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Communication & Technology

Huawei gears up to rival Cisco in US


John Roese

Huawei‘s head of North America, John Roese, said his company was more than ready to take on larger rival Cisco Systems but noted it would take some patience – and time.

“The US is by far our most complex market … for us our entrance into the US is similar to a western company entering China,” Roese said on the sidelines of Interop, an internet technology infrastructure conference in Las Vegas.

For a decade, China-based Huawei has been selling infrastructure to US telecoms operators. It sells routers and switches that move data through networks and devices such as modems and smartphones, but now it aims to provide equipment to large businesses, a market dominated by Cisco Systems.

Huawei in September last year launched its enterprise unit and aims to generate US$15 billion worldwide in revenue by 2015. This year it expects its deals to total more than $7 billion worldwide.

The enterprise unit provides equipment such as hubs, routers and switches that run networks transferring data across corporations.

“We basically said it will take a few years to get to critical mass but the US is not critical to our revenue objective,” Roese said.

Huawei’s enterprise unit revenue rose 57.1 per cent in 2011 to 9.16 billion yuan (HK$11.26 billion), making it the fastest growing division though it contributes only 4.5 per cent of total revenue.

Cisco is the world’s leading maker of networking gear.

“There really has not been a legitimate major competitor for Cisco for a long time … and in comes Huawei and we are not a small player,” Roese said.

Cisco’s chief executive John Chambers (pictured) has repeatedly called Huawei its toughest rival in the enterprise market and promised to be compete aggressively.

In 2003, Cisco sued Huawei for allegedly infringing on patents. Huawei removed the contested parts and the case was dropped.

Cisco’s executive vice-president Rob Lloyd implied that Huawei was still imitating and questioned its security credentials. “The privacy of information, how data is protected, is forefront in our customers’ mind in a cloud-centric world,” he said.

Roese shrugged off the comments. “If they want to declare us public enemy No1 and their biggest threat, I am glad to take that compliment,” Roese said, adding that Huawei was still too small a player in the US to compete with Cisco.

But it is gearing up to take on Cisco. Huawei last week announced its first US distribution agreement with IT-distributor Synnex that will allow it to expand its presence in the US enterprise market. It is also launching new products that compete with Cisco’s telepresence offerings and network switches.

Still, the United States has been a difficult market for Huawei to crack as some US politicians are wary of the company’s secretive founder and chief executive Ren Zhengfei, a former Chinese military officer. There are also concerns regarding the security of its hardware.

South China Morning Post
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About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee

Discussion

3 thoughts on “Huawei gears up to rival Cisco in US

  1. Reblogged this on Craig Hill.

    Like

    Posted by Craig Hill | May 14, 2012, 7:03 pm
  2. Huawei – are massive – every little hub and usb I have have … is theirs. Every mobile internet use their hubs.

    Like

    Posted by viveka | May 15, 2012, 12:48 pm

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  1. Pingback: Australian government blocks China’s Huawei « China Daily Mail - May 23, 2012

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