Huawei’s Enterprise Channel Strategy is Making Progress

I was encouraged to see that Huawei had a proper track session on its channel strategy during its 10th Global analyst summit in Shenzhen.  The track is another sign that the company’s enterprise division is maturing and taking the right steps to expand its activities in China as well as globally.

In 2012, Huawei recruited 1,289 distributors, VAPs, and tier 2 channel partners to reach around 3,789 worldwide, which represents growth of 52% in China, Europe, and 26 other key countries globally.  Huawei’s enterprise share of channel sales was around 55% (excludes Operator resale) of its total revenue in 2012, a 32% revenue growth through channels from 2011. Huawei is also starting to build its services and software ecosystems with 700 authorized service partners and 200 ISVs. 

Overall, three key things that stood out to me about Huawei’s partner programs are:  

  • A more structured and well-defined partner program: The partner program has evolved considerably since last year and Huawei is working towards mapping its key accounts and streamlining the account management process.  Through the segregation of 5000+ named accounts (key accounts based on deal size) and defining the customer engagement model for high value accounts, Huawei can bring about the clearer channel architecture that will be required to build an open and successful channel ecosystem.
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2013 Huawei Global Analyst Summit: welding together networks, devices and services

 

Dane Anderson, Dan Bieler, Charlie Kun Dai, Chris Mines, Nupur Singh Andley, Tirthankar Sen, Christopher Voce, Bryan Wang

 

Huawei is one of the most intriguing companies in the ICT industry, but its overall strategy remains largely unchanged: imitating established products and services, then adjusting and enhancing them, and making them available at an attractive price point. But to be fair: Huawei is pushing more and more innovative products.

In 2012, Huawei’s annual revenue growth slowed down to 8% to CNY 220 billion (about US$ 35 billion). During the same period, its EBIT margin remained flat at 9%, despite the changing revenue composition due to the growth of its consumer and enterprise business. Unlike last year’s event which was dominated by the announcement to push into the enterprise space, this year’s Global Analyst Summit in Shenzhen saw little ground breaking news. It was more of a progress report:

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