[For value-added data service] - [in SAAS]
[The start]
China Telecom gave us a call in mid-2006, saying: "Through our research on contemporary ERP/SCM products, and open assessments and evaluations in 33 aspects, we found that your system works superbly and is able to meet 32.5 out of them. Could you please come over for a further discussion?" Of course we could.
The thing is China Telecom wanted develop a new line of business to lease their ERP/SCM product to their Internet users to increase their overall revenue. They had set up their target product framework and searched complying products from the market, and eventually they locked on us.
[Opinion differences]
Question1: Where should the users save their business data?
China Telecom’s answer:
They insisted that the user’s business data should be saved in their own data centre, or how can they keep everything in control and ensure the customers would pay duly?
Our disagreement:
Business data is invaluable assets to any company. How can we persuade them to save their data in a public place?
If two competitors both are our users, with their data both saved in the same place, can we imagine what a disaster it could be?
Question2: If a user’s headquarter and branches are located in different provinces of China, where should they save their business data?
China Telecom’s answer:
The data must be saved in the same place of the Internet connection, and the user has to sign separate contract with different branches of China Telecom, as different local China Telecom companies operate independently.
Our disagreement:
Then the users will have to be saved in several individually data of accounts, therefore making integrated operation and management will turn to impossible. They will definitely reject this idea.
Question 3: What’s the monthly charge to the user? How much can we get? Who provide services to users?
China Telecom’s answer:
For users, each Internet access point costs RMB800 per month, regardless of how many actual connections they have at the same time. The more connections, the slower the speed will be. You will have to do all services, and you will get 100-150 RMB per month per access point.
Our disagreement:
The charge should be based on the actual number of clients using our software, rather than the number of Internet access point. In fact, you can charge separately based on the actual number of software users.
Then we can talk about how much money each party can get.