Visitors talk with exhibitors from an international trade software platform during the East China Fair in Shanghai, east China, July 12, 2023. (Xinhua/Fang Zhe)
BEIJING, Oct. 28 (Xinhua) -- China's software business export witnessed sustained growth from January to August this year, with the export value increasing by 6.4 percent year on year to 40.44 billion U.S. dollars, according to data from the Ministry of Industry and Information Technology.
It is learned that since the beginning of this year, many software companies have deeply implemented globalization strategies, accelerating overseas expansion of their software business.
-- The software industry ushers in opportunities
A report jointly released by Bain & Company and Amazon Web Services recently showed that the overall market size of global AI software and hardware is expected to reach 780 billion U.S. dollars to 990 billion U.S. dollars by 2027, with an average growth rate of 40 percent to 55 percent and the average growth rate of applications and trading platforms reaching 60 percent to 85 percent, which provides huge globalization opportunities for Chinese enterprises.
Currently, software companies in China are facing development opportunities for simultaneous expansion of supply and demand, said Huo Hongyi, founder of a business strategy consultancy.
On one hand, the accelerated development of global generative AI, cloud native, and industry digitization means that the scenario side is unleashing unprecedented purchasing power and trial and error space, Huo noted.
On the other hand, Chinese software enterprises have formed long-term advantages in mobile internet, large-scale engineering and efficient iteration, and through cooperation with global cloud manufacturers, these advantages are transformed into an exportable product and service portfolio, Huo added, noting that the dual drive of technology and market is constantly driving China's software industry to fully "go global".
The global software industry is shifting from cloud-focus to AI-focus, and Chinese manufacturers are embracing new opportunities for speedy development, said Lu Kelin, CEO and founder of Lukedao Technology, adding that generative AI, low code, real-time audio and video product modules developed in domestic scenarios can be directly embedded into the global SaaS ecosystem, effectively reducing marginal costs.
Based on the market characteristics of different countries and regions, software companies can achieve the optimization goal of converting product efficiency advantages into overseas gross profit growth by focusing on product data compliance and localization adaptation, noted Lu.
-- Enterprises are implementing globalization strategies
A number of listed companies are now deeply implementing globalization strategies, accelerating the expansion of their software business overseas.
For instance, Hundsun Technologies Inc. (600570.SH) has launched i2, an integrated solution for securities firms to support foreign capital in investing in China's market. The solution enables unified management of over-the-counter total return swaps and on-exchange proprietary hedging transactions, and provides ultra-fast hedging execution specifically for return swap business, thereby offering overseas clients support for cross-border return swap.
As a leading provider of information security products and service solutions, Hangzhou DBAPPSecurity Co., Ltd. (688023.SH) has launched multiple core software products such as WAF web application firewall, NDR network detection and response, etc., meeting overseas requirements with localization adaptation to maximize synergies across the product matrix.
The company has achieved remarkable success in its global market expansion, establishing stable strategic partnerships with local firms in Malaysia by providing customized solutions for local enterprises in sectors such as consulting and manufacturing, and delivering professional cybersecurity products and services to clients in Indonesia's financial, healthcare, and energy sectors.
Beijing Kingsoft Office Software Inc. (688111.SH) signed a strategic cooperation agreement with Omantel recently. The two sides will integrate their respective strengths to promote the WPS 365 International Edition among enterprise clients in Oman, so as to significantly enhance the customer experience across various industries in Oman and other Gulf Cooperation Council member states by leveraging the software's integrated cloud documentation, AI, and collaboration capabilities.
As of June this year, Beijing Kingsoft Office Software Inc. has extended its services to users in over 220 countries and regions worldwide. The company's product, WPS Office, reached 651 million monthly active devices globally, representing an increase of 8.56 percent year on year.
Huo Hongyi emphasized that Chinese software enterprises should focus on user experience and global availability of products, and can establish deep partnerships with global cloud providers based on market access and technological infrastructure, and secure a foothold in key sectors and regions through integrated coordination across marketing, sales, and delivery.
In terms of product compliance, software companies should establish a portfolio of certifications based on international mainstream standards, so as to shorten the procurement cycles for major clients and create long-term brand influence.
(Edited by Gu Shanshan with Xinhua Silk Road, gushanshan.1987@163.com)
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