Central Federal District of the Russian Federation
Huawei – the supplier of infocommunication solutions, which purpose – to enrich life of people through communication. Founded in 1987, Huawei is the private company which is completely in ownership of the employees.
For July, 2019 in Huawei 188,000 people in more than 170 countries and regions of the world work.
2020: Cloud and solution AI became separate division
In January, 2020 Huawei Technologies announced restructuring within which the Chinese company created the fourth main division — Cloud & AI. It as it is possible to understand from the name, will focus on developments in the field of artificial intelligence and cloud computing.
Thus, by January 21, 2020 the structure of Huawei includes the following main divisions:
- Carrier Business Group (telecommunication equipment and services);
- Enterprise Business Group (servers, DWH and different IT solutions);
- Consumer Business Group (CBG) — was created in 2003 and offers mobile phones, mobile broadband (MBB) devices and devices for the house;
- Cloud & AI (public and private clouds, Big Data, services for data storage, Internet of Things and cloud computing).
The division of Huawie Cloud & AI was headed by Hou Jinlong who was earlier holding a post of the president of division on products and services in the field of AI and clouds.
Huawei develops strategy under the name Cloud Only. It is directed to integration of all resources of the company — from chips and data processing centers to hardware, program and computing infrastructure — to make a cloud of Huawei the full-scale platform which is focused first of all on the Chinese market.
By the beginning of 2020 Huawei remains the fifth in value operator of public clouds in the market China – after Alibana Tencent, China Telecom and Amazon Web Services (AWS). At the same time the specified top five occupies 75% a market share of services IaaSPaaS//SaaS the countries, reports the DigiTimes portal with reference to data of analysts IDC.
According to the Ministry of the industry and information technologies of China (MIIT), one more million companies in China in 2020 will use cloud services for production, operational work and management.
Business in Russia
- Huawei Russia
- Partner ecosystem of Huawei in Russia: as she is suited and what plans for development
- partners in Russia
Huawei works in Russia since 1997.
Business in Lithuania
Main article: Financial performance of Huawei
2019: Growth of revenue by 19.1% to 858.8 billion yuans
On March 31, 2020 the Huawei company published the annual report for 2019 reflecting high rates of business activity. Revenue of the company from sales worldwide in 2019 approximately made 858.8 billion yuans that is 19.1% more than indicators of 2018. The net profit of Huawei reached 62.7 billion yuans, and amount of money which arrived from operating activities exceeded 91.4 billion yuans, having shown growth by 22.4% relatively 2018. Within long-term continuous investment into modern technologies and researches the Huawei company enclosed in Research and Development 15.3% of the revenue for 2019, or 131.7 billion yuans. The total costs of the company of Research and Development for the last decade exceeded 600 billion yuans.
|The 2019th was outstanding year for Huawei company. Despite pressure from the outside, our command surely moved forward, having focused only on bringing more benefit to clients. We worked hard gaining their respect and trust, as well as respect and trust of our partners worldwide. Our business remains stable,|
noted the acting CEO of the company Eric Xu
In 2019 the Huawei Carrier business group took the leading positions in the field of commercial deployment of 5G networks. To expand possibilities of commercial application and to stimulate further development of advanced technologies in the field of a 5G, the company together with partners – telecom operators created the innovation centers for promotion of a solutions 5G worldwide. The solution of Huawei for base stations of RuralStar allows to cope effectively with covering problems in rural areas. For March, 2020 it is applied approximately in 50 countries and regions, providing over 40 million residents of remote areas with the mobile Internet. In 2019 revenue from sales received by the Huawei Carrier business group grew by 3.8% relatively 2018 and reached 296.7 billion yuans.
The Huawei Enterprise business group continues to help to perform to clients from a set of the most different industries digital transformation and to lay the foundation for the digital world. Over 700 cities and 228 companies selected Huawei as the partner in digital transformation from the Fortune Global 500 list worldwide. In 2019 the Huawei company announced the strategy in the field of computer calculations aimed at preparation of fertile soil for future growth and prosperity of the intellectual world. Within this strategy the company provided the fastest in the world AI-processor Ascend 910 and the cluster Atlas 900 designed to accelerate training of AI. In 2019 revenue from sales to Huawei company in a segment of corporate solutions reached 89.7 billion yuans that is 8.6% higher than an indicator of 2018.
The Huawei Consumer business group still steadily grows; deliveries of smartphones for 2019 made 240 million units. The company announces successful promotion in the ecosystem development area "Artificial intelligence for all occasions" (Seamless AI Life), covering all possible options of application and different devices, including personal computers, tablets, wearable electronics and intelligent displays. In 2019 revenue of the Huawei Consumer business group increased by 34% in comparison with last year, having made 467.3 billion Chinese yuans.
|In the future an external environment will become only it is more difficult. We need and to increase further competitiveness of the products and services, advancing open innovations and bringing more benefit to our clients and society in general. It is the only way to seize the historical opportunities which are given us digital and intellectual transformation of industries, and to support steady growth in the long term,|
warns Eric Xu
Sanctions against Huawei
Main article: Sanctions against Huawei
Huawei builds in Cambridge the research center for $1.24 billion
At the new enterprise about 50 thousand square meters developments in the field of optical devices for use in fiber optic data transmission systems will be conducted. There about 400 jobs will be created.
|In Britain active and public market and also some of the most talented people in the world, - the vice president of Huawei Victor Zhang said.|
It is supposed that the new research center Huawei will contribute to the development of technologies of information transfer in fiber optic lines at world level. Its arrangement will allow to achieve close interaction not only with other companies of the sector, but also with scientific community, the press release says.
Huawei said that these investments will become an important incentive for development of the sphere of high technologies in the region that will help Cambridge to become stronger as the global innovation center. After input of the research enterprise in operation it can become for the company the international office which is responsible for a company performance in the market of optoelectronics.
Huawei permitted to construct the research center in Britain in spite of the fact that local authorities by the end of June, 2020 did not decide on whether it is worth allowing the Chinese producer of telecommunication equipment to construction of a communications infrastructure in the country, in particular 5G networks. At first the government permitted Huawei to participate in creation of a 5G technology, having introduced only some restrictions. However in May, 2020 the British National center of cyber security started studying of this question again.
The employee of Huawei tried to enter vulnerabilities to the main kernel of Linux
On May 13, 2020 TAdviser knew that the Huawei corporation appeared in the center of large scandal with a conspiracy musty smell again: it was accused of attempt of sabotage of security of a kernel of Linux. Read more here.
Charges of imprisonment of dozens of employees dissatisfied with the company
On April 24, 2020 it became known that Huawei illegally imprisons every year more than ten employees. With respect thereto two former employees of the company — Zeng Meng and Li Hongyuan — demand from it for it apologies and compensations.
Both victims filed complaints to Huawei in April, 2020. Man — in police of the Province of Guangdong and prosecutor's office, and Hongyuan — in police of Shenzhen. At the same time the last refused to issue the certificate of reception of an application.
Meng and Hongyuan were arrested in December, 2018 after Huawei detected on the Internet a chat in which both of them together with three other employees of the company discussed the charges of the USA brought to Wanzhou Maine, to the chief financial officer and the daughter of the founder of Huawei suspected of sale of the equipment to Iran in circumvention of the American sanctions.
One of participants of a chat (his name is not told) wrote that it has proofs of sale of the equipment to Iran.
Meng was arrested during the holiday in Thailand. After detention it was transported to Shenzhen where he spent in prison about three months. Then in 2019 it was released on bail.
|All this time the police entered itself as gangsters — he said, having added that its notebook still is at the disposal of representatives of law and order. Apology and compensation — we want both that, and another! — he told the correspondent of Financial Times.|
Li Hongyuan, in turn, already spent earlier in prison 251 days (about 8 months) on the case which is also connected with Huawei. He worked in the company of 13 years and was dismissed. Dissatisfied with the granted severance pay he submitted to firm the civil action with the requirement to increase the amount of compensation on the occasion of dismissal.
In reply the equipment manufacturer of communication transferred to him the required amount, 300 thousand yuans (about $43 thousand). then accused of racketing. In January, 2018 Hongyuan was detained. In August, 2018 the court dismissed the case in a lack of proofs, released it and obliged to pay it compensation in much smaller size, only 107 thousand yuans ($15 thousand).
Huawei achieved arrest and other participants of a discussion which was conducted on the popular Chinese WeChat platform though the content of their conversation did not allow to draw a conclusion that the company behaved in Iran illegally.
|In China large corporations with broad influence in the industry, such as Huawei, are capable to put pressure upon local authorities — David Zhang, the lawyer of the Beijing law firm Mo Shaoping told.|
He added that the Chinese legislation provides police the big power, and there is "a set of legal methods to prolong the term of detention of the suspect even without proofs — 251 days quite normally".
Huawei, in return, aims to keep calm and dispassionateness in this situation. The company refused to comment on claims of the former employees. And on the request of journalists connected with the previous case of Li Hongyuan quoted the answer which it gave earlier:
|We understand and we appreciate public interest in this case. It was not the employment dispute, and we announced the authorities suspicion of illegal behavior.|
Victims said what to them as they consider, will difficult use the Chinese system of law for fight against Huawei and achievement of justice. Therefore they expect to draw the maximum public attention to events. They already achieved loyalty of residents of China, many of which changed the attitude towards the producer, and now again expect the help of mass media. 
Development of technologies for unmanned vehicles
In the Chinese company the separate division which specializes in development of smart automobile solutions was created. At the same time special attention will be paid to developments for autonomous driving and also to automobile communications and computer systems for vehicles. Is not going to create own machines of Huawei.
According to the German research agency IPlytics, Huawei is among the companies having the greatest number of patents in the field of robomobiles and technologies of communication for motor transport. In October, 2019 Huawei had 66 such patents or 21% of a total quantity in the world. It is less, than at LG Electronics, but it is more, than at Intel (21) and Qualcomm (10).
As told the Nikkei Asian Review edition the informed sources, Huawei set for itself the task by 2025 to become the producer of platforms, largest in China, for unmanned vehicles.
|The relation of Huawei to autonomous driving became very energetic. Huawei asked us to prepare a set of tests in 2020, despite threats from a coronavirus which hung over the industry — one of suppliers of Huawei reported the edition.|
For development of technologies for pilotless cars the Chinese company asked for the help several experts. One of them reported to the edition that Huawei nourished idea for invasion on this market for several years, and by the end of March, 2020 it began to look for very actively specialists for research and development.
|Everything that wants Huawei, is to follow the example of Apple — the interlocutor told.|
Canceling of a conference for developers because of a coronavirus
At the end of January, 2020 Huawei postponed a large developers conference in connection with the outbreak of a coronavirus in Wuhan. The HDC.Cloud 2020 conference was going to be held in Shenzhen from February 11 to February 12, but for security of participants the action was postponed to March 27-28.
The conference is the main action of Huawei for IT developer and is focused on the different companies.
|We want to share the technologies and opportunities of ICT developed by Huawei company for the last 30 years — the representative of Huawei explained.|
However Huawei will hardly become the last Chinese company which will change the diagram of upcoming events. The CEO of Foxconn Terry Gou warned employees that they did not visit continental China during the forthcoming New year according to the lunar calendar. The authorities of China already closed Wuhan in which more than 11 million people live — the airports and the railway stations of a source of a dangerous infection are blocked to the further notification.
It is known that by January 23, 2020 the virus already claimed the lives of 17 people. In general 440 cases of infection are confirmed, and the infection already got into other Chinese provinces and also on the territory of the USA, Thailand and South Korea. The virus which received name 2019-nCoV is transmitted mainly in the airborne way. So far it is not clear how effective will be measures for control of an infection. Experts are afraid that many cases of infection can still remain unrecorded that increases the probability of spread of a virus, despite the taken quarantine measures. According to preliminary estimates, the number of infections can exceed 1700.
Huawei: we invested in a 5G more, than Europe and the USA combined
From 2009 to 2019 Huawei invested more than $4 billion in research and development of technologies for networks of fifth generation (5G). It is more than similar investments of the USA and Europe combined, claim in the Chinese company. Huawei made this statement at the end of December, 2019 in response to emergence in media of information that the Chinese government provided to the producer a financial support in the amount of $75 billion Read more here.
Receiving in China state supports in $75 billion
At the end of December, 2019 it became known of large state support which is got by the Chinese Huawei in the homeland. The company claims that all its achievements are a consequence of own investments into research and development.
Journalists of The Wall Street Journal (WSJ) made investigation and found out that in two decades financial aid of Huawei from the authorities of the People's Republic of China made $75 billion. Here the subsidized credits, tax benefits and direct financing belong.
The most part of the specified amount — $46 billion — fell on providing cheap loans and other financial resources from state banks. Thanks to tax eases of Huawei could save $25 billion during the period from 2008 to 2018. $2 billion more and $1.6 billion are according to a discount for the land plots and grants purchased by the company.
WSJ writes that the state support became one of important factors thanks to which Huawei could support lower, than at competitors, the price and which helped it to become one of the largest telecommunication companies in the world.
The calculations made by reporters are based on public documents, such as official statements of the companies and entry in the land book. Affirms that data retrieveds were checked by experts in subsidies, including the American non-profit organization Good Jobs First.
The press service of Huawei said to the edition that the companies were provided "insignificant" state subsidies for support of researches that is not something unusual. As for tax benefits, they were provided also to other participants of the technology industry. Only 0.3% of total revenue of the company were the share of subsidies which Huawei received from China and other countries on research and development, reported in it.
The employee of Huawei demanded compensation for dismissal, but he was arrested for racketing
At the beginning of December, 2019 the Chinese telecommunication corporation Huawei was criticized in own country as the employee of the company demanded compensation for dismissal, and he was arrested for racketing for eight months. Read more here.
Lease of 3 floors of offices in the center of Moscow
In September, 2019 it became known of lease of three floors by Huawei company in TDK "Smolensk Passage-2". There the Chinese producer of telecommunication equipment and mobile devices will open additional office. Read more here.
Vodafone found in the equipment of Huawei of a tab
At the beginning of May, 2019 the telecommunication giant Vodafone announced existence in the equipment of Huawei of a backdoor way for unauthorized access. The Italian division of the operator detected vulnerabilities in 2009, but Huawei did not eliminate them even after the appeal of mobile operator, having referred to production requirements.
Existence of tabs in devices of Huawei became known how U.S. authorities accuse the company of close cooperation by the authorities of China. The government claims that Huawei provides to Beijing data access of the users. Affirms that the Chinese vendor intentionally leaves backdoor ways in the network equipment and home routers for corporate espionage.
According to Bloomberg though only the Italian division of Vodafone was compromised, it is in danger there could also be personal data of users from Great Britain, Germany, Spain and Portugal. Experts revealed the built-in telnet-protocols by means of which Huawei could get access to devices. The company explained existence of this vulnerability with the fact that protocols are necessary for remote setup of the equipment. Telnet was developed in 1969 without cyber security and by default does not cipher communication. With release of SSH in 1995 he substantially lost the popularity, but on some devices remains for use in the local area network.
Fluent search revealed the identical vulnerabilities connected with earlier Telnet protocol in devices of D-Link, Cisco and Sony as bad security measures are not equivalent to malicious actions. On same Huawei refers, noting that intentionally it did not leave any holes, and the fact of a compromise of personal data was not proved. Vodafone continued cooperation with Huawei and even allowed the company to creation of infrastructure of a 5G networks which is not concerning critical components.
Britain started up Huawei to a 5G networks despite pressure of the USA
At the end of April, 2019 it became known that Britain permitted use of telecommunication technologies and the equipment of the Chinese company Huawei for deployment of 5G networks, despite the recommendations of the USA to refuse this step.
According to the newspaper The Telegraph, Huawei will get limited access for creation of separate "noncritical" components of network. It is meant that the company will not supply the equipment which can identify the mobile device and direct phone calls and data.
This news caused a barrage of criticism – many consider that the similar solution increases risk of cyber espionage from China. The USA actively called the closest allies among whom there are Britain, Canada, Australia and New Zealand, to refuse services of Huawei as the company can incur certain obligations to the Chinese government.
The head of committee on foreign affairs Tom Tugendhat said that to distinguish "critical" and "noncritical" components of network it is extremely difficult. He reminded that the Chinese laws force Huawei to cooperate with the state security device though no proofs of cyber espionage from the company were provided.
Huawei in turn claims that its activity does not pose threat in the field of espionage and sabotage. The company already supplied the equipment for the British mobile networks and emphasizes that it is ready to continue cooperation with the British government.
As far as we know, the decision was made at a meeting of National Security council of Great Britain. Legislators demand careful investigation of information leak from a confidential meeting of an office.
As reported TAdviser in the press service Huawei, the company welcomes plans of the British government to permit Huawei to take part in creation of mobile communication of fifth generation in the country.
|This approval means that the British companies and consumers will be able to get access to the fastest and trusted networks thanks to advanced technologies of Huawei, - said in the company.|
Opening of Information Security Center and openness
|The trust in information security field is a key question during a digital era. It should rely on the facts, the facts – to give in to check, and check – to be based on uniform standards. We consider that the effective model of trusted relationships during a digital era quite so looks.|
Ken Hu, vice-chairman of Huawei
Developments in the field of All Cloud, intellectual data processing and software-defined solutions set unprecedentedly difficult task in information security field within ICT infrastructure. The lack of consensus and technical standards, the test systems and support of legislature complicate this question even more. It is considered that responsibility for information security support is born by all participants of the industry and society in general therefore this problem needs to be solved through joint efforts.
The Information Security Center and openness in Brussels is urged to become the platform for communication and interaction of the state departments, technical experts, industry associations where they will be able to come to a consensus on security issues to a digital era.
First, in it complex developments of Huawei in information security field will be shown, since strategy and supply chains and finishing with Research and Development, products and solutions. It will allow to show practical examples of security at the expense of products and solutions of Huawei in the field of a 5G, Internet of Things, cloud computing, etc.
Secondly, the Center will simplify interaction between the company and the main concerned parties, it will be as a result simpler to develop strategies of information security and complex techniques of its providing. Huawei intends to work with industry partners, promoting development of standards of security and mechanisms of check to simplify implementation of modern technologies.
Thirdly, the Center will play a platform role for testing and check of security of products and to provide related services to clients of Huawei.
Information security support is considered a common goal for all concerned parties, including equipment suppliers, telecom operators and regulators. The concept of the company in this area – "Security or Anything". Information Security Centers and openness will allow clients and independent third controlling organizations to hold objective, reliable and independent testing and check of security according to the conventional standards and the advanced techniques. In these centers specialized test environments where clients and third parties get access to products, the software, technical documentation, test tools and necessary technical support of Huawei are created.
|We perfectly understand concern of people of rather information security in the digital world. I consider that the solution of this problem begins with mutual understanding, and for this purpose we open our center. We invite regulators, the standardizing organizations and clients to use this platform more closely to cooperate in area of standards, mechanisms of check and development of security technologies. Working together, we can increase efficiency of security systems throughout a chain of formation of cost and help to build up trusted relationships.|
Ken Hu, vice-chairman of Huawei
Top manager of Huawei: Us attacks the USA because we prevent the NSA to spy on everyone
Guo Ping, the acting chief executive of Huawei, passed an opinion on failure of the USA from a 5G equipment of the company and charges of cyber espionage in its address. On his belief, distribution of technologies of Huawei "interferes with attempts of America to spy on everyone", representatives of Huawei company reported on February 28, 2019 TAdviser.
|Me as representative of the top management of Huawei, often ask why the United States undertook the full-scale attack against us. Americans accused us of theft of technologies and violation of conditions of trade sanctions and, in general, prohibited us to conduct a business activity here. Mike Pence, the Vice President of the United States, reported NATO recently about "threat which is posed by Huawei", and the Secretary of State Mike Pompeo warned allies that if they use our telecommunication equipment, it will be difficult to USA "work with them. On Tuesday (on February 26 — a comment of TAdviser) on the World mobile congress the American delegation under the leadership of Adrit Pai, the federal commission chairman on communication of the USA, appealed not to allow Huawei to the international 5G networks again. Washington tried to blacken Huawei for many years. In the report of Permanent special committee Houses of Representatives Kongressa SSHA on investigation of 2012 we were called by threat. But until recently these attacks were rather reserved. Now, when the United States armed with serious arguments and represented Huawei as threat for the western civilization, it is necessary to ask the question "why" — Guo Ping considers.|
Poe opinion of the top manager of Huawei, the answer consists in classified documents of the U.S. National Security Agency which leak was organized by Edward Snowden in 2013. The U.S. National Security Agency created in 1952 monitors all electronic communications, such as e-mails and phone calls, within intelligence and counterintelligence activities.
Information disclosed by Snowden, according to Guo Ping, spilled light on the fact that heads of the NSA tried "catch everything" — all electronic messages and phone calls sent or made by each inhabitant of the planet every day. These documents also showed that the NSA maintains "corporate partnership" with certain American technology and telecommunication companies that allows the agency "get access to high-performance international fiber optic circuits, switches and/or routers worldwide.
|The Huawei company works in more than 170 countries of the world (as of the end of February, 2019 — a comment of TAdviser) and receives a half of the revenue abroad, but its headquarters is in China. It considerably reduces the probability of "corporate partnership". If the NSA wants to make changes to routers or switches for the purpose of listening, the Chinese company will hardly volunteer to help. For this reason of the NSA cracked servers of Huawei — the chief executive of Huawei is convinced. — According to the report of the NSA of 2010, "many subjects interesting us communicate with use of products of Huawei. We want to be sure that we know how to use these products in the purposes".|
The more the equipment of Huawei it is installed in communication networks worldwide, the everything is more difficult "catch the NSA", Guo Ping considers. Thus, the first reason for which the company was attacked by the USA is that Huawei "prevents" the United States to spy on everyone, the top manager came to a conclusion. The second reason, according to him, is connected with a 5G — this generation of technologies of mobile communication will provide information connection in the context of any objects — from smart factories to power supply networks.
|Huawei seriously invested in researches in area 5G for the last 10 years thanks to what we are ahead of our competitors approximately for a year. What makes us attractive to the countries which are going to update the networks to level 5G in the next several months — the representative of Huawei emphasized. — If Huawei in 5G network is possible not to allow the USA worldwide, representing the company as security risk, they will still be able to spy on everyone. Besides, America directly wins if it manages to crush the company which interferes it with digital domination. If they delay the leader in the field of technology 5G, it will nullify economic and social advantages which would be got otherwise by the countries which would implement technology before others.|
Meanwhile, the American legislation, including the Law "about control of activity of Foreign Intelligence Services" and the Law "about refining of legitimacy of use of the data which are stored abroad", allows, according to Guo Ping, to the American government to force telecommunication companies to help it within the program of the international shadowing if only the order was submitted as investigation in the context of counterintelligence activities or fight against terrorism.
In general, on belief of the chief executive of Huawei, sharp critical attacks to the company are direct result of the fact that Washington understood that the United States lagged behind in the development area of strategically important technology. At the same time the world campaign against Huawei has nothing in common with security, and is caused only by the aspiration of America to suppress the technology competitor gaining strength, Guo Ping concluded.
Opening of a campus in China with architecture of the known buildings of Europe
In January, 2019 Huawei opened a new campus on the bank of the lake Songshan in the city district of Dongguan (Province of Guangdong) in China. On nine square kilometers around the headquarters the company decided to locate the architectural complex copying the known buildings of Europe. Though works are still continued, Huawei already showed to the leading world media, including CNBC and Bloomberg, eight of twelve "cities".
The total area of premises reaches 1.4 million square meters. An object is in 40 minutes drive from Shenzhen where there is a headquarters of the Chinese producer of telecommunication equipment and mobile devices.
In the territory of a campus the set of the objects created on an image of the European sights — from the "Italian" towers to artificial lakes and classical palaces is located. The idea of copying of the known architecture is from around the world not new, but new office complex is designed to reflect the growing ambitions of Huawei and to make an impression on the public the company, undoubtedly, managed that.
Twelve zones will represent architecture of the European cities: Paris (France), Verona and Bologna (Italy), Granada (Spain), Bruges (Belgium), Cheski (Cesky Krumlov, Czech Republic), Heidelberg and Freiburg (Germany), Burgundy (France), Luxembourg, Oxford (Great Britain). In the territory the picturesque lake over which the bridge — the copy of Svoboda Bridge in Budapest was stretched was also located. The red lock located on that side of the lake is cast by the Heidelberg castle in Germany. In it the research division of Huawei will be placed.
In addition to offices, in a campus the Illy cafe, FamilyMart shop and gym were also located. For transportation of employees between buildings in a campus own tram line is started, and the trip between the most remote stops takes 22 minutes. Extent of tram ways is 7.8 km.
Any park in the European subject will not be complete without lock and therefore it is under construction in the territory stylized under Luxembourg. The basis of design of one of zones was formed by the University of Oxford. In total 108 buildings will be built.
Only clients of Huawei, employees and also their relatives will be able to visit the working space executed in the form of a garden.
As reported in Huawei, the campus in Dunguani is designed to create a quiet situation to inspire the employees. Why Huawei selected style of the European architecture? It is classical and "accumulated wisdom and an entity of mankind during hundreds of years, saving the history of progress and failures", explained in the company.
It is supposed that after the complete end of construction works in a campus about 25 thousand employees of the company will be able to work. By the beginning of 2019 the number of staff of Huawei in Dunguane's campus is about 17 thousand people as the bulk of employees – up to 50 thousand people – works in Shenzhen located in 90 km to the south from Dongguan.
By the beginning of 2019 several thousands of employees of Huawei already got over in a new campus. These are generally the personnel which are engaged in research and development.
Arrest of the top manager of the Polish office on suspicion of espionage for benefit of China
Registration of 5405 patent requests
According to data the All-Russian Intellectual Property Organization (ARIPO), at the end of 2018 the Chinese company Huawei Technologies registered 5405 patent requests.
Entry into the three of the largest buyers of chips
On February 4, 2019 the Gartner research company provided the rating of the largest buyers of chips. Apple and Samsung remained leaders, and Huawei for the first time entered in top-3. The Chinese company increased semiconductor purchases in 2018 more than by 45% that allowed it to outstrip Dell and Lenovo. Read more here.
Nokia and Ericsson lose Huawei, despite problems of the Chinese company
At the end of December, 2018 it became known that competitors have Huawei — Ericsson and Nokia — it is impossible to use failures of the Chinese company for strengthening of positions in the market and development of the advanced telecommunication equipment. In more detail about it here.
Huawei fined and demoted employees for the message on Twitter via iPhone
At the beginning of January, 2019 it became known that Huawei Technologies fined two employees for sending the message to Twitter by means of iPhone.
On December 31, 2018 at 11:31 a.m. on official Twitter blog of Huawei the congratulation happy New Year which was sent via iPhone was published — the corresponding mark is placed in the lower right corner in social network. Though the message was deleted rather quickly, it was noticed by users, and the made screenshots became proofs.
Then the Chinese media distributed the internal disciplinary e-mail sent to the staff of Huawei. In it it is said that two employees of the company involved in the publication of the public message via iPhone were lowered in positions on one level. Besides, Huawei reduced them monthly salary by 5 thousand yuans (about 50,500 rubles).
The company reported that "because of a problem with the Internet through VPN" the command which is responsible for digital marketing could not send a New Year's tweet in time via the computer therefore iPhone with the SIM card of the Hong Kong operator was used.
|Imperfect management, irresponsibility of some employees and insufficient control of suppliers resulted in adverse result outside the company, said in the letter signed by the board member of Huawei Chen Lifang.|
As notes the South China Morning Post edition, the Huawei company is not the only large producer of smartphones who was convicted of use of devices of competitors for mailing of messages on Twitter: for example, Samsung several times did the same in the past.
The Chinese companies declared boycott of iPhone as a sign of support of Huawei
In December, 2018 it became known of boycott which the Chinese companies declared iPhone as a sign of support of Huawei. Some enterprises and the organizations compensate to the employees a part of purchase of the Huawei smartphones and inflict strict sanctions for acquisition of the Apple phones. Read more here.
Samsung sees chance to increase a share in the market of a 5G equipment in failures of Huawei
In December, 2018 Samsung Electronics hoped for an exit of the company from among outsiders of the market of telecommunication equipment due to failures of Huawei. Problems which are endured by the Chinese producer, on a hand of the South Korean company in anticipation of mass start of networks of fifth generation (5G). Read more here.
Arrest of the daughter of the head of Huawei at the request of the American authorities
At the beginning of December, 2018 Wanzhou Maine was arrested at the request of the USA. The American authorities suspect the daughter of the founder of Huawei Ren Zhengfei and the chief financial officer of the company of violation of sanctions of the USA against Iran. Read more here.
Deliveries of 10 thousand base stations of a 5G worldwide
The Huawei company delivered to the partners more than 10 thousand base stations of a 5G worldwide. It at the Huawei Mobile Broadband Forum conference in London was announced on November 20 by the chairman of the board of Huawei Ken Hu.
|154 mobile operators in 66 countries and regions test communication of fifth generation of a 5G worldwide. Huawei delivered more than 10 thousand base stations of a 5G to the clients — the Chinese edition Global Times quotes Ken Hou.|
On the same action Ryan Ding, the head of department of Huawei Carrier Business Group, reported that the company signed 22 commercial delivery contracts of the equipment for mobile networks 5G, Telecompaper tells.
According to the top manager, transition to the new standard is stimulated by the large countries with the big population. They aim first to master advanced technology on which migration will take place quicker, than it was with 3G or 4G, Dean added.
Though in Huawei say real demand of a 5G and that the technology is ready to use, the company warns about the barriers interfering implementation of the new standard. In particular, in Huawei noted the shortage of frequency range for mobile operators.
To accelerate deployment of a 5G networks, the chairman of the board of Huawei recommended to the governments to approve and select more quickly 5G frequency ranges, setting cost below, than for standard 4G. According to Ken Hou, operators already should begin to use C-range, however finally other frequencies, including 2.3 GHz and 2.6 GHz also will be used for a 5G.
Also the representative of Huawei added that the authorities should promote construction of new infrastructure and more actively to work in respect of selection of platforms under these purposes. Among measures which will help to reduce monetary and time expenditure of operators, at the same time opening utility companies new sources of revenue, Ken Hou called sharing of housing and public utilities infrastructure, such as roofs of buildings and a mast of lighting.
Huawei built in mobile data center Audi Q7
In October, 2018 Huawei and Audis announced joint work over unmanned vehicles. Within this cooperation the mobile data center (Mobile Data Center) developed by the Chinese company was integrated into the Audi Q7 crossover for implementation of functions of autonomous driving in the urban environment. Read more here.
As Huawei interfered with merge of Qualcomm and Broadcom
In March, 2018 the president USA Donald Trump blocked potential sale of the American producer of microprocessors Qualcomm of the Singapore company Broadcom for $117 billion. The Bloomberg agency found in Huawei of the reason of failure of this transaction.
Trump blocked merge of Qualcomm and Broadcom according to the recommendation of Committee on the foreign investments in the USA (CFIUS) which estimates each large acquisition. Department saw threat of national security in the transaction and did not begin to offer further explanations about it.
Reuters notes that in case of sale of Qualcomm of Broadcom company there would be a third largest semiconductor producer leading on sales of chips for smartphones, automobile electronics and industrial Internet of Things. More important the fact that the transaction will undermine leadership of Qualcomm in the field of technologies 5G, having allowed Huawei to become the dominating company here, writes the South China Morning Post edition.
According to Bloomberg, in CFIUS were afraid that consolidation of Qualcomm and Broadcom will limit investments of the USA into semiconductor and wireless technologies therefore advantage will be got by such rather opaque company as Huawei which spends billions of dollars in development of the wireless systems of new generation. Huawei starts working twice more, than Broadcom and Qualcomm combined therefore it is able to afford itself huge investments.
Bloomberg notes that Huawei which infrequently buys the companies directly did not influence the transaction between Broadcom and Qualcomm in any way, but the growing influence of the Chinese vendor on the markets had the indirect and defining impact.
The committee on the foreign investments in the USA is probably concerned by the fact that Broadcom will cut down expenses on research and development in Qualcomm that suit Huawei especially as the competing Ericsson and Nokia faced problems because of falling of telecom industry.
The American authorities try to reduce presence in the country of Huawei and other Chinese producers of the telecom equipment long ago, recommending, and in certain cases and directly prohibiting the companies and state agencies to use products of these companies. In 2018 the American operators refused to sell the Huawei smartphones.
Huawei uses Broadcom chips in switches and other network equipment. Qualcomm also cooperates with Huawei: in February, 2018 partners completed testing of the technology accelerating providing mobile services in 5G networks.
Huawei owns the tenth part of the fundamental patents connected with a 5G and is going to begin commercial operation of networks of fifth generation by 2020. Moreover, in March, 2018 the minister of information technologies of the People's Republic of China said that the company prepares for development of technologies 6G.
|Now Huawei became not the just leading supplier on the largest the market of telecommunication equipment, but also the dominating player on the planet — Bloomberg writes.|
Active participation and the leading positions of Huawei in development of technologies of fifth generation can force to buy mobile operators the advanced equipment from this company that is not wanted to be allowed in the White House. U.S. authorities spoke about close ties of Huawei with the government of China more than once that, according to them, represents threat of national security of America.
The Trump's decree on blocking of merge of Qualcomm and Broadcom confirms a hard line of the president concerning transactions, so far as concerns capture of the American technologies. The head of states let know that he intends to limit trade with China and the conclusion of different contracts with the Chinese business.
Failure of the transaction with AT&T
The American mobile operator AT&T cancelled in January, 2018 the arrangement with Huawei on sale of smartphones of the Chinese producer through the networks in the USA at the last minute. As a cause of failure AT&T from the transaction the bill imposing ban on use by state bodies and departments of the equipment and services of the Chinese companies Huawei and ZTE served.
The document was prepared by the congressman from Republican Party Mike Conaway and received the name "Law on Protection of Government Communications of the USA" (Defending U.S. Government Communications Act). Posted the message in which claims that products of Huawei and ZTE represent threat of national security of the USA on the website Konauey. It also gives a position of Permanent special U.S. House Committee on investigation (HPSCI) according to which Huawei can share information obtained from the American users with the Chinese government.
According to the The Information edition, prospecting committees of the Senate and the House of Representatives to the Federal commission on communication (FCC) of the USA in December, 2017 really sent letters as which, in particular, affirmed that the equipment of Huawei can be security risk of the USA if the Chinese company will cooperate with the American mobile operators.
In 2012 in the report submitted to the American parliament the question of a possibility of the state espionage was already brought up from China using the equipment of Huawei. As result, products of Huawei it became available in the USA only through online stores and not numerous physical sales points. At the expense of the transaction with AT&T the Chinese company expected to sell the plans for gaining new positions in the market of smartphones. Its sudden canceling can complicate a task for Huawei.
Also the Verizon mobile operator intended to sign the similar agreement with the company, however also refused the transaction.
Contracts for creation 60 of "smart cities"
Within the Smart City Expo World Congress 2017 exhibition which is taking place in Barcelona from November 14 to November 16, 2017 the Huawei company presented a number of solutions for implementation of the concept of "the smart city". Also was contracts for implementation of such technologies in 60 cities of the world are signed.
The solution of "the smart city" is a system which includes design, integration, transactions, service applications and infrastructure of the information and communication technologies (ICT).
The cities use the advanced ICT for determination, the analysis and consolidation of basic data of city services and management systems, for ensuring different requirements of management, municipal services and business. The concept of "the smart city" of Huawei integrates cloud computing, a network architecture and also ensures safety.
According to the statement of the company, by 2025 27 megalopolises with the population of 10 million people will create huge load of the systems of public transport, medical care and also municipal services and power supply systems.
"The smart cities" are capable to change a method of functioning of the cities, having provided close interaction between digital technologies and the physical systems.
The technical director of Huawei Joe So at a briefing told on November 14, 2017 that in 2016 the company spent 4 billion dollars for implementation of the project.
|In the smart cities a set of objects will be equipped with sensors, to have Internet access, and the "smart" systems will help to make decisions and to react quickly to a situation that will help to increase efficiency of city services and quality of life of the population — the president of Huawei Enterprise Business Group Yan Lida says. — Unique technologies and vision of the innovative solutions of ICT include the whole range of the devices capable to provide the complete solution of the "smart city" adapted for specific needs.|
Cooperation with GridGain and ISS
On September 15, 2017 the Huawei company signed the memorandum of understanding with GridGain Systems companies, the developer of the advanced integration distributed systems, and ISS - Intelligent Systems of Security. Cooperation will be carried out based on Open Lab in Moscow which will open in November, 2017.
Partnership with GridGain
Main goal of cooperation of Huawei with GridGain Systems — a customer support of the financial sector, the government and large enterprises therefore joint development of solutions in the sector of financial services, city security, the transport industry and power is supposed. GridGain Systems offers the computing In-Memory platform with data processing in RAM constructed on Apache Ignite allowing to process large volumes of data in RAM of the computer. The GridGain In-Memory Computing Platform platform solves the current problems connected with fast and Big Data. Partnership will allow Huawei to cooperate with the company in the field of joint development of solutions, being guided by the industries of financial technologies, power and the government organizations.
Partnership with ISS
In turn, partnership of Huawei and ISS is focused on acceleration of digital transformation of the state institutes and the different industries of business. Joint activity of the companies will be directed to creation and support of integrated solutions for Bezopasny gorod agrarian and industrial Complex, including traffic security, and objects of transport infrastructure. These solutions will give to users all opportunities of modern technologies among which: public, private and hybrid cloud solutions (including cloud video surveillance and the intellectual video analysis), the multi-profile situational centers, mobile means of protection of an order, etc. It is expected that optimization of accomplishment of strategic and operational problems of ensuring public security at the level of federal and municipal entities will become result.
As Cao Chong explained, the director of Huawei Enterprise Business Group in Russia, Open Lab is the global platform for work with local partners representing a combination of four functions: joint innovation center, center of technical support, center of verification and center of impressions. The company intends to place emphasis on the cooperation with partners allowing to provide the industries the advanced technological solutions. So, Huawei and technology partners of the company will have an opportunity to carry out joint developments and marketing actions and also to conduct cooperation in output area of products on the market.
Huawei already opened similar laboratories to Suzhou (China), Munich (Germany), Mexico City (Mexico), Singapore and Dubai (UAE). The company is focused on localization according to requirements of local clients for effective development and deployment.
Creation of the uniform affiliate program
On September 7, 2017 Huawei announced the uniform affiliate program and called the investment volume into it. Also the company announced increase in number of the research laboratories developed with assistance of partners.
In October, 2017 instead of several affiliate programs scattered on divisions of Huawei one Huawei Solution Partner Program will begin to operate. All current partners of the Chinese producer, including independent sellers of the software (ISP) and the equipment, system integrators and suppliers of consulting services will be connected to it.
Simplification of interaction of Huawei with partners that those could satisfy better customer needs will become the purpose of innovations, differentiate the solutions and develop business.
|New Huawei Solution Partner Program will simplify work of partners with Huawei and creation of the innovative specifically focused solutions which will bring to clients satisfaction and success in business, said in the statement of the Chinese company.|
In the new affiliate program it is going to invest $250 million. About $70 million will go for development and marketing promotion of products together with partners.
More than 1000 partners who helped to create over 100 solutions for Huawei Marketplace shop participated in the previous programs. With start of Huawei Solution Partner Program sorting of products in Huawei Marketplace becomes simpler that will allow clients to look for the necessary solutions quicker.
Besides, Huawei will facilitate process of obtaining certificates by partners. They will be able to join more simply OpenLab laboratories — specialized platforms on which the companies cooperating with Huawei create and test the localized solutions for telecommunication and corporate customers.
By the beginning of September, 2017 16 platforms OpenLab located in the different countries work. Huawei is going to bring this quantity to 24 by 2020.
Structure of the company
As of the beginning of April, 2017 the structure of business of Huawei consists of three main divisions:
- Carrier Business Group (telecommunication equipment and services);
- Enterprise Business Group (servers, DWH and different IT solutions);
- By Huawei Consumer Business Group (CBG) — it was created in 2003 and offers mobile phones, mobile broadband (MBB) devices and devices for the house.
- Cloud division
Creation of cloud division
In April, 2017 Huawei announced restructuring within which the new division — cloud was created. The Chinese company intends to make the worthy competition to the famous suppliers of public cloud services.
As a result of change of structure of business of Huawei increased the number of divisions from three to four. Enterprise Business Group (servers, DWH and different IT solutions), Consumer Business Group (consumer products) are about new cloud division, Carrier Business Group (telecommunication equipment and services).
Huawei is going to hire in 2017 more than 2 thousand employees for cloud business. Besides, the company sets the purpose on increase in competitive level in fight against market leaders.
|The competition of AWS and Microsoft and simultaneous operation to them in the market — I think that we will observe such trend — the CEO of Huawei Eric Xu in a conversation with analysts in the company headquarters said.|
According to the head, in 2017 Huawei will focus on public clouds and creation of the corresponding "open reliable platform" which will form the basis of the services developed by the company as independently, and in partnership with operators.
The president of cloud division of Huawei Zheng Yelai said that the company will be able to outstrip Alibaba — the supplier of cloud services, largest in the People's Republic of China. At the same time the top manager did not sound any terms.
Earlier the producer spoke about plans to invest $1 billion in cloud business and predicted increase in revenue in the market to 10 billion yuans ($1.4 billion) by 2020. On April 10, 2017 the Ministry of the industry and information technologies of China unveiled the three-year plan according to which the volume of the national market of cloud computing by 2019 should increase to 430 billion yuans ($63.3 billion) from 150 billion yuans in the 2015th.
Huawei failed the sales plan of smartphones
At the end February, 2017 the management of Huawei warned employees about dismissals after the company failed tasks in the market of smartphones. The Chinese vendor stakes not on the number of the sold devices, and on profitability of telephone business.
As the head of division of Huawei Consumer Business Group (is responsible for development and sales of smartphones and brings the companies about a third of turnover) Richard told Reuters agency Yu (Richard Yu), in 2016 the company did not implement the profit plan of mobile business though revenue appeared above forecasts. In 2016 Huawei implemented about 139 million smartphones that fell short of the planned 140 million devices a little.
|This business remains profitable, however the margin in it is very small — Richard Yu. noted.|
The founder and the head of Huawei Group Ren Zhengfei sent to employees the message in which urged them to work more diligently, otherwise, according to him, the company can "collapse".
|Healthy men at the age of 30 years which do not try and only want to count money in a bed, think it perhaps? Huawei will not pay those who does not work hard — said Zhengfei.|
By the end of February, 2017 the staff of Huawei totals about 170 thousand people. 45% from them are engaged in research and development, and they treat the most part of personnel which is not protected from dismissals.
|All are nervous. Now all of us think of further steps more often, considering that full-time employment in the company is not provided any more — one of software engineers of division Huawei Consumer Business Group told Reuters.|
Edition sources in Huawei say that the company saved a 5 percent annual quota for dismissal of workers with bad productivity of work, but at the same time it pushes such employees to leaving, transferring them to undesirable positions. The press service of Huawei assured Reuters that the company has no plan for reduction of number of staff.
According to Richard Yu, in 2017 Huawei will be engaged in increase in efficiency and profitability of business, "paying attention to each level of the organization, each employee and each part" more strictly to control expenses and risks.
Investments into RnD
Story about commitment of employees
At the beginning of December, 2016 the The Wall Street Journal (WSJ) newspaper published article in which it is told about high commitment of staff of Huawei who are even ready to risk life for the good of the company. This moral substance also became one of the main factors of success of the Chinese producer of telecommunication equipment and mobile devices.
WSJ writes that the founder and the president of Huawei Ren Zhengfei imparted philosophy at which many employees are ready to offer a holiday in the company, to refuse payment for overtime work, and sometimes and to risk the life.
|Having won, we together give a toast to celebrate it. Having lost, we risk life to save each other, said in the motivating essay Wren Zhenfey which is read by all new staff of Huawei.|
Huawei motivates the workers with the agreement allowing to receive a share in the company for devoted work. Huawei is not the public company and belongs to heads and other employees. By the beginning of December, 2016 in Huawei about 170 thousand people work worldwide.
|If you completely devote yourself to the company, it will not bring you — one of new employees of Huawei Maine Meng Bo told the edition.|
According to the chief executive of Huawei Guo Ping, Wren Zhenfey remains the spiritual leader and still plays the most important role in development of the general values. Influence of the founder on the company really remains strong: its messages distributed in internal network are read by many employees, and some heads even pass test for Zhenfey's knowledge, WSJ notes.
High commitment of staff of Huawei is reflected in the book under the name Huawei Story. In it, in particular, it is told about how employees of the company built networks in Siberia at hard frosts as lived in Spartan conditions in hostels of Germany as, risking the life, they continued to work in Africa despite the outbreak of fever Ebola.
Joint laboratory Commvault and Huawei on development of solutions for data protection, data management and cloud services
In September, 2016 Commvault and Huawei announced creation of joint laboratory to Chengdu, China. The laboratory will develop solutions in the field of backup, recovery and archiving of data and also the cloud solutions based on technologies of both companies. Commvault and Huawei will select employees, the software, and the equipment for laboratory in which the centers of testing and development and also a briefing center for heads will be organized. The laboratory will be engaged in ensuring full compatibility between fresh releases of both companies. Also it will be focused on creation, testing and demonstration of solutions for cloud backup, development of solutions on the Data Protection-as-a-Service model and other innovation directions which expand possibilities of both companies.
The joint laboratory will strengthen cooperation between Huawei and Commvault, the foundation for which it was laid three years ago when Huawei began to distribute the software of Commvault together with Huawei OceanStor storage systems. After that Huawei and Commvault cooperated for creation of the integrated offer with package service agreements. Recently, Huawei and Commvault began to cooperate according to offers of Huawei Cloud Data Center. Clients apprehended results of cooperation of two companies extremely positively. For example, Brennan IT announced recently that they use the software of Commvault and Huawei OceanStor for providing the scalable and flexible BaaS-solution (Backup-as-a-Service) to the Australian clients.
Field test of a 5G
Testing a 5G on location, Huawei and Vodafone strove for peak data transmission of 20 Gbps during field test of the telecommunication standard in frequency range E (from 60 to 90 GHz) in Nyyubury (Great Britain).
Testing was undergone single-user (SU-MIMO) and multi-user (MU-MIMO) a multichannel input and output, shown the speed of 20 Gbps and 10 Gbps respectively.
Upon termination of tests the CEO of Huawei Eric Xu promised that the 5G will be able to include in the general communication network all "smart" devices invented by mankind and also not invented yet. The technical director of Vodafone Joan Vayberg (Johan Wibergh) added that the following tests will be carried out over broadband mobile communication of a 5G in the range over 6 GHz.
Huawei and Vodafone concluded ten-year partnership which purpose — joint development of network technologies. Recently partners finished tests of narrow-band Internet of Things in Melbourne, Australia. In April, 2016 the companies opened joint laboratory in Nyyubury, in it researches of Internet of Things and the related applications and technologies are conducted.
Growth of corporate business by 44% to $4.25 billion
On March 14, 2016 the president of Huawei Enterprise Yan Lida announced strong revenue growth of its division that it is connected with the conclusion the company of large contracts abroad, The Wall Street Journal (WSJ) tells.
According to Lida, in 2015 Huawei Enterprise revenue (sells network equipment to corporate clients) made $4.25 billion, having increased by 43.8% in comparison with previous year, and growth rates of corporate business of the company in China were for the first time lower, than outside the house market.
WSJ notes, Huawei shows especially strong growth in Europe due to cooperation with such to clients as Deutsche Telekom, Deutsche Bahn, SAP and Banco Santander. For Deutsche Telekom, for example, the Chinese vendor supplies the equipment allowing telecommunication giant to compete successfully in the market of cloud services.
Jan Lida reported that Huawei Enterprise feels confident in the European market, and achievement of similar success in the USA will require some time. According to the top manager, in 2016 the number of the employees of Huawei working at the American market will be increased.
During the interview of WSJ Jan Lid also said that he is not concerned by deceleration of growth rates of the Chinese market as expenses on IT will grow all the same here.
|Our business in China saves continuous growth. The Chinese economy is in process of conversions so injections in the local industry of information and communication technologies still increase. As the traditional companies need to be more competitive in China, the need for the growing investments into ICT will remain — the head of Huawei Enterprise said.|
On the journalist's question of whether the corporate division will be able to become the largest business of Huawei, Jan Lida told the following:
|Perhaps, once it will occur, but I do not know whether there will be I here at this moment. Corporate business differs from consumer.|
Investments into cloud business
On October 19, 2015 Huawei announced plans to spend $1 billion for support of developers of information and communication technologies. The main objective of this financing — increase in attractiveness of cloud services among clients of the Chinese company.
The amount of $1 billion stated above will go, in particular, for joint development of software, rendering technical support services, carrying out training courses, etc. First of all Huawei pursues the aim on promoting of cloud services among the companies using infrastructure of vendor.
So, telecommunication operators and banks, whose data are stored in data centers of Huawei, will receive from the Chinese producer the software for creation of proprietary applications and any support connected, for example, with data analysis and information security.
Huawei will help developers to create new services and to react quickly to requirements of business clients. For this purpose the company will open access to a number of the technologies, such as cloud computing, Big Data, Internet of Things, mobile broadband access, the program configured networks, etc.
Huawei will create the open platform and remote development centers for developers and also will hold the training events thanks to which developers will gain more knowledge in the R&D area, sales and distribution of software. Will closely cooperate with some developers Huawei.
At the expense of a new initiative of Huawei hopes to strengthen the positions in the cloud market which volume in China in 2013 was $1.5 billion, and by 2020 increase in this indicator up to $20 billion is expected (the forecast from analysts of Bain & Co.).
Huawei does not open a share of sales returns of the equipment and services for cloud computing in total revenue. The company only notes that it is about a small indicator, however this business to become capable the main source of growth of Huawei. The vendor is going to achieve sales of cloud solutions in the amount of $10 billion by 2020.
Huawei considers the European market the second house
On July 17, 2015 Huawei told about development of the European business against the background of difficulties which this company in the USA on an equal basis with other Chinese producers met. According to the director of strategic marketing of Huawei William Xu, the company feels in Europe almost like at home.
"Europe is the open friendly place which becomes similar to our second house market more and more" — the The Wall Street Journal edition quotes the top manager.
In the first half of 2015 of Huawei signed 15 partnership agreements with the European companies that almost corresponds to the number of such transactions for all 2014. Cooperation with the European business concerns different areas — from cloud data storage and telecommunication equipment to automobile technologies and solutions in the field of information security. Among large partners Huawei there are a telecommunication giant Deutsche Telekom, the producer of corporate software of SAP and the Munich organization of application studies Fraunhofer-Gesellschaft which participated in development of MP3 standard.
Europe takes the central place in the international expansion of Huawei. As William Xu in the interview published on July 17, 2015 for the last two-three years noted the Chinese company increased number of partner communications with the leading European companies and also invested in local research centers much.
At the beginning of June, 2015 Huawei in cooperation with the German auto giant Volkswagen submitted a complex of the applications providing connection of smartphones of the Chinese brand to the information and entertaining systems of machines of concern. Thanks to these programs drivers can safely use phones (to reproduce music, to make phone calls, to send messages, etc.) during driving driving. Besides, within cooperation of Huawei provided the bonus Audi Q7 SUV with the superfast Internet on LTE technology.
The high activity of Huawei in Europe is partly connected with impossibility of the Chinese producers to develop in the American market because of political differences between Beijing and Washington. Earlier U.S. authorities called the equipment of Huawei and some other vendors from Celestial Empire threat of national security and limited work of these companies in the country. Any of four largest American mobile operators does not use solutions of Huawei.
Meanwhile, the American market is not completely closed for Huawei. The company sells there the smartphones which, however, are in the flat demand among locals. According to the estimates of analysts of IDC for the first quarter 2015, Huawei also 1% is only in the 13th place in the list of the largest sellers of smartphones in the USA with the market share which is not reaching. In January-March, 2015 the quantity of the tubes which are released on the American market under the name of Huawei was measured by only 110 thousand units. At world level Huawei takes the fourth place among producers, having 5.2% of sales of smartphones in an asset, data of IDC for the first three months 2015 demonstrate.
Cloud cooperation with Intel
On March 5, 2015 Huawei announced strategic cooperation with Intel within which the companies will provide cloud solutions to telecom operators worldwide. This IT agreement between producers was not the first.
Will be engaged in joint efforts of Huawei and Intel in development of the scaled, optimized and cost-efficient software platforms and the equipment (servers, storages, etc.) for telecommunication companies. Those will use solutions of Huawei and Intel for deployment of public cloud services. In fact it is about formation of the global cloud computer network for operator needs.
Intel and Huawei will start a global cloud network
Besides, it is going to improve performance and security of a cloud platform of Huawei FusionSphere due to use of architecture and technologies of Intel, including Open vSwitch and DPDK (Data Plane Development Kit). Thanks to it virtualization of networks on platforms of Huawei will be improved, and operators will receive a reliable cloud solution which will increase effective management of infrastructure and will reduce costs.
"This industry cooperation will contribute to the development of the innovations connected with implementation of clouds by telecommunication operators. Joint Huawei and Intel development of new generation of the products FusionSphere will allow to start operators high-performance, safe and flexible cloud services" — the vice president and the general manager of division of cloud platforms of Intel Jason Waxman (Jason Waxman) reported.
It should be noted that by the time of agreement signature about creation of a global cloud network for Intel and Huawei operators several contracts, signed by the companies earlier already had. So, in 2012 producers began to work on new scalable solutions for data storage on architecture of Intel, and two years later Intel and Huawei announced cooperation in the market of servers and cloud products.
2013: Huawei publicly refused the market of the USA
Huawei Technologies does not wish to sell telecommunication equipment in the market of the USA any more and is going to be focused on other countries. It at an annual meeting with analysts was announced in April, 2013 by the executive vice president of the company Eric Xu. "We are not interested in the market of the USA any more", - tells his words Financial Times.
"Do not misunderstand us, - the executive technical director of Huawei Li Sanqi explained in an interview to the IDG agency. - We would like to be present at the American market. But today we faced reality. We will be focused on the rest of the world which is rather big, and grows enough in high gear".
The Quartz edition which one of the first published the statement, explained that in Huawei, apparently, came to a conclusion that it is simpler to leave the USA, than further unsuccessfully to be engaged in lobbying for benefit of the products that will hardly ever result in essential results.
The statement followed charges of the U.S. Government that the equipment of Huawei is a trojan horse using whom China trades in espionage. In addition to Huawei, the ZTE company became the White House objectionable.
"Being based on available information, we cannot recognize Huawei and ZTE the equipment suppliers free from influence of government institutions. In this connection we should draw a conclusion that they pose a threat of the USA and to our systems", said in the joint report of the member of Dutch Ruppersberger and the republican Mike Rogers, the chairman of Standing prospecting committee at the U.S. House of Representatives.
Believe in the companies that U.S. authorities suited the farce to expel Huawei from the market and to release it for local equipment manufacturers of communication.
In July, 2013 the government of Great Britain stated that it studies the measures for security provided by the Cyber Security Evaluations Centre center known as "Cell", in the light of the report of Committee on investigation and security (ISC) in June which found out serious problems in how Cell worked. This center was created in 2010 and was financed by Huawei company within the agreement between Huawei and British Telecom of 2005 connected with the state order. All personnel of Cell, except for the head of the center, the former associate director of Management of government communication of Great Britain, came from Huawei.
BBC quoted the words of the representative of the Secretariat of the Cabinet which stated that the government takes seriously threats to the major infrastructure of national security and has reliable procedures to provide confidence in security of telecommunication networks of Great Britain.
Plans of creation of the center of researches in Helsinki
On December 10, 2012 Huawei announced that it invests 70 million euros within five years for creation of a research and development center in Helsinki (Finland). The strategic investments confirm long-term plans of development of Huawei in the European market, and are designed to strengthen the research capacity of the company, having increased number of the employees occupied in the R&D area worldwide.
For December, 2012 in Huawei 76,000 people are engaged in research and development. The company works 31 joint centers of innovations and 16 R&D-центров.
At this time at the European offices Huawei more than 7000 people from the total number of 170,000 employees of corporation work.
The research center in Finland will become the key center of the company in the field of researches and development of new technologies for mobile devices. The first projects will be concentrated on development of the software for smartphones, tablets and multimedia devices. The main attention will be directed to improvement of quality of interaction of the user with operating systems, such as Android and Windows Phone 8. From the moment of opening of the center in it 30 people will work, within five years their number will increase up to 100.
"We consider a crucial element of creation of own brand reliability and a variety of services for the end user, - Kenneth Fredriksen, the vice president of Huawei in Central, Eastern and Northern Europe noted. - The open and innovation environment of Finland is the perfect place for strengthening of our research opportunities in the field of mobile devices, creating opportunities both for Huawei, and for telecom industry of Finland".
R&D-центр in Helsinki will become one of the key research centers of the company in the field of mobile devices, along with the existing centers of technology design in Sweden and the center of researches of the user interface in the United Kingdom.
Investments into development in the market of Great Britain
In September, 2012 Huawei announced investments of 2 billion dollars in size into research and development, local purchases and creation of Competence Centers in the United Kingdom.
2011: The legal claim against ZTE
The company Huawei submitted in April, 2011 legal claims in Germany, Franciums and Hungary against ZTE Corporation (ZTE) in connection with violation of rights to patent and use of a trademark. Claims are submitted on the basis of the fact that ZTE violated the rights to a number of the patents of Huawei connected with cards of data transmission and LTE technologies. Also, according to Huawei, ZTE illegally used the registered trademark of Huawei on some terminal products.
The director of Huawei of legal issues Song Liuping explained: "Huawei was forced to begin these actions for the purpose of protection of our innovations and the registered intellectual property in Europe. Our purpose is suppression of illegal use of intellectual property of Huawei. We would like to reach the agreement with ZTE, but at the same time to achieve legal use of our technologies".
These claims were made after ZTE did not react to letters warnings with the requirement of the termination of illegal actions for intellectual property. As reported, Huawei also repeatedly invited ZTE to negotiations on the cross-patent license, but these efforts also were unsuccessful. As Huawei did not receive any answer or the comment from ZTE about the termination of illegal actions, the company had no other exit except how to use legal means on protection of the legitimate interests, explain in the company.
It is noted that in 2010 Huawei spent $222 million for patent licenses for obtaining legitimate rights of use of patents and technologies of other leading companies in the industry. Huawei also invests a considerable part of the annual income in research and development. Costs for Research and Development only in 2010 made 16.556 billion Chinese yuans ($2.5 billion).
"The intellectual property is the most valuable asset for Huawei. As we bear responsibility to our customers and shareholders, we consider it necessary to protect these assets with any legal means worldwide. Wherever there was a violation, we will do all necessary to guarantee use of intellectual property of Huawei by any company based on recognized international laws and the practician" - Sung Lyupin emphasized.
2010: Start of the direction of corporate solutions with staff of 10 thousand people
The company in 2010 opened the direction of corporate solutions and intends to pay the maximum attention to development of this division which provides to corporate customers network infrastructure of the fixed and mobile communication, data processing centers and "cloud computing". In the continuous advance Huawei aims to become the supplier of the integrated complete infocommunication solutions to bring the maximum benefit to our clients. The new structure in which each Huawei business division will be independently controlled is for this purpose created, and the general control will be exercised by the president of the company and Board of Directors.
In the staff of division of Huawei Enterprise Business Group responsible for development and delivery of products to the enterprises of the different industries and also state structures, 10 thousand people, 6 thousand from them are busy with Research and Development.
1987: Foundation of the company
The Huawei company was founded in 1987.
Development strategy Huawei Technologies
Huawei sees a possibility of creation of more comfortable world of communication through development of key technologies among which:
- Artificial intelligence (from program to the hardware). Complex development of AI, including technologies of perception, recognition and neural calculations for creation of the full-fledged intelligent system integrating program and the hardware and also mobile devices and cloud services. The first smartphone with local AI of Huawei Mate 10 Pro is provided.
- Development of the standard of communication of a 5G. More than 500 engineers and experts of Huawei work on creation of technologies 5G of communication. 9 research centers in different regions are open, there are plans to invest in development of the innovative technologies in the field of communication of a 5G of, at least, 600 million dollars by 2018.
- EMUI. The corporate interface for OS Android realizing philosophy of the company which puts on the first place of the user and his comfort at daily use of the device. The latest version, EMUI 8.0 constructed based on Android™ 8.0 received more intellectual and personalized applications providing a pro-active response to the user's requests. AI Engine was developed specially to connect EMUI and third-party AI of the application with the module of neural calculations of NPU. Different intelligent tools among which there are Vision Engine, Experience Engine, Performance Engine, Power Management Engine and tools for third-party applications enter it. These tools guarantee that all functions using algorithms artificial intelligence, including applications of third-party developers, can fully interact with computing and power advantages of the Kirin 970 processor.
- Security of networks. Huawei considers key corporate strategy ensuring end-to-end information security. The contribution of Huawei in this industry is 5% of all investments. 2% of the specialists working on creation of security technologies work for Huawei.
Research and development
- Following long-term strategy, since 2007 Huawei invests more than 10% of total revenue in research and development.
- In 2016 Huawei invested 14.6% of revenue in research and development.
- Based on in-depth examination of needs of users, Huawei aims to integrate the innovation ideas of the West and rich engineering opportunities of China. Today the company totally invested more than 313 billion yuans (about 45 billion dollars) in research and development.
- Huawei based 15 research and development centers, 36 joint centers of innovations and 45 training centers worldwide. 2 research and development centers are open in Central east and Northern Europe.
- More than 70,000 employees work in the field of research and development worldwide, making more than 45% of the international personnel of Huawei.
- By the number of requests for patents Huawei takes the 2nd place in Europe with 2390 requests. For 2016 the company rose in rating by 2 lines, having submitted nearly 1000 applications, according to the annual report of the European patent office (EPO).
Product portfolio of Huawei
- ↑ Huawei revs up cloud, AI as core business
- ↑ Cambridge local council approves of £1 bn Huawei facility despite security row
- ↑ Huawei denies involvement in buggy Linux kernel patch proposal
- ↑ [https://www.ft.com/content/d0698260-c02b-4abe-912a-fa0066e294c2 Huawei employees sue company after police detention] Jailed Huawei Workers Raised a Forbidden Subject: Iran
- ↑ 
- ↑ Huawei steps up ambitions in self-driving vehicles race
- ↑ Huawei developer conference postponed due to Wuhan coronavirus
- ↑ State Support Helped Fuel Huawei’s Global Rise
- ↑ Vodafone Found Hidden Backdoors in Huawei Equipment
- ↑ Reports Huawei allowed into UK 5G networks draw criticism
- ↑ Inside Huawei’s New, Giant Faux-European Campus
- ↑ Huawei punishes two employees for using iPhone to send official company ‘Happy 2019’ tweet
- ↑ Huawei ships 10,000 5G base stations globally
- ↑ Huawei says over 10,000 5G base stations shipped already
- ↑ The USA is going to prohibit the Huawei and ZTE smartphones legislatively
- ↑ Huawei targets big smart city push
- ↑ $ Huawei invest 250m in global partner program
- ↑ China's Huawei targets Amazon, Alibaba in public cloud service push
- ↑ Huawei staff fear cuts as smartphone profits disappoint
- ↑ Huawei’s Hard-Charging Workplace Culture Drives Growth, Demands Sacrifice
- ↑ 5G network with a speed of 20 Gbit per second is For the first time built
- ↑ Huawei enterprise sales pick up on European boost
- ↑ Huawei Joins Race to Pour Money Into the Cloud
- ↑ Huawei Says Europe Is ‘Like a Second Home Market’
- ↑ Huawei Collaborates with Intel to Deliver Public Cloud Solutions for Global Telecom Carriers
- ↑ CNews