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Huawei Goes Hard Core

Light Reading
News Analysis
Light Reading
2/9/2005
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Resurrecting the term "terabit router," Chinese vendor Huawei Technologies Co. Ltd. is diving into the core-routing market.

But while Huawei is considered an able competitor in routers, analysts have their doubts that its core router will make much of a splash. Core routers are just too difficult a market, says analyst Samuel Wilson of JMP Securities.

"How much business did Procket do? And they had Tony Li," Wilson says (see Procket Reaches 'End of Life').

Yet another question about Huawei's move is what it will mean for Avici Systems Inc. (Nasdaq: AVCI; Frankfurt: BVC7), one of its partners. Huawei resells Avici's SSR core routers under the name NE5000.

Separately, Huawei is developing the Quidway NE5000E Terabit Core Router, which it has begun marketing in China, according to Avici officials. The system was announced last fall.

Most Huawei officials were unavailable for comment due to this week's New Year's holiday, but a spokesman -- reached on holiday in rural China -- confirmed that the NE5000E is a home-grown Huawei project.

The NE5000E has slots for 64 10-Gbit/s interfaces, with 40-Gbit/s interfaces to be offered "in the near future," giving each chassis a potential throughput of 2.56 Tbit/s.

Beyond that, up to 64 chassis can be connected together for a total throughput exceeding 160 Tbit/s with 40-Gbit/s interfaces, or 40 Tbit/s using today's 10-Gbit/s interfaces.

Cisco Systems Inc. (Nasdaq: CSCO) and Juniper Networks Inc. (Nasdaq: JNPR) announced their own multichassis core routers last year, and of course Avici has its own multichassis product (see Cisco Unveils the HFR and Juniper Unveils the TX). Here's a rundown of the competiton:

Table 1: Multichassis Router Derby

Company System Maximum Capacity
Cisco CRS-1 46 Tbit/s* in a 72-chassis configuration
Huawei NE5000E 41 Tbit/s in a 64-chassis configuration (OC192 interfaces only)
Juniper TX 1.28 Tbit/s by linking four T640s together
Avici TSR 5.6 Tbit/s achieved by adding switch cards in up to 14 chassis; larger configurations may be possible
Chiaro Enstara 3.125 Tbit/s multichassis configuration consisting of 315 slots of 10 Gbit/s
* That's 92 Tbit/s, adjusted to fit the counting schemes of the other vendors
Source: Company releases




History is not on Huawei's side here, as no terabit router startup besides Avici has picked up any success. The roster of the fallen includes such bubble-era names as Axiowave, Ironbridge, Pluris, and, most recently, Procket. From the startup side, Chiaro Networks Inc. is still giving it a shot, having recently inked a reseller deal with ECI Telecom Ltd. (Nasdaq/NM: ECIL) (see Chiaro Lands ECI Investment).

So does the NE5000E conflict with the Huawei-Avici alliance? Not necessarily, because analysts think Huawei will face the same problems that sank all those startups. Carriers take years to get comfortable with buying from a vendor -- and the core router, being a crucial decision, takes even longer than most sales.

"It'll be a long time before they have a credible router," says one analyst who asked to remain anonymous.

Likewise, Avici isn't concerned about the NE5000E. "It's interesting in China. It's not going to be that interesting outside China," says William Leighton, Avici's CEO. Still, it's yet to be seen what impact the NE5000E might have on Avici's relationship with Huawei, as Avici will be banking on its resellers to help increase its customer base.

— Craig Matsumoto, Senior Editor, Light Reading




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foton
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foton,
User Rank: Light Beer
12/5/2012 | 3:27:16 AM
re: Huawei Goes Hard Core

Wondering what Who-are-we are going to sell their router for? The clue is in the name:

Quidway 4000E

...they will give it a-WAY for 4000 QUID (or 4000 Euro)!

PS FYI a "Quid" is one British Pound, not the ball that Harry Potter plays with

PPS Guess who'se been reading too many Dan Brown novels recently - a conspirancy around every corner
Goeran
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Goeran,
User Rank: Light Beer
12/5/2012 | 3:27:15 AM
re: Huawei Goes Hard Core
Here's a good news digest on Chinese internet and networking companies:
http://china-netinvestor.blogs...

Interesting articles:
- Huawei profits jump on strong orders
- G-7 CEOs see rise of China, India predators: Huawei, ZTE
- New generation of Chinese telecom and networking companies challenge Cisco, Lucent, Nortel and Alcatel
- BBC News Report on Huawei: China IT giant eyes new horizons

Challenge is here I guess.
stillworking
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stillworking,
User Rank: Light Beer
12/5/2012 | 3:27:13 AM
re: Huawei Goes Hard Core
hmmm, let me think, 40G interfaces, I thought that was science fiction. BTW, what ever happened to those 40g startups, are any still around.
beowulf888
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beowulf888,
User Rank: Light Beer
12/5/2012 | 3:27:13 AM
re: Huawei Goes Hard Core
Goeran is correct. There is a challenge to Cisco and Juniper brewing. Avici's CEO is incorrect that it will only be of interest in China (and India, as well), because this is precisely the region where there will be the greatest Internet growth in the next decade.

In China, there will be tremendous arm-twisting by the government (MII, etc.) on Chinese CEOs to buy Chinese. As a quidway pro quo, I predict that Huawei will give it's Chinese customers tremendous discounts. Cisco and Juniper will be left at a serious disadvantage -- unless they can show that their products are by and far more superior technically.

As for India, corporations over there will probably be looking at the lowest cost -- which Huwei will be able to provide. Likewise, I'm sure there will also be indirect pressures from various ministries to please their new SuperPower neighbor.

Bottom line, Cisco and Juniper will have a rough time of it. And forget about anyone else playing in this sandboxes. Avici's CEO should definitely be worried.

--Beo
Goeran
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Goeran,
User Rank: Light Beer
12/5/2012 | 3:27:12 AM
re: Huawei Goes Hard Core
Quote:
"Avici isn't concerned about the NE5000E. "It's interesting in China. It's not going to be that interesting outside China," says William Leighton, Avici's CEO."

Sounds like wishful thinking to me. Huawei is not a little startup company. They have 24,000 employees - roughly 48% of its workforce - 10,000 people - are in research and development.

In 2004, exports made up nearly half of contracted sales or $2.28bn of a total of $5.58bn.
And still growing fast.
beowulf888
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beowulf888,
User Rank: Light Beer
12/5/2012 | 3:27:10 AM
re: Huawei Goes Hard Core
The CRS-1 has 40 Gig interfaces. They're not science fiction -- just very bleeding edge...

--Beo
Tiddly
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Tiddly,
User Rank: Light Beer
12/5/2012 | 3:27:02 AM
re: Huawei Goes Hard Core
The "predators" are here and its looks like they are not going to go away. Cisco and Juniper should be worried, but they should also be confident in their ability to retain and keep customers relatively happy.
Whilst Huawei are buying the market at a rapid rate, lets all wait and see how it's delivered and supported. Sure they will get some deals, but will the Chinese really be able to work and deliver all they promise?
I know every company has it's frustrations, but lets not forget this is a new market and they do have to go an extra mile - but can they sustain it?
This is their honeymoon period where they are courting everything and saying all the right things - but im not so sure it will always be roses once they start rolling out and you are tied to them, then i think we will really start to see the real Huawei.
sjenngs
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sjenngs,
User Rank: Light Beer
12/5/2012 | 3:27:00 AM
re: Huawei Goes Hard Core
Huawei started with relatively poor products but they have proven their products in many applications now. They are real competitor for all telecom equipment vendors now, don't ignore them.
light-headed
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light-headed,
User Rank: Light Beer
12/5/2012 | 3:27:00 AM
re: Huawei Goes Hard Core
This is a good point. Chinese customers are very forgiving if Huawei has a problem due to low expectations, relationships, Huawei position with govt, etc. Customers outside of China will NOT be so forgiving if they have problems/issues and do not resolve them in a timely manner or with good results. This is much more of an issue with complicated products like core routers than it is with cheap lan switches and access gear.

------------------------------------------------
The "predators" are here and its looks like they are not going to go away. Cisco and Juniper should be worried, but they should also be confident in their ability to retain and keep customers relatively happy.
Whilst Huawei are buying the market at a rapid rate, lets all wait and see how it's delivered and supported. Sure they will get some deals, but will the Chinese really be able to work and deliver all they promise?
I know every company has it's frustrations, but lets not forget this is a new market and they do have to go an extra mile - but can they sustain it?
This is their honeymoon period where they are courting everything and saying all the right things - but im not so sure it will always be roses once they start rolling out and you are tied to them, then i think we will really start to see the real Huawei.
plasma
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plasma,
User Rank: Light Beer
12/5/2012 | 3:26:59 AM
re: Huawei Goes Hard Core
I ignore them. Call me old school or paranoid, but I'm not sure I want devices built from a company (that's an extension of the PLA) in my network. Judging by their rep. who to say you want have more holes/backdoors than a block of swiss cheese?
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