Cloud computing team, targeting the digital transformation of smes

“The idea of edge cloud has a natural fit with the digital transformation of industrial enterprises.” Ye Sihai told the small table.

Prior to the establishment of Yuanlian Technology, the founding team of Yuanlian had served in Huawei cloud core positions for many years.

More than ten years of work experience in Huawei Cloud has made the team realize that the digital transformation of small and medium-sized enterprises is a huge incremental market, but the demand has not been met, and the development of edge cloud technology has brought new ideas to the market.

First of all, in terms of market size, according to the data of the Ministry of Industry and Information Technology, in 2022, China’s total industrial added value exceeded 40 trillion yuan, accounting for 33.2% of GDP, and the scale of manufacturing ranked first in the world for 13 consecutive years.

At the same time, in accordance with the “14th Five-Year Plan” intelligent manufacturing development Plan, 70% of manufacturing enterprises above the scale of 2025 should basically achieve digital networking, which means that a large number of manufacturing enterprises need intelligent transformation and services, and the market size is more than 100 billion.

However, despite the vast market prospects, digital transformation is a real problem for small and medium-sized manufacturing enterprises.

Ye Sihai told the small dinner table that digital transformation is a complex system engineering, and the installation cost of digital systems will be millions of yuan. Large manufacturing companies are well-funded and have professional digital teams, so the transformation is relatively easy.

But for smes, there is neither the capital to support the transformation nor the digital team, so “very few smes have completed the digital transformation.”

Relevant data show that at present, the average investment in digitalization of manufacturing enterprises is only one-thousandth of their annual income, which means that a factory with a revenue scale of 100 million yuan is only willing to spend 100,000 yuan per year on digitalization.

“The most likely way to reduce the cost of digital transformation of a million enterprises to less than $100,000 is to use edge cloud technology.” Ye Sihai told the small table.

The key to the industrial Internet is “network + intelligence”, which is consistent with the underlying logic of cloud technology “Internet of everything”. However, it is not easy to make cloud technology truly meet the digital transformation needs of small and medium-sized enterprises.

First of all, the public cloud of Huawei, Tencent, Ali and other large manufacturers, due to the huge scale of computing, can only provide services in the way of public cloud, it is difficult to meet the needs of small and medium-sized enterprises on-site production control security, high bandwidth, low latency.

Ye Sihai gave a very realistic example, after the assembly line of a manufacturing enterprise is started, if the interruption of cloud computing services leads to the interruption of the assembly line, it will affect the entire production process of the enterprise, and even cause production accidents.

This means that only locally deployed private clouds can meet the control and business customization needs of manufacturing enterprises for production equipment.

But on the other hand, the high cost of private cloud construction makes most small and medium-sized enterprises prohibitive.

By further breaking down costs, the team found that 75% of a private cloud’s cost is spent on data center bandwidth and human maintenance, and only 25% is spent on computing and storage.

Therefore, if the edge computing method is used to create an open platform that integrates the core capabilities of network, computing, storage and application, and provides services close to the data source, it can save the cost of computer room, dedicated line and local maintenance, and reduce the price to the greatest extent.