Light Reading

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. 
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
To keep up with consumers' increasing digital lifestyles, an IT system and operating model overhaul is required using a modern BSS, IES and analytics.
Hot Topics
Eurobites: Nokia Seals HERE Sale
Paul Rainford, Assistant Editor, Europe, 8/3/2015
Verizon Small Cells Ready to Rock in Chicago
Sarah Thomas, Editorial Operations Director, 7/31/2015
Cable Feuds With Senate Dems Over STBs
Alan Breznick, Cable/Video Practice Leader, 7/31/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
I was pleasantly surprised when Ericsson recently agreed to let me interview its CEO, Hans Vestberg. Traditionally, mega-companies like Ericsson (or Cisco) have kept ...
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Cats with Phones
Comes With Free Phone Stand Click Here
Who says cats don't have any skills?