This is also the consensus of most Wall Street investment institutions, Tencent and Alibaba's success in Silicon Valley, Wall Street investment institutions do not think that it is because of how outstanding Erma's ability is, or that Tencent and Alibaba, two Internet companies from China, are different.

Investment institutions believe that the reason why they can stand out in the fiercely competitive Silicon Valley is entirely because of Zhou Xin. In fact, Tencent's strategic direction, Zhou Xin will be more involved, and Zhou Xin has almost no interference with Alibaba.

To enter Silicon Valley and help Ameriken's traditional consumer enterprises carry out digital transformation, this strategic direction was also set by Jack Ma, Zhou Xin didn't expect this at all, because Zhou Xin is not interested in the e-commerce business, and it is a pure investment behavior for Alibaba.

Therefore, Huaguo's Internet companies can survive in Silicon Valley or even live well, their own capabilities are equally important, and Americon companies update a version every few months, only considering the input-output ratio for user needs, first judging whether it is necessary, and then judging whether the final income is comparable to the output, and whether the development benefit is high enough.

The Internet companies in China are almost responsive to the needs of users, and the needs you put forward today, whether they are reasonable or not, will help you transform them into functions that can be realized, and even understand more deeply than the needs you want.

The degree of Internet volume in China is far greater than that of Ameriken, because the success of Tencent and Alibaba in Silicon Valley has led to the Internet industry in China that has begun to appear in the style of the king of the future.

Zhou Xin only smiled slightly after listening to it, he was still very proud of the timeline that he had completely changed this world.

Although Huaguo's Internet began to roll up many years in advance, Huaguo's Internet has also enjoyed the dividends brought by international capital many years in advance.

In this era when the general salary level in other industries is 3,000 yuan, programmers can get tens of thousands of salaries.

What's more, Zhou Xin has largely allowed China's Internet companies to go overseas almost 20 years in advance.

In the original time and space, why Huaguo Internet did not have capital overseas until about 2016 is because the cost of running a business in China is different from that of Ameriken, and the investment institutions invest you according to the valuation of Huaguo enterprises.

For example, Alibaba raised $5 million from Goldman Sachs at the beginning, and $5 million can support their normal operation in China for a long time, and in exchange for Ameriken, this money may only be enough for half a year.

If you don't see results after half a year of operation, and if you don't have the capital to continue to invest money in you, your internationalization attempt will only end in failure, and you won't be able to exchange for any valuable experience.

The difference now is that Zhou Xin used Tencent in advance to beat the reputation of Huaguo's Internet companies, whether it is Ameriken Capital or Silicon Valley Internet companies, they all know that Huaguo's Internet companies are full of potential, and Huaguo's Internet practitioners work hard.

In the three years since the turn of the millennium, Zhongguancun and Silicon Valley have cooperated in a variety of ways, including Alibaba and Tencent, which are directly funded by the parent company to set up branches in Americon. There are also companies like Sohu and Yahoo, which have set up joint ventures in Americacan.

There are also Sina and Joy.com, Sina's Internet business was wholly acquired by AOL and became AOL's branch in China, while Joy.com was acquired by Amazon.

The degree of integration between the two sides is deepening, and the entire Internet industry is permeated with a smell of good money. Even in the Internet desert in the first-tier cities, the salary of programmers is unique, and only the employees in the chip industry can match.

Zhou Xin said: "Okay, I agree with your point of view, you can do it, you should also have a deep understanding of the public cloud business in the past three years."

This business requires a lot of capital to expand, and it is a better cash flow business than IDC hosting, which will definitely be of interest to Wall Street.

Now that this model has worked, and from the background it is getting faster and faster to see that we are now expanding to catch our competitors off guard. ”

In fact, the only vendors that can compete with the new cloud on the public cloud are Microsoft and Baidu, because they have the ability and willingness to do this kind of business.

The biggest advantage of public cloud business and earlier server leasing and hosting is the dynamic allocation of resources and the self-sustaining of servers.

The cost is mainly composed of several parts, such as site, server, network resources, electricity, supporting equipment such as precision air conditioning and USP power supply, and labor costs, of which the majority of the cost must be servers.

At the time of the initial expansion, a lot of money is needed, and the construction of machine rooms in major cities is completed, and after the completion of construction, the majority of the cost on the book is the depreciation of the equipment, and after the depreciation of the equipment is completed, the net profit on the book is the net profit, as long as there are few competitors, this is a very good business model.

If there are many competitors, price reduction and dumping will occur, and it doesn't matter if Zhou Xin is looking at price reduction and dumping, he is interested in the technical heritage brought by Xinyun, as well as the chip business contained in a large number of servers.

Servers have very low requirements for chip manufacturing processes. Until 2023, the most advanced chip process has come to 3nm, and the latest Xeon processor launched by Intel's data center business still uses the 10nm process.

Therefore, Zhou Xin wants to rely on Wall Street capital to raise Xinyun, which is indeed a good business for them, and then rely on Xinyun to raise the chip foundry business.

In this way, Xinxin Technology's chip foundry business is supported by Mphone, Bluetooth chips, Xiaomi, and Xinyun, and even if it develops to the scale of TSMC, there is no need to worry about no business.

Xinyun can be regarded as making up for the last shortcoming of Xinxin Technology's chip foundry business, and there is still a big difference between enterprise-level chips and ordinary home computer chips.

"Pony, how has Tencent's mobile business progressed lately?" Zhou Xin usually meets with Pony once a month to chat about Tencent's recent business trends and development direction.

Pony is married, but his wife is still in Pengcheng, he runs on both sides all year round, and goes back to Pengcheng for a week a month to deal with the business there.

In the founding team of Tencent when it was founded, Zhang Zhidong stayed in Pengcheng all the year round to be responsible for the operation of Tencent's business in Pengcheng.

"The mobile business is growing fast, and WeChat's advertising revenue should exceed $50 million this year, which is an impressive growth rate, because Mphone2 can start using 3G networks," Pony said.

WeChat, which removes restrictions on image loading and video loading, can have more bargaining power in the negotiation process with advertising providers. ”

WeChat and Weibo are the business of Tencent's Americon branch, Tencent's equity structure in the Ameriticon branch was established when a new adjustment, Zhou Xin controlled 65% of the shares of Americacan North America, and the remaining 35% was given to the option pool as an employee.

Pony alone accounts for nearly 12 percent of the shares, you must know that relying on Weibo and WeChat business alone, Tencent's valuation in North America is more than $5 billion, and when it is actually listed, investment institutions believe that it can exceed $10 billion.

Pony continued: "After the restrictions were lifted, there was an explosive increase in user activity on WeChat's Moments function, and the combination of pictures and texts allowed users to have a stronger desire to express themselves.

Because of the positive feedback from the data, we decided to increase the ad pricing by 30%.

In the future, it will be adjusted with the improvement of user activity. ”

After hearing 30 percent, Zhou Xin said, "Did you choose this number because of me?" ”

Pony smiled awkwardly: "Yes and no, the main thing is that we can't quite grasp the magnitude of this price increase, so we chose the moderate number of 30%, according to my idea I even want to double it directly." ”

Now Tencent has no interest in the game business at all, and their business in China mainly relies on selling QQ shows and advertising in the QQ space.

At the same time, Huaguo is also promoting WeChat and Weibo, but progress has been slow, and the commercial potential has not yet been realized.

Tencent's business in Americon is mainly advertising and corporate QQ sales, and it has never thought about transforming into a game business.

It's not that I can't look down on the game business, but because I don't have time, the current business model is rich enough, and I don't have the motivation to enter a new field, and it's not like Tencent, which can't find a profit growth point in the original time and space, and has to eat dirt.

Tencent relied on the advertising business in the Americon region alone to generate revenue of more than 50 million US dollars, and last year's most popular game in China was Legend, and Shanda's annual revenue was only 400 million RMB.

Tencent doesn't want to make games, Taobao doesn't want to be a human e-shopping website, with Huaguo's accession to the WTO, doing foreign trade is too profitable, as fast as picking up money with a sack, Alibaba's entire team is focused on how to do a good job.

The bridge here refers to the cooperation between Chinese manufacturers and foreign companies, and to put it bluntly, it is to sell Chinese products to the world.

Zhou Xin said: "In fact, it's okay to take a bigger step, the smartphone business is developing rapidly, maybe you will now think that 30% is more appropriate, and after signing a contract with the advertising party, you will regret seeing the data, why didn't you set the figure at 50%, or even 100% at that time."

But it doesn't matter, we're in a long-term business, and even if we let them take advantage of it now, it won't be good. ”

Zhou Xin doesn't care much about this benefit, and he doesn't feel it at all when he hears the revenue of 50 million US dollars, what he cares about is the market size.

"Motorola and Nokia are still reluctant to let WeChat enter?" Zhou Xin continued to ask.

Pony said helplessly: "We have communicated with them many times, and they have always been ambiguous.

When we wanted to go any further, they would talk about him as if it were the first time they had heard of him. ”

(End of chapter)