Edianyun, a leading office IT integrated solution provider in China, filed its IPO application to the Hong Kong Stock Exchange, with China International Capital Corporation as its sole sponsor.
Beijing, China, July 19, 2022 (GLOBE NEWSWIRE) -- On February 28, 2022, Edianyun, a leading office IT integrated solution provider in China, filed its IPO application to the Hong Kong Stock Exchange, with China International Capital Corporation as its sole sponsor. Founded in 2014, Edianyun has quickly grown into a unicorn company that is widely praised in China’s office IT industry, leveraging its innovative subscription-based office IT solutions that address the needs of small and medium-sized enterprises for scalable IT operation.
SMEs traditionally acquire majority of office IT infrastructure through direct-buyout mode, meaning purchasing devices and software licenses directly from PC brands, software suppliers and distributors. This mode requires one-off upfront expenditure for the full cost, and subsequent burden of office IT operation. For most Chinese SMEs, office IT is a non-core but increasingly critical function to support core business, driven by continuous trend of digital transformation. However, the traditional direct-buyout mode requires them to operate office IT in an asset-intensive way and to manage IT operation complexity by themselves, limiting SMEs’ ability to scale up IT operation that should keep pace with core business growth.
Edianyun targets these pain points by providing one-stop, reliable and flexible office IT integrated solutions covering both IT infrastructure and managed IT services. Its pay-as-you-go subscription method features usage-based monthly payment that allows SMEs to pay for only the IT resources they use and value-added managed IT services, which free the customer from operating their office IT and enable them to focus on core business. Subscription rates are based on the number of devices used, device specifications, scope of managed services and customers have the flexibility to add, reduce or upgrade subscriptions anytime.
From buyout to subscription, SMEs can allocate their office IT spending more efficiently. In terms of IT infrastructure costs, using Edianyun’s on-demand subscription can satisfy the fluctuating needs in IT infrastructure, avoid idle equipment in the off-season business cycle, and allow for more budgets to scale up and upgrade IT infrastructure flexibly. For SMEs who are always prudent in managing cash flow, no more capital needs be tied up in non-core office IT assets.
From the perspective of the long-term operation of office IT, Edianyun’s subscription solution offers SMEs ongoing managed IT service that can reduce hidden costs in contrast to direct-buy out mode，including repair, inhouse office IT personnel, and loss of business due to office IT interruption, etc. Unlike traditional suppliers who only provide basic equipment warranty, Edianyun's managed IT services meets customers needs in various operating scenarios, which are covered under service level commitments. With a nationwide service network, Edianyun’s IT specialists can provide door-to-door service in 2-4 hours. For lighter issues, its remote service desk responses in 30 minutes 24x7. This managed service model has successfully supported customers to scale up office IT by reducing complexity. SMEs no longer need to keep a large inhouse team or engage with multiple vendors to solve different types of issues, knowing that all the support needed and associated costs are already included in their subscriptions with Edianyun.
Edianyun’s effective value propositions are evident in its operating metrics. As disclosed in its prospectus, Edianyun has achieved outstanding customer retention with net dollar retention rate of about 130%. At the same time, it is already serving over 38,000 enterprise customers, with over 1 million devices under subscription. More importantly, it has turned net profit on top of its high revenue growth.
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