深信服20250219

Summary of the Conference Call for 深信服 (Sangfor Technologies) Company Overview - 深信服 is primarily a network security company that began expanding into cloud computing in 2012. By 2023, cloud computing accounted for 40% of the company's total revenue, up from just 5% in 2015. The compound annual growth rate (CAGR) for cloud computing revenue from 2019 to 2022 was 33%, significantly higher than the 11% growth in security business during the same period [3][4]. Key Points and Arguments Cloud Computing Business - The cloud computing business includes integrated hardware and software products, as well as subscription-based offerings. Integrated products, such as HCI hyper-converged desktop cloud and EDS high-performance storage, dominate revenue due to established channel advantages and sales barriers [3][4]. AICP Computing Platform - The AICP computing platform offers a comprehensive suite of AI solutions, including hardware, resource management tools, large model deployment tools, and AI application development support. This platform aims to facilitate rapid deployment and utilization of AI capabilities for enterprises [4][5]. - AICP is designed to work synergistically with existing hyper-converged infrastructure, allowing companies to reuse IT architecture and enhance user experience, potentially leading to a surge in downstream demand and a revaluation of the company [4][8]. Competitive Advantages - 深信服 possesses strong product design capabilities and a robust product matrix that enhances the integration of new platforms with existing architectures, improving user convenience [9][11]. - The company has a well-established channel network that spans various industries, including government, finance, and telecommunications, which can be leveraged to increase market share for new products [9][11]. Market Trends and Innovations - The democratization of large models, such as DeepSeek, is driving application innovation. Major platforms like WeChat and the three major telecom operators have integrated DeepSeek, fostering a blend of consumer and business scenarios and increasing demand for efficient, ready-to-use AI applications [10][11]. Strategic Alignment - The AICP platform aligns with 深信服's overall strategy of transitioning from hardware sales to becoming a software-driven and comprehensive solution provider. This shift is expected to enhance customer value through a "platform + components + services" model [12][13][16]. Valuation Changes - The valuation of 深信服's cloud computing business has evolved. Initially, the market used PE valuation for security business and PS valuation for cloud computing due to its rapid growth. However, a slowdown in growth has led to a decline in PS valuation. With renewed demand for AI deployment, there is potential for a resurgence in cloud computing growth and a reversion to a more favorable PS valuation [17]. Future Outlook - The AICP product line is anticipated to have significant growth potential, with GPU services expected to surpass CPU servers in value. The surge in demand for AI deployment is likely to empower the cloud computing business and drive overall performance recovery and valuation restructuring [18]. Additional Insights - The company emphasizes that it should not be viewed merely as a hardware sales entity, as its core value lies in software realization. The transition to a comprehensive solution provider reflects a strategic shift towards maximizing customer lifetime value [13][14]. Recommended Reading - Investors are encouraged to review previous in-depth reports on the company's cloud computing business and recent commentary on the AICP platform to gain a comprehensive understanding of the company's dynamics and future prospects [19].