Shen Yao's Technology Observation
Understand technology and win the future!
Wu Xiaobo wrote in the book "Thirty Years of Stirring": "When this era comes, it will be unstoppable. Everything will grow wantonly, dust and dawn will rise, rivers will converge into rivers, nameless hills will rise into peaks, and the world will open up for a while."
If this is used to describe the Internet market in Latin America, it can be described as "appropriate". Currently, there are 375 million Internet users in Latin America, and 360 million mobile Internet users. As the demographic structure tends to be younger, the four industries of e-commerce, games, social media advertising and Fintech are growing the fastest. In 2020, the growth rate of e-commerce in Latin America will be 36.7%, the growth rate of users will be 32%, and the Internet market consumption will reach 200 billion US dollars.
As a result, the Internet economy in Latin America has also ushered in the eve of an explosion. Businesses such as games, live broadcasts, e-commerce, and financial technology are developing in full swing in the Latin American market. Similarly, more and more Chinese companies in various tracks are also exporting their Chinese business models to the Latin American market, hoping to find more new business opportunities.
Undoubtedly, Latin America has become a region with great potential for the international development of the Internet. In this emerging market full of opportunities, it is both a challenge and an achievement to accurately understand business and integrate different cultures. So, how should companies going overseas calmly deal with risks and find new opportunities?
On May 21, at the "Intelligent Exchange and Win-Win Xingyao Latin America" Internet leader exchange meeting, HUAWEI CLOUD and its partners "presented their own experiences" to "eliminate doubts" for overseas enterprises, not only providing experience for reference and reference, but also opening up a new channel for enterprises to go overseas.
"It's time" to win the Latin American market
In 2020, although the global market is greatly affected by the epidemic, the enthusiasm of Chinese companies to go overseas remains undiminished. Among them, the Latin American market has become the new focus of Chinese manufacturers going overseas. AppsFlyer's report shows that entertainment and social apps from China have achieved strong growth in the Latin American market. It can be said that the Internet development in Latin America is like China 6-8 years ago. It is on the eve of the outbreak and has huge opportunities. The reasons behind it can be observed from three dimensions:
First, the Latin American market has a sound economic foundation. Although affected by the slowdown of the global economic recovery, Latin America's economic growth has also been impacted, and the per capita GDP level has decreased accordingly, but its consumption still accounts for more than 64% of GDP. In addition, the middle class in Latin America currently accounts for about 30% of the total population, which is comparable to that in China. The strong consumption demand of the middle class has stimulated the growth of the Internet market.
Second, Latin America already has a considerable scale in terms of Internet penetration. In addition to the huge Internet user base, data from Hootsuite also shows that the current Internet penetration rate in Latin America has reached about 70%, and the average daily usage time is close to 10 hours, of which 5 hours are mobile Internet. These indicators are much higher than those in Southeast Asia, South Asia, Africa and other developing countries.
Finally, the epidemic has further accelerated the digitalization process in the Latin American market. In the past year, Latin America's real economy has been hit by the epidemic, but its online business vitality has shown an explosive trend. Statistics show that the fintech investment and e-commerce market in Latin America has become the fastest-growing market with the greatest potential in the world. In particular, the epidemic has accelerated the turnover of pharmaceuticals and other categories of goods, and the transportation of special items such as vaccines has also promoted the upgrading of the logistics industry. This will make the growth rate of e-commerce in the Latin American market as high as 36.7% in 2020, ranking first in the world.
Of course, it must also be noted that although the Latin American market has good growth potential, the Latin American market has its own particularities after all. It is often difficult to purely copy the past model of the Chinese market. Not only will it face localization challenges such as culture, supervision, and services, but its imperfect cloud infrastructure also brings great obstacles to overseas companies.
For example, in terms of regulatory policies, Latin American countries have successively issued differentiated privacy protection laws. In August 2020, the Brazilian Privacy Protection Law came into effect, and some clauses are more stringent than the GDPR requirements. For example, it is required to respond to the data subject’s rights request within 15 days. This requires the certainty of legal compliance to deal with the uncertainty of local regulation, thus crossing the risk of discontinuity brought about by the macro environment.
Another example is the problem of service experience. Due to the imperfect cloud infrastructure construction in Latin America, many overseas companies need to cover Latin America through North American nodes. From Mexico to Argentina, the transmission distance is nearly 10,000 kilometers, which makes problems such as network quality and delay occur frequently. In addition, the response speed of technical services and the ability to solve problems in a timely manner caused by jet lag problems become "incapable". How to solve these problems also poses new challenges for overseas companies.
In addition, the issue of local payment and local customer acquisition also deserves great attention. The payment system in Latin America is quite complicated, which requires companies going overseas to make preparations in advance. At the same time, how do companies attract traffic after entering the Latin American market? How to get customers? For overseas companies, if they cannot solve the payment problem and cannot quickly attract and acquire customers, it means that a lot of time and operating costs will be consumed.
It can be seen that although the growth potential of the Latin American market is huge and the Internet is on the eve of the explosion, it also brings unprecedented challenges to overseas companies. In the process, if there is a partner who can provide strong support for enterprises to go overseas, it will undoubtedly make their overseas trips more "effective with half the effort".
Be a "good helper" for overseas enterprises
As one of the five global clouds, HUAWEI CLOUD currently operates 45 availability zones in 23 geographical regions in overseas markets with partners. Among them, in the Latin American market, HUAWEI CLOUD Chile, Brazil, and Mexico regions have successively opened services. It has become the cloud service provider with the most local data centers in Latin America. It can provide global public cloud services with global consistent experience and consistent business performance for enterprises, and can fully serve overseas enterprises to enter the Latin American market.
Liu Fei, President of Huawei Cloud Business Unit in Latin America
Not only that, but in the process of serving enterprises going overseas, HUAWEI CLOUD has accumulated rich experience in overseas operations, clearly understood the requirements of overseas enterprises for cloud service providers, and thus formed a differentiated competitive advantage. As Liu Fei, President of Huawei Cloud Business Unit in Latin America, said: "Huawei has been working in Latin America for 20 years, and at the same time has built a strong cloud local advantage. It can provide local nodes, local services, local payment, local collaboration, and optimal cloud services. We are willing to be the most solid partner of overseas enterprises."
First, in terms of network coverage, HUAWEI CLOUD can not only provide the most local nodes in Latin America with the smallest local delay, but also provide cloud services with the best performance and the most affordable prices.
Based on Huawei's 20-year in-depth cooperation with operators in 30 countries in Latin America, HUAWEI CLOUD has connected more than 1,000 peer networks in Latin America, covering mainstream ISPs and ICPs. At the same time, HUAWEI CLOUD has achieved access delays of less than 100ms for any country in Latin America through the coverage of the three core regions in Latin America. In addition, HUAWEI CLOUD has built an application-centric cloud-native infrastructure through architectural innovation, software innovation, and system engineering innovation. It is the first cloud service provider in Latin America that supports live broadcast services and can provide optimal cloud services.
According to the "Worldwide cloud infrastructure services market Q4 2020" report released by the market research firm Canalys, the public cloud market data in Latin America shows that Huawei Cloud has risen to the top four, with the fastest growth rate among TOP vendors, and is the fastest growing cloud service provider in Latin America.
Second, in terms of service support, HUAWEI CLOUD has created a 7*24-hour dedicated local team to ensure business stability and security. On this basis, HUAWEI CLOUD can also help overseas companies in terms of local payment and local regulatory compliance, which provide important support for Chinese companies to use the cloud to go overseas and win the Latin American market.
Taking local payment as an example, HUAWEI CLOUD provides a variety of flexible payment methods for overseas enterprises, and supports onshore payment for region countries. At the same time, it can realize contracting in one place, use multi-country resources, and conduct business at the local exchange rate. In terms of local regulatory compliance, HUAWEI CLOUD also strictly abides by compliance requirements such as operation, operation and maintenance, and privacy data security.
In fact, network security and privacy protection are Huawei's top program. Huawei will build and fully implement an end-to-end global network security system as one of the company's important development strategies. To implement this strategy, Huawei announced that it will invest US$2 billion in the security field over the next five years.
At present, HUAWEI CLOUD has passed 70+ global compliance certifications, and can provide overseas enterprises with cloud services that comply with domestic and foreign security regulations. As early as 2018, HUAWEI CLOUD obtained the first full-node full-service full-platform PCI-DSS certification in China. This is currently the most stringent, highest-level, and most authoritative security certification standard for financial institutions in the world. This allows all HUAWEI CLOUD users to enjoy financial-level security. In July 2020, HUAWEI CLOUD's 108 key security capabilities underwent multiple rounds of rigorous evaluation, and also passed the highest-level certification of the NIST CSF network security framework, becoming the first cloud service provider in China to obtain NIST CSF certification, and can provide users with secure and reliable cloud services on a global scale.
Third, in terms of collaborative innovation, HUAWEI CLOUD also uses innovative methods such as brand activities + operator rights + HMS collaboration to help Chinese corporate customers "go overseas without worry" in terms of marketing promotion and local operator docking.
In particular, HUAWEI CLOUD launched the HMS ecological support plan, which can help Internet companies going overseas to reduce customer acquisition costs and integrate into the local ecology. The HMS Ecosystem Support Program is a global partner program launched by HUAWEI CLOUD for HMS developers and ecosystem partners, which can help Internet application developers/ecology partners develop, test, and deploy on HUAWEI CLOUD better, faster, and at a lower cost. To this end, HUAWEI CLOUD has invested 100 million US dollars to support the plan, and application and game developers who access the HUAWEI AppGallery and integrate HUAWEI HMS Core components can join.
It is not difficult to see that by serving more and more overseas enterprises, HUAWEI CLOUD has accumulated rich experience in overseas localization operations. It can not only provide "domestic consistent service standards" for overseas enterprises, but also provide a compliance system in line with the Latin American market. It provides mature "one-stop" solutions for more overseas enterprises and accelerates the journey of Chinese enterprises overseas. It is a veritable "good helper" for overseas enterprises.
Open up a "new channel" for enterprises to go to sea
Newton once said, "If I see farther than others, it is because I stand on the shoulders of giants." Indeed, in the face of overseas markets, today's overseas companies can also stand on the shoulders of "giants" like Huawei Cloud, able to see farther and walk more steadily.
It is worth mentioning that, in addition to serving Chinese companies going overseas, HUAWEI CLOUD also provides important support for local corporate customers. In Mexico, HUAWEI CLOUD helped Cashcash in Mexico quickly develop its loan business and achieve rapid growth in sales and user numbers. Cashcash is an Internet financial service provider that provides microloans in Mexico. It relies on HUAWEI CLOUD to achieve localized deployment, meet data localization compliance requirements, reduce investment costs by 20%, and achieve rapid growth in sales and user numbers. Today, HUAWEI CLOUD has become the most trusted partner of Cashcash.
In Africa, HUAWEI CLOUD helps Kilimall become the most trusted e-commerce platform for African consumers. Kilimall, established in 2014, is the largest online shopping platform in Africa. It conducts business in countries such as Nigeria, Kenya, and Uganda. To support rapid business development, Kilimall uses HUAWEI CLOUD's high-performance, highly reliable Kubernetes container application management service and elastic load balancing service, thereby realizing rapid business deployment and flexible business scaling.
From these cases, we can see that relying on the extensive global data center node layout, HUAWEI CLOUD services are closer to local users and can bring lower latency and faster response services to local customers. This is also the key to HUAWEI CLOUD winning the trust and choice of more and more customers around the world.
More importantly, HUAWEI CLOUD is also actively conducting research and development and technological innovation for the future. For example, in AI and other cutting-edge technology fields, HUAWEI CLOUD can provide consumer-grade AI development platforms and API interfaces for overseas enterprises. Among them, ModelArts, a one-stop AI development and management platform of HUAWEI CLOUD, can increase the training speed by 10 times, which can reduce the model development cost and time of Internet companies. ModelArts also adds the enterprise-level AI application development kit ModelArts Pro. This kit has accumulated a lot of industry experience and can help companies quickly develop models based on industry application scenarios.
In addition, in response to the needs of Internet companies, HUAWEI CLOUD is also based on full-stack technological innovations to continuously improve the competitiveness of services and solutions such as bare metal containers, big data storage and computing separation, cloud games, and OBS+CDN, helping customers reduce costs and increase efficiency. At present, HUAWEI CLOUD has provided industry solutions such as game export, cross-border e-commerce, audio and video for many top Internet customers, helping Internet companies to carry out business innovation and build core competitiveness.
Chen Liang, President of International Huawei Cloud Business Unit
In this regard, Chen Liang, President of the International Huawei Cloud Business Department, finally said: "Huawei Cloud's global node layout and high-speed inter-cloud network can support the global deployment of enterprises.
In general, in the post-epidemic era, Chinese companies face many development strategic opportunities to go overseas. At the same time, countries are also more and more aware of the value of China’s technological innovation and the responsibility of Chinese companies through the process of fighting the epidemic. Especially in the context of increasing economic downward pressure, China’s successful Internet model and digital economic services can bring profound value to global markets. These are unprecedented in the “window” of companies going overseas in the past.
From this perspective, Chinese enterprises going overseas is still an essential step in the process of deepening globalization, and it is even more crucial. Relying on rich experience in overseas markets, the strength of one-stop solutions, and successful customer practice verification, HUAWEI CLOUD will provide reliable security for many overseas enterprise customers, and will also become the most solid partner of overseas enterprises.
Shenyao's Science and Technology Observation was founded by Shen Ji, a self-media person who crosses the border between technology and automobiles. He has 18 years of experience in enterprise-level technology media work, focusing on the observation and thinking of enterprise digitalization, industrial intelligence, smart cities, and automotive technology content.
