Light Reading
The Chinese company revamps its approach to the network management market with an acquisition and a shift in its go-to-market strategy.

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
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. 
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
The Rise of Virtual CPE

1|27|15   |   01:38   |   (1) comment


As NFV strategies evolve from tests and trials to production telco networks, expect to hear a lot about virtual CPE (customer premises equipment) rollouts during 2015.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Heavy Reading's Graham Finnie about the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control – and sign up for
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
LRTV Interviews
Bob Wilson, Arsenal Legend: The Light Reading Interview

1|16|15   |   35:36   |   (3) comments


Arsenal goalkeeping legend Bob Wilson was Light Reading's guest interviewee at the 2020 Vision Executive Summit in December. See what the former soccer star and sports broadcaster had to say when he took to the stage in Iceland.
LRTV Custom TV
What MEF Third Network Initiative Means for SDN & NFV

1|14|15   |   6:13   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss discusses the importance of the MEF Third Network initiative and why it's good news for SDN/NFV industry initiatives.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Google Continues Gigabit Expansion
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/27/2015
BlackBerry Wants Net Neutrality Protection – That's Just Sad
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/22/2015
Verizon Ready for Google MVNO Challenge
Dan Jones, Mobile Editor, 1/22/2015
FiOS Picks Up Pace Again
Alan Breznick, Cable/Video Practice Leader, 1/22/2015
Indiana Carrier Takes Fiber to the Farm
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive