While other major telecom equipment vendors are battling sales stagnation, Huawei Technologies Co. Ltd. appears to be bucking the trend, claiming to have registered a 45 percent increase in the value of contracts signed in 2007. (See Huawei Sets Bumper Sales Target.)
And according to reports, Huawei believes it can grow by a further 37 percent in 2008.
But the company also has many admirers, who say it has tremendous technical capabilities and is very fast to meet demands. As a result, Huawei, which now employs nearly 69,000 people (as of December 2007), 48 percent of whom are in R&D, has an impressive list of customers and says it now supplies technology to 35 of the world's top 50 operators.
So where do Huawei's strengths, and weaknesses, lie? Light Reading asked a selection of analysts at Heavy Reading to assess the vendor in their areas of expertise.
Next-generation fixed access and IMS Heavy Reading chief analyst Graham Finnie, who recently completed a major fiber-to-the-home (FTTH) report and who has spent a lot of time focused on IP Multimedia Subsystem (IMS) developments, says Huawei knows how to appeal to carriers' requirements for a full set of standards-based technologies. (See Report: EMEA Set for FTTH Surge.)
"Huawei ticks all the right boxes on standardized products, such as GPON (Gigabit PON) and Call Session Control Function (CSCF) [in an IMS], and then goes for the best price/performance ratio," says Finnie. (See Huawei Unveils T/bit GPON Gear.)
Where the Chinese firm isn't so good, reckons the analyst, is in services and support.
"I would say they don’t yet have a proven reputation as a systems integrator and provider of in-depth professional services and support, including a proven ability to partner, in established countries, though that is changing." Finnie adds that Huawei also has a reputation for sometimes promising what it can't deliver, "though even if that's true it would hardly be the only culprit in that respect."
Finnie also notes that rivals and industry watchers possibly don't have a firm grip on Huawei's global strategy. "One thing that isn’t always understood is that Huawei isn’t showing much interest in the U.S. and is focusing the biggest part of its marketing outside the conventional 'West' -- that is, North America, Western Europe, Japan, and so on. Instead, it is winning business everywhere else: in Asia, the Middle East, Eastern Europe, Africa, South America, and, of course, China."
The message there, notes Finnie, is that "vendors no longer need to be big players in the U.S. and the big European Tier 1s to be among the dominant players overall. The biggest growth opportunity is elsewhere."
Hi, I'm also working for Huawei MENA office in Cairo, Egypt. I want to share contacts with you. My ID # is 00712945. You can reach me through the address book.
>>By the way, you must realise that the vast majority of all telecoms equipment is built in Asia, regardless of the vendor's label on the box.
Not just telecom equipment but most computer equipments are either manufactured and/or partially developed in India/Cina etc. Most companies have growing offshore entities in Asia (may be not Ericsson) and have realized the potential and the business advantages of doing it. In any case, Asia/Pacific is th growth sector. Even HP announced that 70% of their sales is outside of US. Protectionist attitudes won't work in this global market.
Yes, I work for Huawei in Europe. Yes, it's often a challenging place to work due to cultural clashes but have you ever worked for a French or Swedish company? I have and no-one's perfect.
Look, I think you guys should give up on the xenophobia and protectionism stance. Why bash Huawei because of Chinese government policies? Do we bash Cisco because of George Bush? Why bash Huawei because of suspected military connections? Do you honestly think Motorola doesn't trade with the Pentagon?
Here's what I've learned over several years working here. Like a great many young Asian technology firms, they do indeed follow others' successes and copy good ideas. But hey, did all car companies invent the car - no of course not - so do you moan that only one should exist? And yes, they do internal R&D and yes they will get better and more innovative over time.
All this stuff about Chinese government ownership of Huawei doesn't sound right. What I do hear is that they get financial support for international expansion and growth. China would like to have some home grown international technology champions and supports that. Is this so unusual? Western countries subsidise R&D and exports too.
And on the topic of ownership, it is my understanding that many employees (no, not all) are indeed shareholders. The company isn't listed on the stock exchange - yet. Perhaps one day it will be floated - something the employees with shares look forward to. But a non-quoted company doesn't need to publish all of its financial details, the same as in Western countries. So I think some people are assuming the worst and enjoy conspiracy theories. I guess they watch too much junk TV.
On the topic of China being some kind of bargain basement factory, I'd like to add my comment. From what I hear, most factories in China are in fact owned by Western companies - think about that. By the way, you must realise that the vast majority of all telecoms equipment is built in Asia, regardless of the vendor's label on the box.
When I joined Huawei, I asked about Ericsson. I was informed that Ericsson is the largest supplier of telecoms equipment in China and is very highly respected by Huawei employees, rightly so.
Look, this is not a perfect company and there's lots of room to improve. I don't condone or undersatnd all of its internal or external practices. However, I do see genuine hard work, loyalty, respect and admiration for their competitors. It is a young, dynamic company that has successes and failures, makes mistakes and makes adjustments. Having worked for other vendors I can state that the place is highly dynamic - sometimes a bit of a roller-coaster at times - but you get opportunities that you'd never get anywhere else. On balance, I'm glad I came to work here. And no, I don't work in HR.
On the subject of defending a company, let's face it, the only globally recognizable Chinese brands are: Lenovo, Haier, Huawei, ZTE, Tsingtao Beer, etc.
Lenovo = IBM PC division Tsingtao = German setup in the 1900s That leaves Haier, Huawei, and ZTE. Since Huawei seems to be the most successful, it is the target of attention. If Huawei made candy, there would be detractors. I see it as the same old FUD an incumbent plays to stay on top of new competition.
Fred. Jackson Turner coined the phrase Manifest Destiny to describe the US in the 1800s. Part of the American identity comes from the fact that we can move away from "whatever" if we are willing to endure challenges and be rewarded by our hard work. A byproduct of Manifest Destiny is the US policy against Native Americans. Although it is an ugly reality, Native Americans have not been repaid for being conquered. This is the harsh reality of one people rapidly growing at the expense of another who happens to occupy the same space and time.
Tibet is no different. The Han Chinese is growing rapidly. If there are opportunities to prosper in Tibet, people will go there, which could displace the local Tibetans.
If you have a solution that solves the Native Americans and Tibetan problem, the Nobel Peace Committee would love to hear from you.
Not quite! Most "non-china based companies" are moving to China or even "lower-cost" manufacturing locations , but they ARE not China Based! Their significant portion of costs is much higher than HW's. Since there is little margin left (squeezed by carriers), it makes major difference that may make and break a few companies.
The Olympic torch was created for the 1936 Olympic Games. This is objective fact. (And, by the way, I think the Olympics are corrupt and venal to their core, and to that extent they're a perfect fit for the Communist Chinese regime.)
China continues to occupy Tibet and to suppress dissent and Tibetan culture through the barrel of a gun. This is also an objective fact.
"As far as I know" doesn't cut it. I still think it's funny how you and others can defend a stupid corporation. Talk about brand identification! Talk about desperately needing a life.
As far as I know, a lot of india employees in Huawei have huawei's shares. One of my friends is one of them. Talking about Lhasa, there is a website which can tell you more facts than I do. http://www.anti-cnn.com/ All these facts tell you the so-called "transparency" you are trying to propagandize. Comparing some country to Nazi Germany is a shame of your own intellgence. The Olympic torch belongs to IOC. no other one can create the Olympic torch. Almost all the analysts know blocking the 3com deal is to kill 3com gradually. This is my last comment about this issue.
I love the folks on this board who reflexively step up to defend the flagship networking company of China Inc. I mean, "Telecomidol," could you possibly be more transparently obvious than you are? Stop spamming this board and go yak somewhere where free speech won't offend you.
Like Lhasa, for example. Oh, wait a minute...
Hey Stefan, why are you so dead set on defending this company? Others have stepped up with actual evidence, and all you can do is whine that there's "no tangible evidence." You happen to work for HW by any chance? There's a term that the Soviets used to use to describe people from the West who supported them in the face of all the evidence of tyranny and butchery: "useful idiots."
China is a single-party dictatorship that does not accept the rule of law and that ruthlessly crushes dissent. Stefan, my guess is you'll be right in front cheering the Olymic torch as it goes by.
Just remember that the Olympic torch was created by Nazi Germany for the 1936 Games. The symbolism hasn't changed much since then, it appears.
There's a reason Huawei is "privately held." It doesn't have to disclose anything. But there is plenty of information out there about them. Worse luck for them and their misguided defenders. Congress did the right thing in squelching the 3Com deal.
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