, but insisted that Microsoft send someone to China for an interview. This is a free live advertisement. After the media reported it, Snapdragon's reputation at home and abroad suddenly increased. With fame, business will definitely come."
When Zhong Gaoshan thought about it, he had a much higher evaluation of Du Qiu. When he visited last time, he thought he was a pure technical talent, but now he found that he had unique vision and was always on the verge of step. His business ability was no worse than that in technology. He also had a firm personality and was not tempted by external temptations and interference. He had a big picture and was far-sighted. If he could go steadily and move forward correctly, his future was unlimited.
"Xiao Du, what are you going to do with this software park?"
"In fact, software OEM is not something that only exists now. Without the Internet, it's just a little less efficient." Du Qiu opened another bottle of beer and handed it to Zhong Gaoshan, saying: "There is a city in India called Bangalore. It started to help developed Western countries with OEM software as early as the 1980s. In 1994, the export volume was about 1 billion US dollars, and it has formed an effective industrial model. Zhou Yuan, you have communicated with many Indians in the United States, so let me introduce it to Secretary Zhong."
"Secretary Zhong, this is how Bangalore operates..."
Software OEM is a long-term plan for Du Qiu. This industry sounds very low-end, but it is very suitable for the national conditions in the mid-1990s. Because China's software industry was still developing at this time, with a total output value of only 4.9 billion yuan in 1994. Not to mention the whole world, it cannot be ranked in Asia. For example, South Korea, whose population is only one-25th of China, had a software output value of more than 5 billion US dollars in 1994.
The Internet industry will not enter the explosive period until at least 1998. During this window period, Du Qiu planned to use Snapdragon as a model to organize a software park that integrates training, production and sales to accumulate talents for the future. It should be noted that in 1995, all programmers in the country had less than 100,000, and most of them worked in small workshops with a few or a dozen people. Just like breweries in various places, they were scattered and brave, fighting each other, that is, they were not standardized and had no scale, and it was difficult to adapt to future development needs.
If Snapdragon wants to become bigger and stronger, it requires at least thousands or even tens of thousands of high-quality programmers. Du Qiu cannot conduct training every day like now. Therefore, the best way is to attract talents from all over the country to Yuncheng, survive the fittest, evolve independently, and form a pyramid-like talent training system and business ecological environment. Undergraduate talents are outsourcing, high-end talents are engaged in research and development, and move forward like a snowball.
In simple terms, Du Qiu is not only satisfied with being the boss of a software company, he wants to turn Yuncheng into China's Silicon Valley!
Software Park is just the first step, and there is still a long way to go in the future!
"Xiao Du, you are so hiding. Why didn't you tell me earlier about such a good plan?"
"Secretary Zhong, I have tried my best to rely on myself since I was a child and can solve the problem by myself. There is no need to bother others. I think this software park Snapdragon can be done by myself, so I didn't tell anyone outside the company."
"I'm just a mess, what's the trouble of building a software park? This is a great thing that benefits the entire Yuncheng and even the whole province. Write me a report, the more detailed the better."
"The construction and development of the software park are all under the responsibility of Mr. Chen. When he comes back tomorrow, I will let him report to you in person."
Chen Dayou is eloquent and versatile, and is much easier to deal with than Du Qiu who speaks like an ice skate. Zhong Gaoshan nodded repeatedly and said when he left the restaurant: "Little Du, you young people are aggressive, brave and walk fast, but our municipal party committee and government are not old ladies who bind their feet. I can now guarantee that this software park project Yuncheng can provide a lot of preferential policies, including the provincial and national ones. The municipal party committee and government will do their best to help you win!"
As Chen Zhiyang said, there is no bureaucrat who doesn’t like blowing balloons…
Snapdragon is too small now, but its momentum is too strong. It must be diverted, otherwise it will be difficult to ensure that it will not be stolen by bureaucrats. Software park projects cannot be created overnight. There is a year or two to buffer. By the time the park is built, Snapdragon has become a climate and no one can blow it up...
(To be continued.)
Chapter completed!