Feeds

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

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

Seven Steps to Software Security

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?” ®

The smart choice: opportunity from uncertainty

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.