April 24, 2008

Zoho Launches In China With Baihui

Michael Arrington

22 comments »

This is an obvious move for Zoho, which has created a suite of online office applications: Chinese versions of their products. The Office piracy rate in China is 90+% according to Microsoft, and that market will be even more willing to use online versions of Word, Excel, Powerpoint, etc. than the U.S. and European markets have been.

The applications are being delivered via a partnership with Baihui, which hosts the Zoho sites. For now, they are launching Writer, Sheet, Show and CRM, with more applications coming soon.

Since the software is being run independently by Baihui, users will not be able to share documents with normal Zoho users. However, Zoho itself supports 11 different languages (English, Japanese, Chinese, Dutch, Danish, Russian, French, German, Italian, Spanish and Swedish), so they also compete directly with this new distribution partner.

The only non-free application being launched in China now is CRM. The price is 99 RMB/user/month, which is about $14. That’s actually more expensive than the $12/user/month that Zoho charges in the U.S.

Zoho says that 50% of their usage today is already outside of the U.S., but their site is very slow inside of China due to the firewall. This partnership gets them onto the other side.

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Trackbacks/Pings (Trackback URL)

  1. Zoho Blogs
  2. Zoho Launches in China @ Baihui.com| Zoli’s Blog
  3. Zoho暗渡百会,引入中文在线编辑应用平台 | SilenceWolf
  4. 百会: ZOHO在线编辑应用程序的中文化策略 | 帕兰映像

Comments

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  1. Daniel Brusilovsky

    I don’t think Zoho will be that big in China, but its still news :)

    ~Daniel Brusilovsky
    http://www.danielbru.com
    http://www.twitter.com/danielbru

  2. Siddharth

    Lest see their results in coming months. It’s not easy to get popular in China. Google had already suffered to make dominancy there because China have its own language popular web search engine there. Lest see what future have. :-D

  3. Peter Urban
  4. Siddharth

    I don’t think Zoho will be that big in China, but its still news :)

    http://gomel-sat.net

  5. Sridhar Vembu

    Actually, in practical terms, it is quite painful to use any serious application hosted outside China, from within China. So hosting it in China is vital in order for us to gain serious traction. In that sense, our Chinese language support in Zoho doesn’t really compete with our distribution partner in China. After all, there are over 50 million Chinese language speakers living outside of China, which is what our own Chinese language pack really targets.

    We are quite excited about the potential of this partnership. Baihui brings serious distribution muscle in China.

    Sridhar Vembu
    CEO
    Zoho

  6. Peter Urban
  7. Chris

    “but their site is very slow inside of China due to the firewall.”

    Can any one confirm the non-madeupness of this comment?

  8. THE1000LINKS

    Wondering if Google docs has the same speed issue in China??

  9. 符碼印象

    中國似乎一直都有防火牆的限制 這倒是給外國廠商一個進入門檻~

  10. Et

    “their site is very slow inside of China due to the firewall”

    The great firewall of China is starting to sound as much a tool for protectionism then censorship. If the Chinese market is protected by cultural differences, it’s one thing, but if the Chinese government is deliberately slowing down outside applications to ensure it’s own market, that’s anti-competitive. What does the ICC think of it?

  11. Zoli Erdos

    @Chris, see @Sridhar at #5 above. The US-based site was slow when accessed from China. Baihui set up their own data center to host Zoho Apps *inside* China, so the speed issue is gone.

  12. Zach Weisman

    Michael,

    I’ve wondered this for a long time….

    What would you say the current value of ZOHO is? Are all of their financials private?

    Zach

  13. Florian

    “The Office piracy rate in China is 90+% according to Microsoft, and that market will be even more willing to use online versions of Word, Excel, Powerpoint, etc.”

    IMO, the fact that piracy is so high in China means that the cost of the product doesn’t matter. So free (or very cheap) services like Zoho lose one of their main advantages versus Microsoft.

  14. Joe Thong

    “The Office piracy rate in China is 90+% according to Microsoft, and that market will be even more willing to use online versions of Word, Excel, Powerpoint, etc.”

    This really baffles me… maybe you could shed some light on how you arrive on this conclusion.

    Why would I want to pay 14USD per month for a subpar editing experience (compared to Office) when I can get Office for “Free” which doesn’t even need me to subscribe to an ISP?

  15. Joe Thong

    Sorry. my bad, I just realized its the CRM app that’s only charging 14usd per month. Anyways, the piracy issue will still be giving Zoho/Baihui a harder time in China than in elsewhere where piracy issue is not such rampant.

  16. elvirs

    i did not know so many biased people read techcrunch.
    why do you bullshit anything you hear about china?
    -zoho is very smart company and is way different than zillion of web2.0 apps that have no revenue potential.
    -zoho has been strongly growing, releasing valuable products every few months. zoho show, zoho write are real products that have thousands of code lines behind them, zoho is not delicious.
    -it was smart of zoho to enter chinese market with baihui, because now they will have localized products blended with local well known internet brand and thats very different from what Google was trying to do.
    -todays piracy will not stay forever in china and i bet in few years chinese government will take an action against piracy to protect its local software companies, which will become local microsoft by then, at this rate of development in the economy.

  17. james

    Surely that market would be less willing to use Zoho, as they are more inclined to pirate software. Or am I missing something?

  18. blue

    很多好的东西一进入国内就容易不可避免地走样和庸俗化,Google中国开发的一些东西实在让人作呕,自己的优势未发挥,反而一再拼那些根本拼不过百度的地方,本地化成这样,唉!!
    早点像凤凰卫视那样维持自己特色,不轻易为了市场牺牲自己品牌,委屈求全,最后阉割自己到不成样子,也不会像今天这般尴尬。

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