The Rise and Challenges of Domestic Databases: Who Will Come Out on Top in the Fierce Market Shuffle
digital
Let's look at current business data first
As of the latest publicly available data, the total number of businesses in China is very large.
By the end of 2022, the private sector had more than45 million homes, a huge percentage of all types of businesses.
By the end of 2022, state-owned enterprises had about150,000 homes, of which 97 are centralized enterprises.
Current national circumstances
In the area of databases, national policy impetus is closely aligned with market demand.
- On the one hand, the government and large state-owned enterprises (SOEs) have a wide range of procurement needs for databases, and the application of domestic databases in these fields has gained significant advancement. Of course, it also contains the pressure from above, and the hard push requirements of each local SASAC make the government and SOEs become the main force of XC.
- On the other hand, with the rise of private enterprises, their demand for cost reduction, efficiency and flexible deployment has become stronger, especially in the selection of database systems, more and more inclined to cost-effective or even open source solutions.
analysis of current situation
Currently domestic databases need to maintain their market share by doing the following
- Heavily used by private companies
At present, the main user groups of domestic databases are still government departments and large state-owned enterprises, but the key to realizing the success of domestic databases lies in the ability to enter the private enterprise market on a large scale. Private enterprises are usually more concerned about cost, flexibility and reliability of technical support, so they prefer open source database systems such asMySQL、PostgreSQLetc., which poses a huge challenge for homegrown databases.
In addition, domestic database vendors are also actively promoting competitive solutions dedicated to helping private enterprises reduce costs and increase efficiency. For example, domestic database companies, such as a Base and a SQL, are attracting SME users, especially those with high data processing performance requirements and limited budgets, by launching flexible community, open-source, and personal development editions. Feed and siege the government and enterprise market through the open source ecological strategy.
- International Expansion
Domestic database to go out and gain a foothold in the international market is a major challenge faced by domestic database vendors at present. Although domestic databases have made great progress in technology, they are still facing the same challenges as the old international giants on a global scale.(e.g. Oracle, SQL Server, Amazon Aurora, etc.)of fierce competition.
To successfully "go to sea", domestic databases need to achieve world-class performance, reliability, ecological compatibility.
- Endorsements from large corporations
The success of domestic databases is largely dependent on the support of large enterprises.
For example, Tencent's TDSQL, Ali's PolarDB, and Huawei's GaussDB, all of these products have the technical, financial, and ecological support of large enterprises behind them. Such support not only helps database vendors to rapidly iterate on technology, but also plays an important role in promoting market expansion.
- strong financial position
Strong financial strength is another key factor for the success of domestic database enterprises. Without sufficient financial support, it is difficult for domestic database enterprises to survive and develop in the competitive market.
Even the listed company, Beijing UX Software, sold 100% of its wholly-owned subsidiary, UX Software (fist product: UX Database, English name: UXDB), some time ago due to operational pressure and strategic adjustments, in order to solve the risk.
In fact, the news of domestic database vendors to mention the barrel to run away is also commonplace, the former Guizhou Yi Wha Jie, followed by Beijing You Xun, especially small database vendors are more prone to thunder.
This reflects that even for relatively well-funded listed companies, capital pressure is still a non-negligible problem.
Source: /db/1844565979135836160
Source URL:/s?id=1812307184969436235&wfr=spider&for=pc
Who will win?
Combined with the current Chinese national conditions and market trends, the future competitive landscape of domestic databases will gradually become clearer.
Overall, there are several key characteristics that need to be in place for a company to win:
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Strong technical strength: must have enough technical accumulation to be able to have a leading edge in cutting-edge areas such as high concurrency, distributed, cloud native, and so on.
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Adapt to the needs of private enterprises: Provide more flexible, open-source, low-cost solutions to attract small and medium-sized private enterprises to become customers and expand a broader user base.
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Internationalization capability: not only relying on the domestic market, but also having the internationalization capability to be able to compete and earn revenue in overseas markets.
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Ecological construction: backed by the resources of large enterprises, it is able to quickly build a perfect technology ecology and business ecology to help database products expand in various industries.
summarize
The future of domestic databases lies in whether they can really be widely accepted by the market, especially the adoption by private enterprises, and their competitiveness in the international market. Combined with China's national conditions and the current market environment, database vendors that can adapt to the needs of private enterprises and have the ability to expand internationally will be expected to stand out in the fierce competition.
In the next 3-5 years, the domestic database vendors will certainly experience a large-scale market reshuffle, whether in the field of oltp, olap, htap, it is expected that the number of enterprises that will eventually survive may be less than 10. Who do you think has the hope to have the last laugh? Attached is the September data of China's database rankings from InkTinWheel for reference, only the top 20 are listed.
reference article
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