& cplSiteName &

Huawei Buys OSS Vendor

Ray Le Maistre
2/12/2014
50%
50%

Huawei is about to become a more aggressive player in the global OSS market. It has acquired a telecom network management vendor as part of its plans to become a more significant direct Service Provider Information Technology (SPIT) supplier.

Huawei Technologies Co. Ltd. has acquired Fastwire Pte. (a Sydney company that had been owned by Macquarie Bank) and the company's executive team. The price was not disclosed. Fastwire has developed network inventory, fault management, and performance management systems that have been deployed by a range of telcos and other large enterprises, including BT Group plc (NYSE: BT; London: BTA), China Unicom Ltd. (NYSE: CHU), Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY), Telstra Corp. Ltd. (ASX: TLS; NZK: TLS), Time dotCom Bhd. , and Vodafone Group plc (NYSE: VOD).

The catalyst for the acquisition is twofold. Huawei wants to sell more OSS direct to network operators, and it needs more commercial OSS capabilities to support its growing global services division, which generated more than $8 billion of revenue in 2013 and has been growing at more than 23% per year in the past few years.

Dr. Leroy Blimegger, senior vice president of global technical services at Huawei, told analysts and reporters Wednesday at a briefing in London that Huawei has been supplying its OSS systems to telcos via its professional services group, which has installed and run the management software as part of services deals. Huawei intends to start selling OSS systems directly to network operators as commercial products, and Fastwire's portfolio will play a role in that push.

The deal, set to be announced at the Mobile World Congress in Barcelona, would also strengthen Huawei's overall proposition in the managed services market, where vendors such as Ericsson AB (Nasdaq: ERIC), Nokia Networks , and Huawei have been landing more SPIT-related systems integration and IT transformation deals that require multi-vendor support.

Ericsson moved significantly into the OSS market two years ago with the acquisition of Telcordia two years ago and followed that up by purchasing ConceptWave. (See Huawei & Yale Start a Cloud and Why Ericsson Wants Telcordia.)

— Ray Le Maistre, Editor-in-Chief, Light Reading

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Roland Leners
50%
50%
Roland Leners,
User Rank: Light Beer
2/13/2014 | 3:15:32 PM
Re: More aggressive - wow!
Fastwire was very exposed to APAC business and I understand that competition from Chinese based software companies (not only companies of the size of a Huawei) is becoming increasingly intense. Hence there might also a lot of seller rationale to this deal.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
2/13/2014 | 12:02:37 PM
Re: More aggressive - wow!
That surprised me too, given that Huawei has been talking up its OSS expertise for a while now. 
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
2/13/2014 | 3:26:25 AM
Re: More aggressive - wow!
I must say I didn't know it hadn't been selling its OSS on a regular commercial basis --  and I suspect Huawei has looked at what Ericsson has been doing in tying up its OSS capabilities with its professional services to make a strong combo and realized that's a good idea...

We have been saying for years that service provider IT (SPIT) is critical, right? :-)  
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
2/12/2014 | 7:11:53 PM
More aggressive - wow!
It's hard to imagine how Huawei could get more aggressive. 
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 30, 2017, The Westin Times Square
December 5-7, 2017, The Intercontinental Prague
March 20-22, 2018, Denver Marriott Tech Center
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
When Will 6G Arrive? Hopefully Never, Says BT's McRae
Iain Morris, News Editor, 11/21/2017
Let's Talk About 5G Efficiency, Not Wacky Services
Iain Morris, News Editor, 11/21/2017
Top 5 Tech Turkeys 2017
Dan Jones, Mobile Editor, 11/22/2017
AT&T's Lurie Leaps to Synchronoss as New CEO
Dan Jones, Mobile Editor, 11/17/2017
Wireless Could Arrive Soon in NYC Subway Tunnels
Dan Jones, Mobile Editor, 11/20/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives