2012 Huawei Global Analyst Summit: Consumer Device Strategy Will Indirectly Benefit Core Business

Huawei hosted about 160 industry and financial analysts at its ninth annual analyst summit in Shenzhen, China in April 2012. The main takeaway for its consumer devices business was that consumer devices complete the end-to-end pitch for Huawei. Huawei showcased its growing capabilities across the wireless industry value chain. Most notably, Huawei made a foray into the smart devices domain with its own brand of smartphones and tablets. In 2011, Huawei shipped 20 million smartphones and 60 million mobile broadband devices like dongles. The smartphone market is already overcrowded with heavyweights such as Apple, Samsung, Nokia, and Motorola; thus, it might seem that Huawei may not be able to make a very profitable business from selling these devices. However, we believe that this move will bring indirect benefits to Huawei’s core Carrier Network division in the following two ways:

  • It spurs the uptake of smart mobile devices. Among all companies, Huawei is best suited to leverage manufacturing capabilities in its homeland, China, to mass-produce smart devices. Moreover, as it can manufacture processors in-house through its HiSilicon subsidiary, it can control and reduce the overall price of these devices. As price is a major buying criterion for consumers in regions like China, India, and the Southeast Asian countries, Huawei will be able to expedite the uptake of devices in these countries. Subsequently, the demand for data will increase and telecom operators in these countries will need to upgrade or roll out new technologies and networks (HSPA+, TD-LTE, FDD-LTE, dual-mode networks, etc.). This is where Huawei will benefit, as it will be able to position itself as an end-to-end supplier for telecom operators including hardware, professional and managed services, security solutions, servers, and storage.
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2012 Huawei Global Analyst Summit: Carrier Networks' Business Is Shifting From Hardware To Software

Huawei hosted about 160 industry and financial analysts at its ninth annual analyst summit in Shenzhen, China in April 2012. The event showed us that Huawei’s carrier network activities are becoming increasingly software-focused. Huawei is building up its network software and professional services capabilities. This drive is reflected in its SoftCom solution, driven by the cloud computing delivery model in the network space. Huawei is well aware of the role software will play for future distributed and virtualized network infrastructure and network-centric solutions, where the data center is effectively becoming the phone switch for ICT solutions. In fact, Huawei goes as far as to say that hardware will be fairly commoditized and that differentiation will be based on software. Huawei is a member of more than 130 industry standard-defining bodies; as such, it influences the development of industry standards. Huawei maintains its own silicon chip fabrication capabilities (HiSilicon), which help deliver opex reductions and greater energy efficiency as part of its networking solutions for wired and wireless (WiFi, WiMAX, and LTE) environments. Huawei has been designing and assembling servers for a decade and offers blade and rack configurations designed to support cloud and virtualization environments. Huawei’s security solutions, greatly enhanced by Huawei buying the remaining 49% stake in its Huawei Symantec joint venture recently, include firewall, VPNs, intrusion detection, application gateways, and unified threat management. Huawei also works with other leading ICT vendors to deliver solutions according to customer requirements. Huawei’s GalaX Cloud operating system delivers large scale virtualization capability for compute and storage resources in a cloud deployment. Huawei assists carriers and enterprise customers with design implementation and operation of deployments through its SmartCare Services solution, which monitors and ensures the

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Telcos And SIs Are Best Suited To Capitalize On The Growing Indian Enterprise Mobility Market

I have recently published a report on enterprise mobility in India. Improving mobility infrastructure, including networks and devices, and business and workforce demand are fueling the growth of mobility within organizations. Mobility is being used not only to connect with customers, but also to connect with suppliers, partners, and employees. A few key takeaways from the report are that:

  • Interest in advanced mobile-enabled applications is increasing. There is a great impetus among enterprises in India to move beyond only mobile-enabling basic applications such as email, IM, contacts, and calendar. Twenty percent of enterprises plan to mobile-enable advanced applications like location-based services in the coming 12 to 24 months, while 37% of enterprises want to mobile-enable customer relationship management.
  • Mobility is among the top enterprise priorities for 2012 and investment is set to rise. For business decision-makers at enterprises and SMBs in India, provisioning mobility is one of the top three priorities in 2012. As a result, investment in all aspects of mobility — such as mobile devices, applications, middleware, and services — will increase.
  • The workforce wants employers to support mobility at work. The consumerization of smart mobility devices like smartphones and tablets is beginning to have an impact on the enterprise front. More than 60% of employees want to use smartphones at work.
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