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Huawei Still Expects Great Things in the Enterprise Space

by User Not Found | May 20, 2014

At Huawei Analyst conference in Shenzhen with an audience of more than 400 analysts and media in attendance, Mr. William Xu, Chief Strategy Officer hit on the overarching theme of the event - A Better Connected World. Connectivity should be added to the Maslow’s hierarchy of needs is indeed a bold statement from Mr. Xu who contended that connectivity is the new normal.

Mr. Xu evangelized the ability of ubiquitous connectivity to be a new factor of production and competitive advantage. From connected wearable safety jackets used in Chilean mining operations, to wirelessly enabled maternal healthcare in Africa, to boosting university enrollment in sub-sharan Africa and delivering education at half the price, to Starbucks generating $1B in revenue from mobile payments, the case was passionately made for connectivity as a key driver of societal change for the better.

The common ingredient in all these examples is Huawei’s Focus strategy to serve the unquenchable thirst for a bigger, fatter, faster pipe in the worldwide market. However, the more interesting detail was Huawei’s desire the “prime enabler of digital logistics.” With networks, infrastructure and modules in every classroom, movie theater, car, home, smart machine and devices, Huawei believes the explosion of demand for data will not only continue but accelerate. An equally important take away was that Huawei categorically rejects targeting or focusing on information and content while repeating its mantra of being the operator’s best friend.

While Huawei makes most of its revenue and profits from the carrier infrastructure business, what stood out was its requirement to reach USD $10B in the enterprise segment business before it considers itself a success. Noting many media have already claimed Huawei has succeeded in the enterprise segment, Huawei went to great lengths to note that it’s just getting started in winning the war for enterprise connectivity.

Although the enterprise segment is a fledgling business at Huawei, it already represents more than 6% of its revenue and posted an impressive 32% growth in 2013. Huawei continues to be in a major investment mode for the enterprise focused on product driven improvements and problem solving. Success to date has been largely, but not exclusively in China and Asia while expanded product development in data center solutions (more than 330 data centers worldwide)  and a strong focus on cloud distributed data center solutions.

 

Huawei clearly see enterprise as a priority opportunity alongside its core business and the burgeoning LTE opportunity while growth in global service solutions is also expected to be very strong in 2014.

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