Xu: Huawei's target of hundreds of billions of dollars of companies must enter the business

in Shanghai

Huawei is fully accelerating its business layout after Ericsson has become the world's largest telecoms equipment maker. Cisco and Huawei, the two "fate" rivals, after 12 years, has once again in the corporate network market head-on encounter.

September 16, Huawei held in Shanghai to "streamline it, agile business Path" as the theme of the cloud Computing conference. Huawei sees cloud services as the biggest opportunity and technological advantage for "overtaking the curve" in business. Huawei Company executive Director, Strategic marketing President Xu, it product line President Zheng received an interview with the author, on Huawei Enterprise business and cloud service layout, as well as the competition with Cisco interpretation, the following is the main information points:

Why did Huawei enter the business?

Huawei decided in 2008 to enter the business, Ren 2010 asked: "On the cloud platform in less than a long time to overtake Cisco, in the cloud business we have to catch up with Google." Let all the people of the world enjoy the application and service of information like electricity. Then, Huawei focused on the business focus of the multi-directional layout.

So why did Huawei decide to enter the enterprise market fully as an international telecoms equipment company with a traditional service operator?

Xu said that the telecom operators business is only one of many industries, Huawei to further development, to become a billion dollar company, must enter more industry areas. At the same time, the telecom operators themselves are also in the transformation, it and IP, Huawei to first step into IT companies to better serve the operators business, so the transformation is also a natural choice.

Partners should work with Huawei

Huawei has spent 27 years overtaking Ericsson as the world's largest telecoms equipment company. What impact will Huawei have on traditional business markets as Huawei accelerates its transition to business? How much impact will the Cisco industry's top-ranking companies make?

Xu said, Huawei Business development space needs from the following dimensions:

1, from the whole enterprise business market, the overall still in a rapid growth point, there is a large incremental market;

2, in addition to traditional services such as switches, Huawei in recent years launched an Agile network, agile exchange and other technologies and services, at a higher level of product competition;

3, Huawei Enterprise business does not depend on the price war, therefore does not occupy the small enterprise survival space as the goal;

4, for the author of the competition with Cisco, Xu said: "Industry partners, is to consider the time to cooperate with Huawei."

It is easy to see from Xu's speech that Huawei has targeted Cisco, the world's largest competitor, in the development of its business and it businesses.

Huawei has grown rapidly in this area in 1999, when it launched data communications products, from the mainstream of access servers, routers and Ethernet. In 2002, Huawei's share in China's router and switch market has been the biggest competitor of Cisco.

In 2012, Huawei's carrier business was denied access to the U.S. market in the name of "security". And as Huawei's business expands globally, how does it view the U.S. market? Xu said: "Relative to China's business, Huawei business overseas market expansion to be a bit late." Because Huawei's overseas business is mainly concentrated in the field of operators, in recent years the terminal business has also developed rapidly, and the business overseas market has only just begun. "In the U.S. market, Huawei's business is booming, Huawei is doing business, and U.S. partners are also valuing the value of cooperation with Huawei."

Zheng, president of IT product line, believes that the business objective of the IT product line is to operate globally. Huawei fully recognizes the value of patents and has also invested and developed in patents. Huawei will be in accordance with international rules and forms, put all things on the table fair and impartial competition, the pay will pay, the charge will also collect money, this is Huawei to internationalization has been adhering to the most basic principles.

Huawei Business 2013-year revenue of 2.5 billion U.S. dollars, 2014-year target revenue of 3.5 billion U.S. dollars, and its main competitor Cisco 2013 revenue of 47.1 billion U.S. dollars, profit of 7.9 billion U.S. dollars, the volume gap remains huge.

Zheng to this response said: "Huawei was the beginning of the carrier business, and ranked first enterprises accounted for less than 1%, but 10 years later, Huawei many" look at the stars "of the peers have ceased to exist. Therefore, research and development and technology to determine the future, Huawei in the beginning of every industry, there is no great advantage, but ultimately will become the industry leader.

Huawei begins to focus on cloud service brands

Compared with the previous two years, one of the highlights of the 2014 Huawei Cloud Computing Conference was the first release of the Global Connectivity Index (GCI), which was recognized by the industry as one of the important signs that Huawei's business began to establish an international brand.

In the index data published, Huawei selected 25 typical countries in the world, 10 industries, including Germany, Britain, the United States and other developed countries, as well as intelligence, Brazil, Kenya and other emerging countries, these countries occupy 78% of the world's GDP, 68% of the population, industry related to financial, 10 major categories of manufacturing, education, transportation and logistics. Of the 25 countries selected by Huawei, the China Link Index ranked 14th.

Xu said that one of the reasons for Huawei's global Connectivity index is that it hopes to become one of the indicators and references for international expansion of ICT industry. Huawei will publish its global Connectivity index every year, and its coverage and content will continue to be rich. As in this year's reference, it added to the previous research agencies concerned about the number of mobile application downloads, the number of IP per capita, the per capita international export bandwidth and so on.

Xu stressed that "brand, technology, partners will become Huawei business, including cloud services, the important development indicators." From 2008 Huawei decided to enter the enterprise business to the present, the business development and change also have a cognitive process. Huawei has found that the dimensions of the business customer base have changed, and the product dimension is changing accordingly. Huawei Business 2013 Sales (non-contract income) of 2.5 billion U.S. dollars, 2014 is expected to reach 3.5 billion U.S. dollars, the target of 10 billion U.S. dollars in 2018, the annual composite growth rate of more than 40%.

In terms of profitability, Xu that Huawei is not looking at the financial goals of each business development. Enterprise business really exerting force also only four years time, now also belongs to the investment period, compared to 2013 this year profit rate has been significantly improved, IP products have begun to profit. Huawei enters any one field, does not position itself to follow, but through innovation, through innovation to achieve differentiation, gradually lead, to achieve industry leadership position.