Media Presentation November 8th, 2011
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1 November 8th, 2011
2 What do we announce today? The alliance between and The Leading European IT services company The #1 Software company in China To jointly market cloud computing solutions for corporate customers in Europe To expand their geographic footprint in Europe and Asia 2
3 To enter the cloud service market Atos & UFIDA are forming a Joint Venture YUNANO (transliteration Cloud & Safe ) will provide innovative cloud computing services for corporate customers in Europe, the Middle East and Africa (EMEA) Will sell Software as a service (ERP, CRM, ) to Europe, Middle East and Africa medium-size organizations, in particular subsidiaries of large groups, or emerging country enterprises for which traditional ERPs are too expensive and cumbersome 3
4 Why Cloud Computing is coming? A standardized service A pay-per-use service A self-service All three conditions need to be filled in order to speak about Cloud Computing Benefits: Cost savings OPEX vs CAPEX Flexibility Business efficiency 4
5 Why SaaS is the most promising service of Cloud Computing? 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% What percentage of your software license spending will go to the following types? (planned) 5 Traditional Software Licensing Subscription & other licensing models Source: Enterprise And SMB Software Survey, North America And Europe, Q3 2007; Enterprise And SMB Software Survey, North America And Europe, Q4 2008; Enterprise And SMB Software Survey, North America And Europe, Q4 2009; and Forrsights Software Survey, Q Note: Each survey predicts spending for the upcoming year.
6 Agenda Who is UFIDA? Atos & UFIDA, overview of YUNANO Appendix : Cloud Computing and ERP: context and opportunities 6
7 The Asia-Pacific leader in software The Asia Software leader Largest local management software supplier in the Asia-Pacific, Over enterprises are using UFIDA products, Over 50 thousands enterprise choose UFIDA products software every year, Over 3 million users are using UFIDA products every day. An impressive footprint Headquartered in Beijing; listed on the Shanghai Stock Exchange (SSE: ) The largest enterprise management software R&D Center in Beijing, A Manufacturing Industry R&D Base in Nanjing, An advanced Applications Research Center in Shanghai, An Electronic Industry R&D Campus in ShenZhen, The largest service network in China's management software industry for support service, implementation, and training, 200 subsidiaries and branches, 60 customer service centers, 150 training and education, Presence in Japan, Thailand, and Singapore. 7
8 A World-Class management software and services provider 1988 Founded in 1988, 23 years of development Largest local accounting software provider in China Largest ERP and management software provider in China Largest ERP and management software local provider in APAC Now Total employees : 12,000 To become World-Class management software and services provider 8
9 UFIDA s market position in China Leader in Management Software UFIDA 22.8% Kingdee 9.8% SAP 9.8% Rank #1 for 9 consecutive years. Exceed the sum of Second and Third. Data Source:CCID Annual Market Research Data 9
10 UFIDA s #1 market position in China Leader in ERP Software UFIDA 28.3% SAP 13.5% Kingdee 12.0% Data Source:CCID Annual Market Research Data Rank # 1 for 9 consecutive years. Exceed the sum of Second and Third. 10
11 UFIDA s #1 market position in China Leader in Financial Software UFIDA 27.5% Kingdee 15.4% SAP13.6% Rank # 1 for 19 consecutive years Data Source:CCID Annual Market Research Data 11
12 UFIDA s #1 market position in China The largest Group Management Software Provider The largest HRM(Human Resources Management) Software Provider The largest CRM(Customer Relationship Management) Software Provider The largest Small-enterprise Management Software Provider The largest Financial & Administrative Unit Management Software Provider Data Source:CCID Annual Market Research Data 12
13 UFIDA Product Portfolio 13
14 UFIDA: 1,2M+ Corporate Customers Discrete Manufacturing Process Manufacturing Distribution Service Real Estate & Construction 南 方 水 泥 F S I Telecom Military & Energy Conglomerate Government & Authorities 14
15 Agenda Who is UFIDA? Atos & UFIDA, overview of YUNANO Appendix : Cloud Computing and ERP: context and opportunities 15
16 Atos vision of the IT Market Market segment Customers expectations Atos Answers Business Enabling IT Services Core Business innovation Competitive differentiation Top Line Growth and profitability HTTS Development Specialized BU for specific sub-markets (Worldline, Worldgrid, MEV, ) Vertical portfolio Expertise and Go-To-Market Foundation IT Services TCO Decrease Flexibility IT Standardization Industrialization Off-shore & Global delivery Cloud : AtoSphere One stop-shop for global customers Technology partnerships 16
17 FUNDAMENTAL IT BUSINESS CRITICAL IT UFIDA Alliance fits into Atos Strategy IT services to support customers top line growth for their: Competitive positioning Time to Market Innovation Atos answers: Industry expertise HTTS portfolio roll out Key Offerings, Atos WorldGrid ISRM, Civil & National Security Be the world leader in Critical IT services IT services for support systems delivering: Lower TCO s Standardization Pay as you Go Agility & Reliability Atos answers: Global factories, Global tooling Offshore ramp up, Atos Sphere Be n 1 in our home market (size matters) Be the European leader in Cloud 17
18 An alliance to extend Atos geographical footprint employees (most of them engineers) 8.7 B revenues (pro-forma 2010) Number of employees by country (12/2010 pro-forma figures) 18 18
19 YUNANO: Business Objectives Cover CRM/ERP product lines Target SaaS mode as priority Address medium and subsidiaries of large organizations from the targeted industries Reach top quartile profitability in the ERP market Create a first class eco-system of distributors and integrators in the targeted geographies Accelerate localization and customization of UFIDA products in EMEA The JV addresses in priority the ERP SaaS market for mediumsize organizations, in particular subsidiaries of large groups, or emerging country enterprises for which traditional ERPs are too expensive and cumbersome 19
20 YUNANO: Business Model Customer Customer Customer Customer Customer Customer Provides SaaS infrastructure Customer Customer Customer Customer VAR SaaS 70% 30% JV Sales & Marketing Professional Services Localization SaaS Operations Provides product adaptation and Support Customer Customer 20
21 YUNANO: Value Proposition YUNANO Software Company Consulting System Integration - Application Management Managed Services - Application Tech. Management ATOS SPHERE Dedicated Cloud Platform YUNANO solution benefit: run your entire business with a single, cloud-based application Integrated system Available by subscription and on-demand Scalable, cost-effective, and burden-free Thoroughly tested to ensure continuous, secure, and reliable service delivery 21
22 Appendix Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud and Atos WorldGrid are registered trademarks of Atos SA. June Atos. Confidential information owned by Atos, to be used by the recipient only. This document, or any part of it, may not be reproduced, copied, circulated and/or distributed nor quoted without prior written approval from Atos.
23 Security Consulting Which service offering does Cloud Computing cover? BaaS SaaS Business Process Layer Presentation & API Applications Data Business Process as a Service (BPaaS) Next level of Cloud collaboration: not only IT based services HTTS High Tech Transaction Services Software as a Service (SaaS) A configured application licensed for use on demand by an Application Service Provider Accessed remotely over the Internet or downloaded to device, disabling it after license expiry PaaS IaaS Middleware & Integration Operating Sistem & API Connectivity & Delivery Abstraction Hardware Facilities Platform as a Service (PaaS) Services to support the web applications development lifecycle Virtual servers, storage, team collaboration, web services integration, database integration, security and software development facilities Infrastructure as a Service (IaaS) Storage, network and server capacity, and infrastructure applications accessed remotely over the Internet Billed by usage Virtual server usually provided from different physical servers 23
24 Overview of the Enterprise Application Software market Market 2010 (millions of USD) Estimated AGR Enterprise Ressource Planning (ERP) 20, % Office Suites 13, % Customer Relationship Management (CRM) 9, % Supply Chain Management (SCM) 6, % Enterprise Content Management (ECM) 3, % & Calendering 3, % Digital Content Creation 3, % Web Conferencing & Team Collaboration 2, % Project and Portfolio Management 1, % Enterprise Application Software Total 64, % Source: Gartner, July 2010; AGR= Annual Growth Rate 24
25 The European Mid-size ERP market is growing fast Key findings ERP European Mid-size market (On Premises + SaaS) currently worth 2.42 billion with CAGR of 7% (greater growth than large enterprise market), and revenue type breakdown for ERP software vendor as follows: Maintenance (50%) Licenses (26%) Professional services (24%) 25
26 and will be strongly influenced by SaaS Key findings SaaS currently represents only 3% of ERP market with adoption expected to accelerate sharply in 2012 with CAGR of 90% for SaaS vs 1% for On Premises SaaS adoption will be led by smaller organizations with uncomplicated integration requirements Forecast ERP market share split for 2014: SaaS worth 0.56 billion (19%) On Premises worth 2.41 billion (81%) 26
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