Huawei's Heavy Product Swords Intensifies Competition in the New Battlefield Enterprise Network Market

The corporate network market still falls far short of the competition. To use Huawei as the theory of towel twisting, the corporate network market will become another source of profit for Huawei in the future.

The emergence of CloudEngine12800 not only made people see Huawei's determination, but also made Chambers unable to sleep.

In this round, Huawei made a beautiful market battle.

On June 6th, Huawei held the "Cloud Engine, Chengde Future - Data Center Switch and Cloud Fabric Solution Launch Conference" in Beijing, and officially released CloudEngine series data center switches for cloud computing. "The CloudEngine series is the flag that matches our brand. This product itself is very competitive in the data center. Another very important reason, I think this product release is also a banner charge for us to fully enter the field of switches. No., or an oath,” said He Dabing, president of BG Marketing, a Huawei enterprise business, confidently speaking.

CloudEngine series data center switches provide the industry's largest single-box 48T switching capacity. This may be difficult data for the average consumer. But for the network equipment industry, this is tantamount to a punch--Huawei has finally opened the door to the enterprise switch industry, which has been the site of Cisco. However, this is not a Huawei raid.

On May 6th, at the Interop 2012 held in Las Vegas, China, Huawei's booth stood on the opposite side of Cisco. Huawei's equipment not only attracted customers, but also attracted Cisco. He Dabing recalls, “At that time, many people at Cisco came to see our equipment. We are very open-minded, we will tell them about the performance of our products, ask them for their opinions or exchange opinions.” In response, Cisco plans to incorporate the SDN concept into it. In Cloud Connect, this is a new cloud network platform Cisco plans to launch this year. The competition in the corporate network market continues to intensify.

However, this does not affect He Dabing’s confidence in Huawei’s corporate business. Since the establishment of Huawei Enterprise Business BG, it has ushered in a strategic banner product; and this product has at least one year ahead of Cisco's similar products. The Huawei Engine's HuaweiEngine has achieved this year enough time for Huawei to complete its strategic network layout. “Huawei will be able to be the first in the Chinese market this year. This is not just our confidence. No one of our partners is skeptical. They say that this market will be Huawei sooner or later.”

After the establishment of Huawei Enterprise Business BG, the corporate network market became an important goal of Huawei. He Dabing said: “We have several important strategic layouts. First, we focus on ICT, because in this field, we have accumulated the advantages and priorities of R&D. Today, the exchange itself may have been established for more than a year, but in fact there are A lot of early accumulations. Second, we have been integrated for a long time. We have more to sell through channel cooperation. Huawei is more to provide technology and solutions. Thirdly, from sales and markets, Huawei Determined the "HighTouch + partner" sales model, "HighTouch" means that Huawei is going to contact customers, especially some large industry customers, because we must understand his needs, while drawing our research and development, the solution can be better To allow these industry customers to understand and approve. In terms of commercial transactions, it may be that the partner-based approach is to sign the contract with the end customer."

In 2011, Huawei's corporate business BG had a global sales income of 9.2 billion yuan. "The growth rate of Huawei's corporate business BG in 2011 reached 57.1%, and we expect this year's growth rate to exceed that of last year. Our goal is to order 15 billion US dollars globally in 2015." He Dabing said firmly.

"IT Times": You just mentioned that the number of switches issued today is more than one year. How big is the investment in R&D? How about the price of the switch released this time compared to Cisco?

He Dabing: In fact, this product began its key technology project in 2009. The current direct investment is more than 600, plus the platform sector, in fact, nearly 1,000 people. Our price advantage is not simply to compare, for example, he is a slot, two 100G; I have a slot, 8 100G, can not ask me eight 100G cheaper than his two 100G, which is unreasonable. But the same port, I am certainly cheaper than Cisco, we have a reasonable price.

"IT Times": I heard a message that people inside Cisco are talking about, they also attach great importance to China three, that is, China that was bought by HP. In fact, in the corporate network market, Cisco is now the most important provider. It is relatively early for Huasan Communications to do so. In this market, what do you think of the position of Huawei Enterprise BG?

He Dabing: I think Huawei is the Hewlett-Packard China network. The location of the Huawei enterprise BG should be viewed in several ways. First, compared to HP, I think our advantage is still very obvious. The investment capacity of our R&D, and the accumulation of previous technologies, including the ITEF we mentioned today, and the investment in IP standards organizations, are all our strengths. We have had a "new vision of ICT", which includes the development and drafting of new IT standards for ITEF. You can look at it. We are now second, and HP is behind us.

But from another perspective, we don't think we have too much competition for Cisco now, and we still have a market that is not competitive enough like the switch market. I think we enter this field and it is very important to promote the overall innovation capability in this field. Of course, competition itself is to promote innovation, and innovation also requires competition to stimulate, without competition, there is no incentive for innovation. Cloud technology is also driving great changes in the industry and requires competition to stimulate innovation.

"IT Times": When considering this product at the beginning, is the demand of the industry's customers already in this position, need to introduce such a high-end product? Also, is the switch this time a representative that Huawei needs to break through? Are there any factors in this aspect of planning? When planning, is it planned from the entire cycle of a product line?

He Dabing: When we plan a product, the first point must be based on the fact that we have studied the market demand. The market needs products. The product itself has a great business opportunity and it can achieve commercial success. From the server point of view, in recent years from GE, 10GE to 40GE to 100GE, the need for port migration exists. For the data center, there is a window of opportunity for the transformation of the network structure, so we have to enter this market, which is a basic factor.

From another point of view, that is the second point you just mentioned. This is also a very important factor. Huawei believes that we are already a technological leader in the IP field. In the field of switches, we need to have a flagship product that matches our brand image. This is why we have this high profile and solemnly to do such a product launch conference, including a very important reason that we have also participated in the event. In the field of operators and IP, our core routers and new shares are far ahead. We think this matches our status. In the field of switches is also the same, we have a lot of products, such as high-end 93,97 (series switches), the following 57,77,27,17, we have a very complete, very complete switch series, but we need a Flags, flags that match our brand, we think CloudEngine 12800 is this product. So I just spoke on Weibo. On the one hand, this product itself is very competitive. Another very important reason is that the release of this product is also a banner charge for the full access to the switch field, or it is an oath.

“IT Times”: At present, Huawei’s BG’s business structure is well established. Where is the focus of this year?

He Dabing: At the end of last year, after the Huawei company identified our strategy, we focused on ICT. In all areas related to this, we will launch high-quality products. We have a core switch in the network area. The next step in the data center, for example, in the storage area, and in the UC field, we will also have a competitive product. This is a key point, on the other hand, channels. There is the brand. This is what I control. In the Chinese market, we believe that Huawei's brand is not at least a particularly big obstacle, and there are still some obstacles overseas, especially in the United States and European markets, we also need to do a lot of marketing, so you see me running around, It is busy.

Actively enter the US market "IT Times": What is the status of this enterprise-class product in the US market? Is there any progress in expanding now?

He Dabing: First, from the standpoint of expanding itself, we mainly cooperate with partners in the United States. Second, from the beginning, we have learned from Huawei, Huawei, and some of its customers and partners who are more likely to recognize Huawei. If we start to do government or finance, the barriers to the market itself will also be high. We will do some retail business. The United States also has a lot of retail sales, including some of its businesses, and some of these markets. We will give priority to expanding from such a customer group that easily recognizes Huawei. We are already in the United States market. In fact, we already have some customers and we should still be quite big.

"IT Times": Huawei's brand in the US market, including corporate business, is relatively weak. He Zong, how do you see this issue?

He Dabing: I did a global brand survey last year. We are more famous in the United States than in Western Europe. Because it is an important point, in the field of IT, the United States is the birthplace of technology, many original manufacturers. When we also appear as an original manufacturer, the industry in the United States is likely to cause interest or cause some discussion, so it will spread faster in the US market.

"IT Times": They buy products, more emphasis on product performance?

He Dabing: Americans are actually very practical and diversified cultures. Therefore, in Western Europe and the United States, we have also stepped up our efforts in brand expansion. We hope that more people will know Huawei.

"IT Times": He Zong, you have been emphasizing Huawei's channels. For such a relatively high-end product released today, for many manufacturers, it is actually very easy to become a good product, it may become A company's benchmark, but in fact its sales, because after all, due to its price, performance, etc., may not say so much as the low-end products. I would like to ask, is there a good way for us to push our relevant products with our channel?

He Dabing: This can be discussed, because it is very important that such a high-end sales, it will actually drive a lot of sales of your next product, because after all, our product is with the entire product line, we are from In terms of BG assessment, it is also an overall assessment. I don't think this is too much pressure for us. For the channel, he sells such products and will also have a great impact on him because he can seize such a large project. Such a large customer base is also attractive to him because a real marketer likes to attack the hills. We very much welcome such partners, so we also invited a lot of channels at this press conference. participate.

"IT Times": According to the channel, there is no information on sales?

He Dabing: In front of several channels, I also participated in the discussion. We are very excited about several channels and they said that Huawei's switches are finally heading. Because our own switches now have more than 150 models. For him, he represented Huawei's products. He also wanted to do some brand development and market expansion for Huawei products. For him, this is also a great incentive. For all the channels, he looks at both ends. One is to look at customers and the other is to look at vendors. In a sense, channel providers also have to manage vendors, various products, he wants to manage, he also goes to research, which products customers buy and how tired they are. In cooperation with Huawei, you will look at your customers wholeheartedly. Huawei will also take a look at it with you to study this customer and to haul customers. Is there any new demand, is it not good? This is what we often say, our product line length, the value it brings to customers and channels. So for them, after our product line is filled up, it is definitely a great benefit to them.

“IT Times”: In April, Huawei’s annual report disclosed that it had realized sales revenue of 9.164 billion yuan in business operations in 2011, an increase of 57.1% year-on-year. The growth is very fast. What is your current forecast for 2015?

He Dabing: Our goal is to purchase 15 billion US dollars worldwide.

"IT Times Weekly": That is basically one third of Cisco's current, then what is the goal in the Chinese market?

He Dabing: Our strategy is very clear. We must do NO in the Chinese market. No one of the partners suspected this, saying that this market will be Huawei sooner or later. However, in order to achieve this goal, we still have a lot of work to do, we must strive to expand the market and customers, especially the need for strong support from channel partners.