million people besieged enterprise cloud Huawei challenges Cisco, HP

Bantian in Shenzhen, Huawei headquarters, a huge business products showroom has just finished decoration, is eagerly put into use.

The opening of the showroom is enough to alert Cisco and Hewlett-Packard that the smooth, "smart" video conferencing system will compete directly with the expensive Cisco "NET", while cloud computing solutions could turn into HP's rivals.

The market, which the big it giants consider to be more value-added, is becoming a new competitive hot spot, after Hewlett-Packard's announcement that it is focused on business markets, Cisco layoffs and a refocusing of the corporate web business.

Huawei business chief Xu said in an interview recently that the company's business sales will reach 4 billion U.S. dollars this year--a nearly one-fold increase from last year, the firm hopes that the 2015 data will be as high as 15 billion-20 billion U.S. dollars, accounting for 20% of Huawei's sales, as Huawei's most important growth point.

The most important growth point

Cloud computing has greatly expanded the scope of business applications, and only large enterprises can play a turn

Huawei's business, through a lot of bumpy.

Previously, Huawei mainly through joint ventures in the form of business operations, was called "corporate network."

November 2003, Huawei and 3Com joint venture established Huawei 3Com Company, Sales Enterprise network products. At the end of 2006, the 3Com also purchased its wholly-owned, and changed its name to Hangzhou Hua San Communication Technology Co., Ltd. (H3C), after which 3Com was purchased by HP.

By the beginning of this year, Huawei had reclassified the company's business into four major sectors and set up its business division, chaired by Xu.

Xu points out that the global business market is trillions of dollars, which is a very promising market.

Huawei recently released its first half of the 2011 revenue Show, the first half of this year, the company achieved 98.3 billion yuan in revenue, a 11% increase from the same period last year, Huawei expects 2011 full-year revenue to reach 199 billion yuan.

In Huawei's business sector, the business is the fastest growing piece of business, the first half of this year to achieve a total sales revenue of 1.5 billion U.S. dollars. Huawei Business Marketing chief He Dabing is confident of a 4 billion-dollar sales target for the year – extrapolating Huawei's business to nearly 100% per cent from last year.

One important backdrop for Huawei's aggressive foray into the business market is the rise of cloud computing in the world-cloud computing has greatly expanded the scope of business applications, and only big companies have the ability to play.

In Beijing, Shanghai, Guangzhou, Nanjing, Wuxi and other places, the local government set off a new round of cloud computing development boom, all over the launch of cloud computing demonstration projects, this gives Huawei such manufacturers have brought great opportunities.

In the first half of the company's 1.5 billion U.S. dollars in sales, the largest customer source is the government, then the financial, energy, medical and other vertical industries, mainly from communications equipment, mainly including routers and switches. At present, the more mature project has cooperated with Shanghai government Zhabei Hospital "health Cloud" project, provides the electronic office based on cloud computing.

He Dabing pointed out that the current domestic cloud computing bubble is indeed emerging, but any major industrial transformation in the beginning will be a bubble, after the bubble brought about by the great progress of the industry.

Challenge Cisco HP

Cisco CEO Chambers calls Huawei "toughest competitor"

Huawei's high-profile foray into the business market has inevitably aroused the vigilance of other giants. Currently in the corporate router market, Cisco, Hewlett-Packard, Juniper sit in the top three seats, Huawei's market share is still relatively small.

Cisco still occupies an absolute leading position, according to the Dell ' Oro group, Cisco's market share in the global corporate router market remained as high as 81.8% in the fourth quarter of 2010, compared with Huawei's 2.5%.

Huawei's massive foray into the business market will inevitably start a tough battle with Cisco, one of Cisco's most important businesses and the foundation of Cisco's original fortune, which now contributes 46% of Cisco's total revenue.

At a recent Cisco analyst meeting, Cisco CEO Chambers called Huawei "the toughest adversary" and threatened to put more challenges on Huawei.

In Xu's view, Cisco and Hewlett-Packard are Huawei's main competitors in business, and "Of course IBM is a higher level adversary".

The latest strategy of Huawei's other big competitor, Hewlett-Packard, is worth pondering.

HP has just announced that it is considering stripping PCs and other consumer electronics businesses to push HP into higher-value, higher-profit growth areas. The so-called "higher value, higher profit" is "cloud computing, solutions and software, with particular focus on the corporate market, the business market and the government market." "HP's subsidiaries are operating at a profit margin of 13.5%, with enterprise Servers, storage and networks operating at a profit margin of 13%, much higher than the PC and printer business units."

It is worth mentioning that HP in China's corporate network business and Huawei has a lot of origins.

November 2003, when the Sheng of Huawei Executive vice president led more than 1000 people, from Shenzhen and Beijing moved to Hangzhou, Huawei Data Communications division into a joint venture company Huawei 3Com Initial team. The move is aimed at easing intellectual property lawsuits between Huawei and Cisco.

Since then, the 3COM has fully acquired the company, and renamed Hua San (H3C) company, the company in the corporate network market has caused Cisco a lot of trouble, and contributed to 3Com in the global majority of revenue, after the HP bought 3com-- This was interpreted by some in the industry as HP hopes to aggressively tap into China's corporate network market.

Now that Huawei has made a high-profile foray into its business, Hewlett-Packard will compete with its former owner, Huawei.

Invest million people to fight research and development

Huawei currently has 6000 people working on cloud computing, up to 10,000 next year.

Shanghai, a senior cloud computing veteran to reporters, the world is still very few hardware manufacturers from building data centers and then sales of cloud computing services, including Cisco, Hewlett-Packard, Huawei and other enterprises in the business of the profit model depends mainly on the sale of hardware, while tying the software and solutions.

At present, the biggest problem of business market is how to educate users effectively. For example, Huawei at its Shanghai Institute to achieve the country's largest "desktop cloud" office, 8,000 staff do not need a PC host and only use the display screen to connect the cloud Computing Center to achieve office, in the promotion process, need to do a lot of work to convince other companies to accept this trendy system.

For Huawei, who has just entered the market, the immediate challenge is to effectively carve out the real demand for the market – a completely different pattern from the way Huawei followed the carrier.

Xu said Huawei's business must go with its partners to open up the market, because in this market sometimes its own customers do not know where, Huawei needs to energy, medical and other industries familiar with partners to open up their own business.

He Dabing said Huawei hoped that the model is to build an open platform to attract partners in various industries to come together to open up the market, rather than alone, which means that Huawei will no longer rely on the operator era of the proven direct sales model, but to vigorously expand the distribution mode relying on channel distributors.

He Dabing pointed out that the biggest advantage of Huawei's business is Huawei's strong research and development capabilities, Huawei is currently in the cloud of research and development of the staff of 6000 people, next year will reach 10,000 people.

(Responsible editor: admin)