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 Interviews
The New Wave of IP + Optical Integration

11|21|14   |   04:29   |   (7) comments


At the Alcatel-Lucent Technology Symposium, Heavy Reading senior analyst Sterling Perrin talks about how SDN has reshaped the discussion around packet and optical integration.
LRTV Huawei Video Resource Center
Huawei Highlights at BBWF 2014

11|20|14   |   3:40   |   (1) comment


Broadband World Forum is one of the world's largest telecoms, media and technology events with over 7,800 senior executives from across the globe converging on Amsterdam every year to identify the Next Big Thing. BBWF is an exciting place to meet the entire industry under one roof and identify the latest in network innovation, service optimization and customer ...
LRTV Huawei Video Resource Center
How Will BCMS Stimulate Margin for Broadband Operators?

11|19|14   |   6:52   |   (0) comments


In BBWF 2014, Liu Shuqing emphasizes the value of FMC 2.0 based full service experience by throwing light on the BCMS solution. The underlying principle of this innovative technique is to create network robustness and driving network from connection oriented to ACE – BAND oriented infrastructure, in which applications, cloud, and user experiences will be an asset ...
LRTV Huawei Video Resource Center
SingleFAN3.0: Better Connected Experience

11|19|14   |   3:06   |   (1) comment


At the BBWF 2014, David Hu, the VP of Huawei Access Network Product Line, talked about the future of access networks – SingleFAN3.0: faster broadband, wider coverage, and smarter connection.
LRTV Interviews
Basil Alwan Interview: The Road to Cloud

11|19|14   |   09:09   |   (0) comments


Alcatel-Lucent's head of IP and Transport talks about the migration towards a web-like networking environment, the impact of the cloud, SDN and NFV, and the yet-to-be-announced FP4 chip.
LRTV Documentaries
FairPoint Makes a Fair Point About Analytics

11|19|14   |   1:56   |   (1) comment


The US-based communication service provider gets to grips with advanced analytics, tackling data and breaking down the silos within its own business.
LRTV Documentaries
Analytics Lets C Spire Get to Know Subs

11|19|14   |   3:01   |   (2) comments


It's all about the data for US operator C Spire as it uses analytics to personalize its customer service down to individual subscribers.
LRTV Interviews
Nuage Branches Out With SDN: CEO Interview

11|17|14   |   9:32   |   (0) comments


Sunil Khandekar, CEO of Alcatel-Lucent's SDN-focused unit Nuage Networks, talks about the opportunities and challenges of breaking out of the data center into wide-area networks.
Light Reedy
Telecom Analytics Grows Up

11|14|14   |   1:15   |   (4) comments


The big data analytics debate has moved on from a year ago, with some experts suggesting it's no longer a technology challenge.
LRTV Huawei Video Resource Center
Huawei Compass

11|14|14   |   3:17   |   (1) comment


At OpenStack Summit 2014, Shuo Yang, Huawei Principal Cloud Infrastructure Architect introduced Huawei Compass, the software tool for solving customers' problems on the journey of OpenStack Cloud.
LRTV Huawei Video Resource Center
Huawei's Cloud Strategy in European Region

11|14|14   |   2:56   |   (1) comment


At OpenStack Summit 2014, Dr. Gotz, CTO of Huawei IT in European Region introduced Huawei's cloud strategy in European region.
LRTV Huawei Video Resource Center
Huawei's Contribution on OpenStack

11|14|14   |   5:58   |   (0) comments


At OpenStack Summit 2014, Dennis Gu, Huawei Chief Architect of Cloud Computing introduced the relationship between OpenStack and cloud computing, and Huawei's contribution on OpenStack.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 12, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
Bell Labs Chief Slams 'Toy' Networks
Robert Clark, 11/19/2014
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Google, AT&T, BT Unite on Network Data Models
Carol Wilson, Editor-at-large, 11/20/2014
Like Us on Facebook
Twitter Feed