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. 
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
LRTV Huawei Video Resource Center
The Inaugural Optical Innovation Forum in Nice

9|2|14   |     |   (0) comments


More than 170 attendees from network operators, service providers, analyst firms, and component companies from around the world convened in Nice in June for the inaugural Optical Innovation Forum, co-produced by Huawei and Light Reading.
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Nokia's Maps Land on Samsung Devices
Sarah Reedy, Senior Editor, 8/29/2014
Now Google Planning Drones-to-Go
Dan Jones, Mobile Editor, 8/29/2014
Music to My Mobile
Sarah Reedy, Senior Editor, 8/28/2014
Like Us on Facebook
Twitter Feed