Kingdee looks to expand cloud service revenue

Enterprise software giant Kingdee expects cloud services to contribute 80 percent of its revenue within two to three years, thanks to booming digital transformation demand among companies after the pandemic, the Hong Kong-listed company said on Thursday.

Kingdee’s cloud revenue accounted for 58 percent of the company’s total income in the first half after the pandemic outbreak, compared with 39.5 percent in 2019.

Kingdee is one of the top enterprise software giants in China with several million clients in manufacturing, retail, real property and other industries. During the COVID-19 pandemic, Kingdee sought new opportunities to provide them with its cloud platform, Cangqiong, which features over 200 industrial applications. The company obtained new enterprise clients during the epidemic to replace global giants like IBM and SAP.

In the second quarter, cloud infrastructure spending reached a record high of US$4.3 billion in China, growing 70 percent year on year. Fueled by COVID-19 response demand and government stimulus measures, enterprises are investing more in cloud services, according to Canalys.

With partners like Alibaba Cloud, Huawei Cloud and AWS, Kingdee is the No. 1 player in the software-as-a-service sector in China, according to researcher IDC.

Kingdee plans to continue investment in cloud research and development. It has also announced plans to double its cloud research team to 2,000 employees in the near future.