Tech companies like Oracle and International Business Machines (IBM) invested heavily to build new markets in China for their industry-leading databases. Improving the part by mounting US tensions, one Chinese upstart is stepping in, winning over tech giants, start-ups and financial institutions to its enterprise software.
The Beijing based PingCAP has already counted more than 300 Chinese customers. Many, including food delivery giant Meituan, its bike-sharing service Mobile video streaming site iQIYI and smartphone maker Xiaomi are migrating away from Oracle and IBM’s services toward PingCAP, encapsulating a nation’s resurgent desire to Buy China.
Img SRC: Aithority
The ascendancy of PingCAP comes as the US cuts Huawei Technologies off from key technology, sending chills through the country’s largest entities while raising questions about the security of foreign-made products. That is a key concern as Chinese companies modernise systems in every industry from finance and manufacturing to health care by connecting them to the internet.
Oracle claimed to begin hundreds of lay-offs in China
Img Src: Bloomberg
China has long tried to replace foreign with home-grown technology, particularly in sensitive hardware – it imports more semiconductors than oil. That imperative has birthed global names like Huawei and Oppo and even carried over into software in recent years, as Alibaba Group Holding (which owns the South China Morning Post) and Tencent Holdings expand into cloud services. That attempt has gained urgency since Washington and Beijing began to square off over technology. “China has always planned to use domestic tech in areas like cloud, it’s been very successful,” said Julia Pan, a Shanghai-based analyst with UOB Kay Hian. "Since it wants to use Chinese chips, its technology is just not there, but when it’s mature enough, they very likely will replace overseas chips with domestic ones.”
Now, the inner circle of upcoming start-ups are encouraging Chinese firms to go local. To allow users to store and locate data on everything from online banking transactions to the location of food delivery customers usually use PingCAP to manage databases and improve efficiency.