Lei Feng: in the low code market pattern, foreign enterprises have never been absent, we have been facing a very three-dimensional competition. This is why at this time, Chinese innovative enterprises need to put out 12 points of effort and faith. If we still look at the development prospects of low code entrepreneurship from the financial statements for the time being, most domestic brands may not be able to make profits soon, so the customer market first determines where we fight for the battlefield.
In 2019, Derek Roos, CEO of mendix, specially came to China to visit Huawei, which completed the evaluation of mendix low code platform in just six months. This incident may also indirectly affect mendix's attention to the Chinese customer market.
Before that, international brands providing low code related services, such as Microsoft's power platform, have been commercially launched in China through Century Internet, while outsystems has not yet entered China. Mendix's move may deepen the competition with domestic brands.
How urgent is it to enter China
Although the epidemic may have delayed mendix's entry into China, in fact, mendix has been recruiting for the team in China for more than half a year, hoping to provide customers with the best experience and support at the beginning of its launch.
Mendix also seems to focus on the support of local services.
In media communication, Liang Naiming, senior vice president of Siemens digital industrial software and managing director of Greater China, disclosed to Lei Feng,
You know, one of the biggest barriers for foreign brands to enter China is the difference in language and business logic at home and abroad. In particular, Chinese enterprise customers like the whole process, end-to-end personal services, so whether it is for general business personnel or professional development engineers, in the process of implementation and deployment, a large number of local landing teams need to give support.
Therefore, Liang Naiming also attaches great importance to the large number of Si in China and looks forward to participating with more partners.
What kind of market should we aim at
To meet the needs of business personnel and developers for rapid development and innovation of business, mendix provides two versions:
Mendix studio is a development environment designed for non professional developers (citizen developers). Business experts and non IT personnel can create applications;
Studio Pro is a development environment for professional developers, which can build complex large-scale enterprise applications, or add custom components as needed.
In terms of applicable core scenarios, mendix also has relatively clear division: first, innovative applications such as IOT and AI; second, customer interaction applications; third, applications for improving efficiency; fourth, scenarios involving migration or secondary development of core systems such as transaction / record layer.
In fact, before entering China, mendix had served a number of Chinese customers, including SAIC passenger car, CIMC and Foxconn's cloud smart technology services.
Mendix pointed out that low code platform is widely used in many industries, not limited to any industry. However, according to the "2020 China low code platform index evaluation report" recently released by T research, it is found that the industries with high penetration of traditional informatization, such as manufacturing, TMT and finance, are the industries with hot low code practice.
This is roughly consistent with the industry characteristics Siemens is good at.
For this reason, a reporter also mentioned whether mendix will affect the market competitive advantage of mindsphere.
Leifeng has previously reported that in August 2018, Siemens purchased mendix with us $700 million to strengthen its capabilities in the software layer; in April 2019, Siemens announced that it would launch mindsphere oriented mendix to introduce the digitization and business functions of mendix software into the development of its industrial Internet software.
At present, mendix plays a dual role as the core of Siemens software cloud strategy after integrating into Siemens ecosystem in 2018. On the one hand, as one of the software components of Siemens digital industry, it promotes the digitalization of enterprises in its industry through seamless docking with mindsphere in manufacturing industry; on the other hand, mendix has been successfully extended to non manufacturing industries such as finance, insurance, transportation and government in Europe and America.
Win the confidence of Chinese customers
However, China's low code market is still growing.
Due to the impact of the epidemic, it needs to communicate offline, so it has to start to communicate online in a remote way. At this time, an online visualization tool can help customers realize their ideas quickly. More importantly, the traditional software development time and personnel costs, has been unable to meet the business needs of enterprises, application development needs to keep up with the pace of market changes, in order to improve the productivity and market competitiveness of enterprises.
In the Chinese market, mendix sees that 90% of enterprise customers will outsource their applications to Si. It is precisely because there are many Si in China to help customers develop different businesses in different scenarios, which also leads to a large number of information islands. In addition, even if customers have very strong IT capabilities But they are still using some very traditional ways, such as waterfall to develop applications. IT department can't respond to the needs of business department in time.
According to mendix's financial year 2020 report, its total revenue is more than US $100 million, with a year-on-year growth of 75% in bookings and a renewal rate of more than 96%. The next strategic focus is Asia Pacific, including China. Nearly 10 million users create applications on mendix low code platform every week.
At the same time, according to a data from Gartner, 65% of enterprise applications in the world will become low code mode in the next four years; by 2024, 65% of enterprises will adopt low code application. It is worth mentioning that in the magic quadrant of Gartner 2020's enterprise low code application platform, mendix, servicenow, outsystems, salesforce, etc. are in the leadership quadrant.
Such transcripts and market trends may also make mendix full of confidence in the development of the Chinese market.
Competition with domestic brands
Obviously, when mendix enters the Chinese market, some people don't care about it. They think that the monks from outside can't come to China because the market environment in China is more complex and there may be some influence of policy orientation.
But in the current market environment, low code does not necessarily need to be applied to all development scenarios. Compared with ERP, CRM and other relatively stable and core business scenarios, fast changing and sensitive scenarios are one of the reasons why customers are willing to pay for low code.
It is a similar practice in the era of mobile Internet to realize the simple operation mode of application development directly. Looking at the application and practice of low code in foreign countries, it has decades of history, and its ecosystem is more mature.
In contrast, in China, the market development and even definition of low code are not so clear. Because low code is not only a part of apaas, but also a common process in the middle business. How to prevent the practice of low code and zero code from becoming castles in the air? Or a truly valuable future?
Maybe it's hard to change the customer's idea for a while. Is mendix going to pander to submission or keep himself? It may depend on its belief in the potential of the Chinese market.
It is worth mentioning that Mingdao cloud, another low code start-up company, is about to start the free mode. A new round of Tob blood rain competition seems to start again.