Huawei targets enterprises at CeBIT

On Wednesday at CeBIT in Hannover, Germany, David He, president of marketing at Huawei enterprises, announced that Huawei plans to rack up $15 billion in enterprise contract sales in the next three years.  The telecom equipment maker also said that its 2011 enterprise contracts totaled $3.8 billion,

On Wednesday at CeBIT in Hannover, Germany, David He, president of marketing at Huawei enterprises, announced that Huawei plans to rack up $15 billion in enterprise contract sales in the next three years.  The telecom equipment maker also said that its 2011 enterprise contracts totaled $3.8 billion, almost double the amount made in the previous year.


According to Huawei (Shenzhen, P.R.C.), the enterprise technology market has lagged behind in innovation compared to the innovations and success in the internet industries.


During the first few days of the show, Huawei has made multiple product announcements targeted toward enterprises, including eight new switches, three core switches, seven access routers and seven WLAN access points.


The S9700/S57oo-LI series of switches provides a 320 Gbps per slot switching capacity and can reduce power consumption by 40%. The seven AR200/150 access routers, which are based on 3G architecture, allow cloud-based services to be extended to enterprises and decrease customer investment by 30%, says the company.


 Huawei has been demonstrating its cloud computing and network services, as well as its new telepresence service, which it expects to ship in the fourth quarter.


Huawei claims that its new telepresence service reduces the gap between screens from 12 cm to 5.5. mm, a twentieth of the size of gaps in products currently on the market. The company also said that its telepresence service reduces power consumption by 30% to 1700W.


According to Geoff Johnson, vice president of research at Gartner (Stamford, Conn., USA), Huawei having half of its staff placed outside China can put the company in a great position for enterprises if the channels are placed correctly. Johnson also said that Huawei can produce solutions that let a company build its own network, providing a do-it-yourself service.


In September, Huawei announced that it expected its enterprise deals to total $7 billion in 2012, which is more than double what it made in 2011.  By targeting enterprises, the world’s second largest telecom equipment maker is looking to compete with companies like Cisco and HP.