Huawei Technology Co. Ltd

Huawei Technology Co. Ltd Overview

Huawei Technologies Co. Ltd (Huawei) is one of the leading providers of global information and communications technology (ICT) solutions. The company offers competitive solutions, products, and services to telecom service providers, enterprises, and consumers. The company operates through four business divisions—carrier business, enterprise business, consumer business, and Huawei cloud. The carrier segment offers products and services in 5G networks, NB-IoT, and all cloud networks covering NFV and SDN contracts. Additionally, the carrier business offers testing for 5G and all-cloud networks and digital O&M systems for data centers. The enterprise segment offers various solutions for the cloud, big data, campus networks, data centers, and IoT domains. The consumer business segment includes high-tech products that offer a premium user experience in end-use applications. Huawei Cloud is the newest segment include by the company that offers customers with stable, reliable, secure, and trustworthy cloud services for various industry verticals such as manufacturing, healthcare, e-commerce, connected vehicles, high-performance computing, IoT, and SAP applications. The company has its presence in Europe, Middle East & Africa (EMEA), Asia-Pacific, and the Americas.

Strategy

Huawei is focused on increasing investments in its business segments that allow it to provide better services for connectivity and cloud, securing a solid share of opportunities in the market. The company also emphasizes investments in key countries such as India, which enables it to enter high growth markets. It intends to enhance the management systems of its mature businesses. By streamlining methods and process management, it aims at enhancing the customer experience and improving its operating efficiency. To achieve this, the company intends to provide more decision-making authority to frontline teams and transform its function-based operating model. In this model, all high-quality functions are expected to be combined into a comprehensive service platform.

Company Snapshot

$78.52M

Revenue

SWOT Analysis

Strengths

Wide geographic presence
Increased revenue
Focus on R&D
Wide geographic presense
Focus on research and development

Weaknesses

Weak operational efficiency
Weka operational efficiency

Opportunities

Rapid growth of software-defined networking and network function virtualization markets
Strategic merger & acquisition in the IoT market

Threats

Trade wars with western countries threatens key revenue generating markets
Trade war with western countries threatens key revenue generating market

Key Developments

Date	Approach	Development
September 2018	Collaboration	Huawei launched its three-layered open SD-WAN architecture, working with partners to build a leading SD-WAN solution. This solution provides open capabilities in terms of universal customer premises equipment (uCPE), interconnection with third-party application systems, and multi-cloud deployment. Partners can quickly interconnect with the open interfaces and service platforms provided by Huawei’s SD-WAN solution to obtain value-added services (VASs) in minutes and achieve fast integration with operations support systems (OSSs), business support systems (BSSs), and third-party portals, helping carriers build efficient and flexible WAN networks.
December 2017	Collaboration	Vodafone selected Huawei as an approved vendor to supply its FusionSphere OpenStack platform, supporting the company’s global rollout of network functions virtualization (NFV) and software-defined networking (SDN). Vodafone aims at driving the adoption of NFV and SDN technologies across its business departments as part of its digital transformation efforts. The company plans to increase agility, consistency, and efficiency throughout its business over the next few years, with the aid of Huawei’s OpenStack platform.
September 2016	Product Launch	Huawei released a new commercial software-defined networking (SDN) controller called Agile Controller 3.0, which is based on open source components. The Agile Controller is based on the open source ONOS controller managed by the Linux Foundation, but it is also compatible with the OpenDaylight Project (ODL) controller via APIs. The Agile Controller can federate up to 128 controller units and manage 256,000 virtual switches to network data centers, campus networks, wide-area networks, and IoT applications.
November 2017	Partnership	Gemalto and Huawei – via its semiconductor arm, HiSilicon, announced their partnership to develop NB-IoT modules with a focus on security and low power consumption. These modules can be used in a range of IoT devices to reduce both size and production costs. The initiative will combine expertise from both companies in an effort to appeal to manufacturers to meet the growing demand for NB-IoT enabled devices.

Product Offering

Huawei Technology Co. Ltd
- Software-defined networking

Financial Performance

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