Feeds

Hidden dragon Huawei: 'We’re making increased efforts at transparency'

Can the telecoms kit maker make it big in biz IT?

Intelligent flash storage arrays

UK.gov CIO-turned-Huawei-man: A 'systemic change' is coming

Convincing risk-averse CIOs of the safety and security of its kit will be an on-going issue, although Huawei has a big hitter on its team in recruiting former UK government CIO John Suffolk as its global cyber security officer.

It doesn’t help either that stories of security vulnerabilities in USB modems, routers and other kit emerge from time to time, especially when the firm is criticised for its poor incident response capabilities. To be fair, Suffolk has promised “systemic change” within Huawei, so something is being done, but in the meantime any security problems will reinforce the negative perceptions of the biz which perhaps some of its global rivals have not faced on the same scale.

Huawei's corporate controller CT Johnson also made efforts at the analyst summit to reassure enterprise customers across the globe that the firm is also trying to answer criticism, especially from US lawmakers, that its opaque corporate governance makes it difficult to determine what role if any the Chinese government plays behind the scenes.

“Being a vendor of network infrastructure means people outside of Huawei want to know what’s going on inside Huawei,” he said. So we’re making increased efforts at transparency and openness…It’s something you’ll see more of going forward.”

Compliance, security and regulatory woes aside, however, IDC’s Song claimed Huawei needs greater clarity in its enterprise product portfolio, and around which offerings are home-grown Huawei products and which are the result of partnerships, as per the Symantec JV.

“The story it’s trying to push is still a work in progress and the solutions are a little confusing, in the naming and overall message they want to deliver to clients,” he said. “Huawei is also very hardware-centric in its messaging. It needs to attach multiples to the hardware it sells through consulting, services and maintenance. The dynamic of the datacentre is changing and hardware margins are getting thinner and thinner.”

As to whether Huawei can do the unthinkable and achieve market-leading success in consumer, carrier and enterprise segments, even Eric Xu admitted in his keynote it will be a challenge, if not a downright “miracle”.

Forrester’s Wang claimed enterprise customers will be the key to achieving this miracle, arguing that Huawei still needs to put more effort into making its channel programs more attractive, as well as "localising" expertise, and improving its vertical capabilities – something it has traditionally not had to do with a carrier business legacy.

IDC’s Song added that there was a “healthy level of scepticism” amongst the analysts attending in Shenzhen this week of Huawei achieving a 45 per cent CAGR in its enterprise business.

“The technology is sound and the enterprise business is barely two years old. IBM and Cisco were not as prolific when they were at this stage,” he said.

“But the ICT market itself is growing at only 4-5 per cent. Huawei has to be the number 2 or 3 player in almost all the product markets it plays in. The challenge here is how does Huawei get customers to switch from Cisco, EMC or HP. Pricing play, yes. But what else?” ®

Remote control for virtualized desktops

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.