Chapter 268: Software Store
Holding Miller's outstretched palm with appropriate strength, Yu Jun looked at the CEO of Oracle, who was about the same height as him, and said in an equal tone: "Mr. Miller, we will start a new century." β
Miller smiled, "I have great hopes for my husband. β
Yu Jundeng noticed that Miller's understanding of himself was not limited to Kingdee's major shareholder.
"You may be seated." Millepin said with his palm outstretched.
Yu Jun sat down according to the hem of his suit, and listened to Miller say: "I have read the plan sent by Mr. Xu, and I want to talk to Mr. Yu about it." β
"Please." Yu Jun said.
"I would like to ask Mr. Yu to talk about the idea of a software store." Miller still had a smile on his face as he spoke, but his slightly constricted pupils indicated that he cared deeply about the answer to the question.
Xu Tingchun carefully studied the plan written by Guo Jun himself, and the model of the software store mentioned in the book was surprising, but there were some puzzling points, and when he heard Miller ask this question, he paid attention to Yu Jun's answer.
"Oracle should consider taking an unusual path," Yu Jun thanked Susan for the coffee, swapped out the tea, and said to Miller, "In the past, Oracle only stored as a platform for digital library products, like Microsoft's Windows operating system, and all the application software on it was provided by other partners, software companies like Kingdee, but more software was applied to the digital library platform without cooperation with Oracle." β
"The consequence of this is that when a company buys Oracle's digital library products, it has to buy software from other companies, and the new digital library systems provided by Microsoft and IBM are embedded with related application software."
There was even SAP, but Miller didn't interrupt Yu Jun's words and listened to him continue.
"Of course, this can meet the needs of the basic company application, but some companies with customization needs need to consult Oracle when they want to get adequate service and the right application software when they don't want to pay too much cost. However, after the adoption of the opinions, it is not the right one to be selected. β
It's a problem that any service business encounters, and Miller thinks so, but he'd like to hear more.
"Oracle announced in 1995 that the PC was dead, formed a network computer company, launched a network computer, and finally died without a problem."
Yu Jun mentioned Miller's sore spot in a very provocative way, which made his brow furrow: "Please Mr. Yu focus on the software store." β
Yu Jun grinned nonchalantly: "This model is not surprising, it just continues to use the original platform model, so that all kinds of application software vendors can be placed on the platform and adopt the method of using and paying." β
Miller's eyes lit up, he sat up straight, and motioned for Yu Jun to speak in detail.
"Oracle's ability to focus on the Internet in '95 shows that Mr. Miller and Mr. Ellison have great confidence in the development of the Internet, and the successful IPO of Yahoo is also showing that. The networking of software companies is an irreversible development trend, and more importantly, how to use the development of the Internet to transform. β
"Oracle's database system is a platform on which any management application software can be run, and related application software can be developed using Oracle's development tools. My idea is, can this kind of application software be sold on the Internet in the form of a software store? β
"For example, Amazon is now the world's largest online bookstore, so why can't the software be sold on the Internet? The choice is left to the customer, and Oracle makes a profit by taking a commission on the sale of each software. β
"As far as I know, Oracle's current sales model relies on salespeople to go to customers to persuade them in person, so why can't it be transformed into a way of using the Internet to sell? This will at least save a lot of marketing costs. β
Yu Jun has done his homework for a few days, but it does not mean that he can fully understand this independent software company that will be second only to Microsoft and surpass SAP in the future.
Concerned about the high cost of selling, Ellison has instructed Miller to begin a plan to shrink the number of software stores and sales professionals, put all sales on the Internet, open corresponding departments, and reduce expenses, which is expected to reduce Oracle's expenses by nearly $500 million in 2000.
In 1999, Oracle's sales revenue was only $8 billion, and you can imagine the impact of the Internet on Oracle.
Yu Jun was a little surprised that he could think of this, but he was more interested in the software store model.
Selling software like Amazon sells books, even if it doesn't mention feasibility, the creativity alone makes Miller excited, and he believes that Ellison will be just as excited if he hears the news, but what he doesn't know is that Ellison already knows the news.
In the CEO's office on the top floor, Ellison, with a blue chin and a stubble on his chin, listens to the conversation on the camera in the GuΓ² conference room, and the presidents of various departments who have been urgently summoned are surrounded by LCD screens.
"What do you think is the feasibility of the software store he said?"
The vice president in charge of sales said: "I'm afraid the feasibility is not strong enough, the software is not a commodity, and its follow-up services must be kept up to ......."
"No, you didn't understand what the Chinese meant. He said that what he wants to open on the Internet is a store, a store, have you ever seen that the store is responsible for the after-sales service in the store? Ellison laughed.
The vice president was slightly stunned before nodding and saying, "But software is not the same as the goods sold in convenience stores and supermarkets." β
Ellison said: "If you think about it, it's not much worse, but the difference is that we can do a lot more in this area." β
If we rely on Oracle's digital library platform to build a software store, we will propose corresponding standards on the basis of the development tools already sold by Oracle, and greatly reduce sales costs, administrative costs, time costs, and a series of fixed expenses.
It's more likely to boost Oracle's potential customers, especially small and medium-sized enterprise customers, and allow departments to focus on larger customers and provide them with better service.
Compared with Ellison's sales cuts, Yu Jun's is more innovative.
But what he didn't expect was that Yu Jun wanted more than that.
Yu Jun quietly glanced at the shining round camera in the corner of the ceiling of the conference room, and said to Miller: "Now that the Chinese speed of the digital jΓΉ library software launched by Oracle is completely unable to ensure that the English version and the Chinese version are consistent, do I want to leave this aspect of the work to Kingdee?" β
Miller was stunned, and he was once again puzzled by Yu Jun's whimsical way of speaking.
"Kingsoft and Kingdee together have an R&D team of more than 2,000 people, which is far more than Oracle's wholly-owned company in China, and I mean can these two software companies take on such responsibility?"
"I'm afraid it's going to be hard." Miller shook his head and said.
The system and software of the Sinicization headquarters are the most important responsibility of Oracle China, and if this responsibility is outsourced to Kingsoft and Kingdee, the significance of the Chinese company's existence will be greatly reduced.
"What about the establishment of a software store with Oracle by Xiling Holdings?"
It seems that Yu Jun is making a request, and he is slightly at a disadvantage in the negotiations, but he is guiding Miller step by step.
"This needs to be talked about again, but I know for sure......" Miller said, and Susan handed the PDA in front of him, with a message from Ellison on it, "I can grant you your request to set up a joint venture software store." β
Yu Jun smiled: "I am very satisfied with Mr. Miller's reply, can we wait until lunch to talk about specific matters?" β
Miller looked at the time, and before he knew it, it was already twelve and ten o'clock, so he got up with a smile and said, "Let's go, go to the staff cafeteria." β
At a level like Miller, you don't ask for an invitation to eat and drink in a high-end restaurant outside at lunch, and going to the staff restaurant can also make visitors feel more about Oracle's corporate culture.
"I'm not used to eating Western food," Luo Yuan said, standing next to Yu Jun, "steaks, sandwiches, mashed potatoes, what else can they make besides these three?" β
Luo Yuan was referring to the general working meals of Western companies, and Yu Jun couldn't help but smile and said, "It's good to have food." β
Under the leadership of Miller and Susan, he found a random place to sit down, and the employees around him did not feel any strange when they saw Miller, let alone deliberately avoid it like in many companies, and even engineers greeted him with a smile.
"In the early stage, the software store mainly relied on Oracle's original accumulation in the number of databases, and in the later stage, it could consider expanding to other aspects, and the general application software could also be sold in the form of software stores, and the joint venture company would charge a part of the fee, such as 20% or 30%, if all the software could get rid of the sales method of relying on specialty stores or large supermarket chains such as Wal-Mart, the extra profits would indeed make them willing to hand them over to the software stores."
Yu Jun gushed endlessly, and Miller was still nibbling on mashed potatoes, but they all stopped and listened intently.
"This will eventually change the sales model of the entire software industry, all we need to provide is a series of e-commerce platforms, including sales systems, billing methods, customer service centers, and later customer service will be handled by the sellers on the software store."
Yu Jun's huge plan made Miller extremely excited, and he couldn't help asking, "How much does such a total investment cost?" β
"Xiling Holdings plans to spend $50 million and occupy a 30% stake in the joint venture." Yu Jun said.
In this case, Oracle would have to come up with more than $120 million to get the following shares, and Miller was hesitating when he heard a voice say, "Oracle is willing to give this money." β