Huawei targets enterprise deals at $7 billion by 2012


Huawei Technologies Co Ltd (Shenzhen, P.R.C.), the world's second largest network equipment maker, expects its deals in the enterprise sector to total more than $7 billion by next year, banking on demand from key markets such as China, a senior executive said.

Huawei also plans to triple staff numbers at its enterprise unit to about 30,000 in the next three years from 10,000 expected by the end of this year, to compete with the likes of Cisco Systems Inc and Hewlett-Packard Co, with half in research and development.

Huawei signed contracts worth $2 billion last year and aimed to double that figure to $4 billion this year and $7 billion next year, William Xu, president of Huawei’s enterprise business group division, told Reuters in an interview late on Wednesday at the World Economic Forum in the northeastern Chinese port city of Dalian.

The Shenzhen-based company aimed to expand its enterprise business aggressively in coming years, targeting contract sales worth $15-20 billion by 2015, Xu said.

"Cloud computing is a revolution in the IT sector and gives information and communications technology suppliers such as Huawei new opportunities to get into the enterprise sector," the Shenzhen-based executive said.

"Our key clientele used to be network carriers, but we're expanding into vertical markets in various sectors," he said, adding that Huawei would actively target sectors such as energy and transport, in which China is actively investing.

Huawei was restructured this year into three main units - one that supplies equipment to network carriers, another that makes consumer devices such as cell phones and tablet PCs and the third, the enterprise division led by Xu.

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

In the telecommunications sector, Huawei competes with market leader Ericsson and smaller local rival ZTE Corp in providing infrastructure equipment to network carriers.

Huawei derives its revenue, which totaled $28 billion in 2010, mainly from network equipment sales, but has been actively marketing consumer devices because of growing global demand for smartphones and tablet PCs.

Although Europe, one of its key markets, is embroiled in debt problems, Xu said the crisis had little impact on Huawei’s revenue.

"Some chief information officers, such as those in the financial sector, prefer to spend the same amount, but they are now demanding more for their money, especially since the economic climate is tough," Xu said.

However, the United States has been a difficult market for Huawei to crack as some politicians are wary of the company's secretive founder and Chief Executive Ren Zhengfei, a former military officer. But Xu said it was more an issue of familiarity that hampered Huawei from clinching deals in the United States.

"Clients in the North America are not familiar with the Huawei name. In the enterprise sector, many people haven't heard of Huawei, so that is something we have to work on with our partners," he said.

(Additional reporting by Li Ran; Editing by Chris Lewis)

Related Articles

Huawei unveils tablet computer in hopes of taking on Apple, Samsung

InterDigital files Nokia, Huawei, ZTE complaint

Huawei rejects China financial aid claim

Huawei increases smartphone shipment target to 20 million


Featured Reports

Current State of Fifth Generation (5G) Cellular and 5G Technologies

This research provides an in-depth assessment of both technical issues (enabling technologies, 5G standardization and research initiatives, spectrum bands, etc.) and business areas (market drivers, challenges, use cases, vertical market applications, regulatory issues, trial commitments, introduction strategies, and impact to CSPs), as well as analysis of the emerging 5G ecosystem.

Click to learn more

Understanding and Capitalizing on Mobile Payment Systems

Mobile payments is rapidly expanding with solutions, applications, and services. Mobile payments systems include technologies and solutions that deliver electronic commerce features directly across mobile-wireless devices. This report provides an understanding of mobile payments technologies, systems, major players and solutions, and an overall forecast for mobile payments for five years.

Click to learn more

More Featured Research

Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and

See all reports