Yonyou to step up push to promote cloud business
Leading Chinese software company Yonyou Network Technology Co Ltd will step up the push to promote its cloud business, as local enterprises scramble to accelerate digital transformation, said Wang Wenjing, its chairman and CEO.
Unlike internet heavyweights Alibaba Group Holding Ltd and Tencent Holdings Ltd, which are branching into the cloud sector as computing infrastructure providers, Yonyou aims to function as an application platform where diverse software applications are available to different sectors, Wang said.
Founded by Wang in 1988, Yonyou is best known for its accounting software in China, where the Beijing-based company accounts for 24.6 percent of the local market. Later, its business expanded to more management software products, including enterprise resources planning.
"Nowadays, moving business to the cloud is an important way for companies to push forward digital transformation. Yonyou will build a cloud-based application platform where companies can access different software to meet their specific needs," Wang said at a major conference in Beijing to mark the 30th year anniversary of the company.
So far, about 2.7 million enterprises and government agencies in China are using the company's software. More than 4 million enterprises have registered on its cloud service platform as clients, with 290,000 of them being paid clients, Yonyou said.
"We aim to serve more than 10 million clients with cloud services in the future," Wang added.
The company's ambition came after the Ministry of Industry and Information Technology, China's top industry regulator, rolled out favorable policies to encourage enterprises to embrace cloud services.
The ministry said it planned to encourage about another 1 million enterprises to move their businesses to the cloud by 2020.
In the first half of this year, Yonyou's revenue grew 37 percent year-on-year to 3 billion yuan ($438 million). Its net profit hit 124 million yuan, with a year-on-year growth rate of 294 percent.
