During Huawei’s 2012 EMEA Analyst Event in Amsterdam, Huawei emphasised once again its commitment to Europe and its dedication to innovation. With sales of $3.8bn, 7,300 staff, around 800 of which are in R&D, and 10 R&D centres in Europe, Huawei has positioned itself as a leading provider of network infrastructure in the region. The main themes that we picked up during the event are:
Its carrier activities are increasingly dominated by software. Huawei emphasises the role if IT and software as a core focus area of its carrier network infrastructure activities, which still account for 74% of sales, going forward. Softcom, Huawei’s strategy to drive software defined networking and to move towards a flatter network architecture, is central to this transformation. By 2017, Huawei aims to generate around 40% of its network infrastructure revenues from software-related activities. The central goal of Softcom is to decouple applications from hardware in the network infrastructure and to integrate multiple operating systems into one cloud-based operating system. To succeed, Huawei needs to attract top IT expertise. Its partnerships with leading universities and research organisations like Fraunhofer-Gesellschaft go some way.
The other day I had an interesting discussion with Google about their Fiber-to-the home (FTTH) infrastructure. Google’s reasoning behind the move into the network infrastructure space stems from the belief that online growth and technology innovation are driven by three main factors:
The cost of storage, which has fallen considerably in previous years.
Computing power, which has increased in previous years.
The price and speed of Internet access, which has been stagnant for a decade. Today, the average Internet user in the US receives 5 Mbit/s download and 1 Mbit/s upload speed.