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Optical/IP

Huawei Teams With Microsoft

Stepping up the pressure on Cisco Systems Inc. (Nasdaq: CSCO) in the VOIP equipment market, China’s Huawei Technologies Co. Ltd. has announced a partnership with Microsoft Corp. (Nasdaq: MSFT), a move analysts say is bound to raise the hairs on Cisco's neck (see Huawei, Microsoft Partner ).

Cisco and Huawei have been at loggerheads since the incumbent provider slapped a lawsuit on Huawei, accusing the company of violating copyright laws and stealing intellectual property to use in its products and support materials (see Cisco/Huawei Brawl Begins).

Cisco recently halted the suit pending an independent review of Huawei products, after Huawei said it had changed its source code (see Huawei: Cisco Code Is Gone).

Now Huawei is back on the offensive, teaming up with Microsoft in China, where the two firms will sell an integrated package of next-generation network equipment from Huawei coupled with Microsoft’s Exchange Server 2003. Dubbed U-SYS WorkSpace, the offering is aimed at carriers looking to offer IP Centrex and other hosted IP services like Microsoft Exchange.

Analysts say it’s another shot over the bow from Huawei that Cisco doesn’t need. ”If they ever wanted to trump Cisco, getting into bed with Microsoft is one way to do it… It’s a very deliberate strategy to buy legitimacy into the Western market,” says Jon Arnold, program leader, VOIP equipment, Frost & Sullivan. In addition to the Microsoft deal, Huawei announced today that its commercial arrangement with 3Com Corp. (Nasdaq: COMS) is up and running (see 3Com Taps Huawei in Enterprise Battle).

According to the latest market stats, Huawei appears to be stealing some of Cisco’s thunder. Dittberner Associates Inc. reports that Huawei has captured 13 percent of the global market for next-generation voice products, with over 4 million ports shipped to date.

As of September, 2003, Huawei claims its U-SYS next-generation offering -- that includes a softswitch, media and signaling gateways, integrated access device (IAD), and service layer software -- has been commercially rolled out by over 20 carriers in more than ten countries including China, the U.K., and Brunei.

For Microsoft’s part, it gets a strong partner in China, a market analysts say is impossible to penetrate without local partners. “This is a successful story of giant-to-giant cooperation in the telecom industry,” said Guo Haiwei, VP of Huawei, in a prepared statement.

— Jo Maitland, Senior Editor, Boardwatch

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Indy_lite 12/4/2012 | 11:14:40 PM
re: Huawei Teams With Microsoft It seems Huawei is teaming up with everyone they can find. Why not with Juniper, Ciena, and Proket (instead they did with Avici)? Is it possible they will ever team up with Cisco ?
gzkom 12/4/2012 | 11:14:35 PM
re: Huawei Teams With Microsoft A dog never learns to speak human language.
whyiswhy 12/4/2012 | 11:14:35 PM
re: Huawei Teams With Microsoft When you lay down with a dirty dog, you are soon teaming with fleas. That's the meaning of teaming with Huawei.

JMHO

-Why
DocGonzo 12/4/2012 | 11:14:30 PM
re: Huawei Teams With Microsoft Perhaps it is the choice of Juniper, Ciena and Proket (sic) to not team with Huawei. Avici's teaming agreement was less important than 3Com's.

Your question concerning Cisco is dumb. All of these companies are direct competitors with Cisco on some level. Uh, that includes Huawei.

Doc
mdwdm 12/4/2012 | 11:14:29 PM
re: Huawei Teams With Microsoft That is quite obvious, esp. on lightreading.

-------------
A dog never learns to speak human language.
OpticOm 12/4/2012 | 11:14:27 PM
re: Huawei Teams With Microsoft Teaming with HuaWei is like sleeping with your worst enemy.
Many companies will regret playing with fire, when their IP will be stolen in China, and their products will be displaced from ALL markets, not only chinese markets.
RouterOttawa 12/4/2012 | 11:14:24 PM
re: Huawei Teams With Microsoft Teaming with HuaWei is like sleeping with your worst enemy. Many companies will regret playing with fire, when their IP will be stolen in China, and their products will be displaced from ALL markets, not only chinese markets.

This Microsoft - Huawei marriage seems like a match made in heaven then.
yikes_stripes 12/4/2012 | 11:14:24 PM
re: Huawei Teams With Microsoft All your IP are belong to us!
ilyaniv 12/4/2012 | 11:14:18 PM
re: Huawei Teams With Microsoft Can you explain why you wrote what you wrote?

Thx
telebud 12/4/2012 | 11:14:15 PM
re: Huawei Teams With Microsoft Bill Gates and China Perfect Together?
Bill Gates could use China as his new world order.

Oh,In China don't they EAT DOGS too?
http://www.freep.com/news/nw/z...
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