On April 28, 2021, the VNET New Brand Strategy Conferencewas successfully held in Beijing. At the conference, VNET Group officially released its new subsidiary brand "NEOLINK". By integrating the new retail and DYXnet business groups within the company, and establishing the new infrastructure IDC technology company - NEOLINK, VNET Group not only embraced the development opportunity of "building Digital China" in the 14th Five-Year Plan period, but also made an important deployment of resources and technologies in the IDC field.
The COVID-19 pandemic not only forced the whole world to push the pause button or even reset button, but also accelerated the digital transformation of enterprises. In the post-pandemic era, digital transformation is not a competitive advantage of enterprises any more, but a basic survival need. We did some research on the digital transformation process of active customers of VNET Group, and extracted four different development directions. I’d like to take this opportunity to share with you:
First, reduce the fixed costs.
Second, use the cloud native architecture to develop applications quickly.
Third, optimize the decision-making process through data-driven capabilities.
Fourth, join the digital ecosystem to build a new economic community.
As we all know, unlike the consumer Internet, the most distinguished feature of industry Internet or industrial Internet is that there will be more ecological partners, but no monopolists. Meanwhile, our six thousand customersalso have one thing in common in the process of accelerating their digital transformation, that is, an information architecture of new infrastructure to avoid repeated investment. With the vigorous development of new infrastructure in China, IDC has become an indispensable digital chassis in the economic society, and essentially, it has gradually changed from communication infrastructure to computing infrastructure. Looking at these two sectors, we are actually facing trillions of racetracks. It is the perfect time for us under the dual growth engine strategy of mass customization and new retail.
Due to the accelerated development of digital transformation in the post-pandemic era, and rich business opportunities in technology and engineering sectors under the new infrastructure wave, today we are very happy to share our new subsidiary brand with you.
By restructuring and integrating the new retail and DYXnet business groups of VNET Group, we established a new infrastructure IDC technology company -NEOLINK. The logo of NEOLINK basically adopts two points and a circle as the main elements. The points represent breakthroughs, the circle represents connections, “the point outside the circle” means breaking the framework with irresistible youth power. The circle implies that the continuous iteration of technological forces will connect the world. In the community of shared future for mankind, points and circle will co-exist permanently.
NEOLINK is established for the client-side new infrastructure. Our vision is to make digital migration much easier. The mission of NEOLINK: We are committed to becoming a partner of customers. We want to build a community of shared future with customers, rather than compete with our customers. NEOLINK originates from VNETGroup, and serves as the technology sector of IDC industry. Through refined operation, NEOLINK and VNET Group will closely cooperate with each other, and take a leading position in hyper-scale data center solutions and open hybrid cloud services respectively. The two companies will complement their core competencies. VNET Group will continue to deepen the construction and layout of integrated data centers, and its core competencies will be reflected in P2C2. NEOLINK will strive to make customers feel at ease in the multi-cloud environment and hybrid cloud environment, and its core competencies will be reflected in C2H2, namely the high-quality resources in top-tier cities, interconnected network connections, client-side managed services, server and computing power, and more importantly, the full-stack attentive services of hybrid cloud.
As I shared with you before, the winning tetralogy of industry Internet and Industrial Internet, namely understanding customers, providing value, improving ecology and creating win-win situation, will be more important in the era of digital economy. Similarly, in the era of digital economy, the value of use is often greater than the value of ownership. Therefore, every one of us and every enterprise need to embrace ecology with a more open mind, and grow together. NEOLINK will fully leverage our advantages in brand, resources, sales strength and products, to create an ecosystem of client-side new infrastructure.
As everyone knows, nowadays cloud native applications have been the mainstream trend. In the process of digital transformation, corporate clients are increasing their investment in cloud native applications. What is cloud native? Cloud native mainly includes containers, DevOps, etc. Containers are the lightweight software resources. Continuous delivery and DevOps are the release architecture of software development. Microservice is a dual-compliant software architecture. There is also a service governance technology, which can decouple our application service governance and business applications, and apply service governance ability on the infrastructure, so that our business applications will have higher flexibility. The value of cloud native is mainly reflected in helping customers improve the efficiency of software delivery and enhance enterprise innovation. Secondly, high availability and high elasticity. We know that, in some scenarios, we need the capability of high TCP concurrent connections and high elasticity, which are the most prominent features of cloud native. Thirdly, helping enterprises reduce IT costs and improve efficiency. Generally speaking, cloud native is actually a set of distributed Internet software architecture, which emphasizes agile development, fast launching and fast iteration. At present, cloud native is also becoming the technical base for the digital transformation of enterprises.
Tenxcloud is a professional provider of cloud native applications and data platform services. Adhering to the mission of creating value through computing and making data become assets, we are committed to helping enterprises realize digital transformation. So far, the company has served more than 500 large corporate clients and participated in the formulation of standards in server cloud, service grid and other industries. Since 2015, the company has mainly experienced three important stages. Stage 1, we adopted kubernetes as our container cloud platform in 2015, and made contributions to a community. Stage 2, we began to focus on key customers in the vertical market, and vigorously invested in the next generation of service governance technology. Then we launched products, and also ensured the stable operation of the core system. Stage 3, full-stack cloud native products strategy. Now the company has two product lines: cloud native application platform and cloud native data platform. And the company has completed five rounds of financing.
In fact, a round of comprehensive new infrastructure is also taking place in the global cloud computing field. It is the cloud native technology represented by containers and kubernetes, and the cloud computing form that is reconstructed by cloud native technology. Especially for the private cloud and hybrid Cloud architectures designed for large companies and traditional enterprises, it is called cloud native new infrastructure. Cloud nativity has shifted the focus of enterprises' IT architecture from computing resources to modern applications. The enterprise IT architecture is also undergoing reconstruction.
Taking this opportunity, we have cooperated with NEOLINK and jointly launched a solution. You can see that, relying on the huge data center resources of NEOLINK, we can build a cloud native solution that takes IT application innovation system as the core, and provide stable, safe, reliable and innovative products and services for our customers in governments, finance, energy and other industries. Up to now, Tenxcloud has successfully helped more than 500 corporate clients complete digital transformation. The largest single cluster we supported has more than 1,500 nodes. A customer in the financial industry completed the transactions of hundreds of billions of assets on the first day of starting business, and we helped the customer reduce costs and improve efficiency. Meanwhile, Tenxcloud also has nearly 100 channel partners, and we empower their standardized products.
As a core strategic partner of NEOLINK, we believe that, NEOLINK's leading client-side financial infrastructure capability and Tenxcloud's full-stack cloud native products will provide great support for clients' digital transformation in the whole lifecycle.
NEOLINK has inherited VNET Group rich experience accumulated in the past 25 years. Now we have five mature product lines, including data center service, network, hybrid cloud, bare metal and O&M service. All of these support our current business growth, and support our business growth in the short term. Of course, that's not enough. So we increased investment in R&D in 2021. We will make more investments in cloud native, SD-WAN, 5G, blockchain and other aspects, so as to provide more technology services and help customers realize digitization.
At the 25th anniversary celebration last week, our Chairman also officially announced the new generation of data center based on cloud native, which we have prepared for a long time. It will lay a solid foundation for the development of NEOLINK and VNET Group in the next decade or even the next two decades. Over the past 25 years, VNET Group has gained customers in different industries. Of course, our largest customer groups still come from the Internet. The Internet is the pioneer and practitioner of digitalization. We made an incomplete statistics on the platform of VNET Group. In the Internet field, there are more than 50 listed companies, super unicorn companies and unicorn companies. I think they are unique in the industry. In the future, we want to leverage our experience in serving Internet customers to help traditional enterprises. We will strengthen the expansion of traditional enterprises and help these customers realize digital transformation.
VNET Group had a particularly clear positioning when it was just established 25 years ago –Our company is engaged in "B2B services".With the passage of time, we provide customers with different services. In the era of carriers, we provide WeChat services to customers, help them get better access to the Internet and develop their business better. In the cloud era, we will provide richer connectivity products and help our customers get cloudification, use the cloud and realize digitization more efficiently in the future. Since its establishment, NEOLINK has always adhered to its original aspiration. Inherited the excellent genes of VNET Group, we will become more customer-oriented, help customers create value and realize our own value.
NEOLINK also set a small goal for ourselves. Over the past two decades, VNET Group has provided services for more than 6,000 customers. We hope that in the next five years, NEOLINK will provide services for tens of thousands of customers, and empower their business growth. We also set a goal for ourselves. We hope that through five years' efforts, our Internet technology revenue will reach RMB 10 billion. Of course, it is still a challenge to simply rely on the traditional product line of VNET Group to achieve revenue of RMB 10 billion. Today NEOLINK is officially established. From now on, we will unite more partners and establish an ecosystem to engage in this business. I'm very happy today. I'd like to express sincere thanks to more than 20 representatives of our partners for attending this ceremony. Some of them are our old friends, who have cooperated with us for many years, and some of them are our new friends. In the future, we can really create greater value for our customers together, because we are all leaders in the industry with great ambition. Now NEOLINK is a new start-up. We can accomplish more and go further together in the future.