Huawei: The most complex US market challenges Cisco

According to a report on May 12th, Beijing time, according to Reuters, John Roese, senior vice president of Huawei ’s North American R & D center, said in an interview that Huawei is accumulating strength and is preparing to launch a powerful challenge to rival Cisco in the US market . But he also pointed out that achieving this goal requires patience and time.

The U.S. market is the most complex

Rose said in an interview: "To date, the United States is the most complicated market we face. For us, entering the US market is similar to Western companies entering the Chinese market." Huawei US branch is headquartered in Plano, Texas The city, for the past ten years, has been selling basic equipment to US telecom operators. Routers and switches manufactured by Huawei can transmit data through the network and devices such as modems and smartphones.

Today, the company has proposed a new goal, which is to sell equipment to large US companies, and this market is currently dominated by Cisco. Huawei has set a performance goal for its corporate business units, which means that by 2015 global revenues will reach US $ 15 billion. Huawei anticipates that this year's enterprise business unit will reach more than 7 billion US dollars in global transactions, and will also spend 4.5 billion US dollars on product development. The business department provides routers, switches and other equipment.

Rose said: "We basically think that it will take a few years for the enterprise business department to reach a critical point, but the United States is not important for us to achieve revenue goals." Huawei's enterprise business unit revenue in 2011 was RMB 9.16 billion US $ 1.45 billion), a year-on-year increase of 57.1%, making it the fastest growing business unit of Huawei. Nevertheless, the proportion of enterprise business revenue in Huawei's total revenue is only 4.5%.

Rose has worked in technology companies such as Nortel Networks, Broadcom, Enterasys and Cabletron, and has extensive industry experience. Ross said that Huawei has not publicly set performance targets in the US market, but he made it clear that Huawei is accumulating strength and hopes to become a strong competitor of Cisco in the US market. Cisco is the world's largest network equipment manufacturer. Rose said: "Over the years, Cisco has indeed not met a real opponent, Huawei will change this pattern, we are not a trivial role."

Biggest competitor

Cisco CEO John Chambers (John Chambers) has always regarded Huawei as Cisco's largest competitor in the enterprise market, and promised to adopt more aggressive means of competition. Cisco had brought Huawei to court in 2003, claiming that the company infringed many of its patents. Only after Huawei deleted the allegedly infringing code did Cisco withdraw the lawsuit.

Rob Lloyd, Cisco's executive vice president, hinted that Huawei is still threatening Cisco, and he also questioned the company's ability to innovate. Lloyds said on Thursday ’s Cisco earnings conference call: “We clearly know that customers can see innovation from Cisco, but they cannot see innovation from Huawei. Frankly, imitation is not innovation. In In a cloud-centric world, information privacy and data security are the most important factors customers value, and these are not Huawei ’s strengths. "

Rose scoffed at Lloyd's remarks. He said: "If they (Cisco) want to openly view us as the number one enemy and the biggest threat, I would be happy to accept this compliment." But Ross admitted that Huawei is still a "small role" in the US market. Unable to challenge Cisco's dominance.

Of course, Huawei will not wait for it to die, and is currently fighting hard, accumulating strength and preparing to launch a powerful impact on Cisco. Huawei announced this week that Synne, a US IT product distributor, has become the company ’s US distributor. This is Huawei ’s first distribution agreement in the United States. This collaboration will help expand Huawei ’s strength in the US enterprise market. In addition, Huawei will launch a series of new products to compete directly with Cisco remote monitoring services and network switches.




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