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Huawei Russia of Huawei

Company

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The Russian division of the Chinese company Huawei coordinates work in Russia, Belarus, Armenia and in Ukraine.

Owners:
Huawei

Content

Revenue and profit of the company, Thousand rub

RevenueProfit
201761 700 0001 400 000
2018132 300 0003 350 000
1800 employees in 2015
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Assets

Assets

As of the beginning of 2015 the number of staff of the Russian representative office is about 1800 people. At the company is in the country of 11 offices, apart from the headquarters in Moscow. They are located in St. Petersburg, Ufa, Novosibirsk, Kazan, Krasnoyarsk, Nizhny Novgorod, Samara, Vladivostok, Rostov-on-Don, Yekaterinburg and in Perm. In addition to office, in Moscow at the company are also based research and training center.

In Russia 2 research and development centers, in Moscow and in St. Petersburg work. The Moscow center totals 230 employees working in 7 directions, and in the center opened in 2017 in St. Petersburg 10 3 directions specialists work. Programs and algorithms which are created in these centers expand the capacity of networks and are applied in all solutions of the company.

Performance Indicators

2018: Growth of revenue twice to 132.3 billion rubles

In 2018 the Russian division of Huawei (Huawei Technical Company LLC) registered record revenue which made 132.3 billion rubles. It was measured in the 2017th by 61.7 billion rubles. The net profit of the company during this time jumped up by 2.4 times and reached 3.35 billion rubles.

According to the source RBC close to Huawei, revenues of the company increased thanks to growth in sales of mobile devices. A share of the company in the Russian market of smartphones grew from 11% in 2017 to 20% a year later in kind that allowed Huawei to outstrip Apple and to take the second place on piece sales of tubes. The Chinese vendor conceded only Samsung (data of IDC).

Huawei doubled revenue in Russia thanks to smartphones
Huawei doubled revenue in Russia thanks to smartphones

The interlocutor of RBC in the large Russian retailer says that for all 2018 in Russia about 7.5 million smartphones under brands of Huawei and Honor were sold (Huawei also belongs). The average cost of the device was 13.4 thousand rubles. Proceeding from it,  the company could sell devices for 100 billion rubles.

According to the source editions, all gadgets, including wearable devices, brands of Huawei and Honor retailers buy from Huawei Technical Company LLC. Thus, sale of consumer devices could give to Huawei more than 75% of revenue in Russia.

In "M. of Video Eldorado" say that every fourth smartphone purchased in Russia in 2018 is released under a brand of Huawei or Honor). The retailer has sales of devices of Huawei and Honor grew four times at the expense of widely provided line, joint actions and convenient credit tools, the representative of network told RBC, without having called at the same time revenue size.

Revenue of all Huawei in 2018 reached $105.19 billion or about 6.6 trillion rubles. Thus, about 2% of turnover of corporation were the share of the Russian business. In financial statements of Huawei does not open income in certain countries.[1]

Management

Management in the CIS countries:

  • Van Kesyan is the president of regional department of Huawei on the CIS countries (other CIS countries and Turkey)
  • Aiden (Aiden Wu) have a CEO of Huawei in Russia

Products & Services

Projects of Huawei in Russia
Projects of Huawei in Russia

Partners

History

2019

Agreement with UNN on creation of ICT of Academy

On October 9, 2019 the Huawei company reported that together with National research N.I. Lobachevsky State University of Nizhni Novgorod (UNN) agreed about cooperation in training of specialists on the information and communication technologies (ICT). The agreement on creation based on university of ICT of Academy was signed by the vice rector for public relations Nikita Avralyov, and the deputy CEO of Huawei Enterprise in Russia Alexander Stolyarov. Read more here.

Intention within 5 years to invest 50 million rubles in development of a 5G in Russia

On October 8, 2019 the Huawei company announced that the vice chairman of the board of the company Ken Hou talked with the presentation about a topic accelerations of deployment of 5G networks in the countries of Eurasia.

«
Mister Hou noted: "Technologies 5G began to be used much quicker, than, for example, it happened to 4G. So, 40 operators from 20 countries already started in commercial use of 5G network. 2/3 of these projects are implemented together with Huawei. We are glad to see that Eurasia surely moves towards deployment of a 5G. Especially here, in Russia, chief operators actively work on creation of a precommercial test 5G zones and show real cases of use of technologies of this standard of communication. All of us know that implementation of a 5G is a big and hard work of all market participants. We should meet many difficulties, however, we believe in Huawei that innovations and creation of a uniform ecosystem will allow to accelerate process of commercial start of a 5G".
»

On belief of the representative of Huawei, a 5G will completely change the user experience. The user needs speed.

«
For example, in Moscow in a joint pilot zone of MTS and Huawei showed the unknown speed of downloading – 3.7 Gbit/sec. It is 150 times faster, than the average speed of mobile networks of fourth generation in Russia for October, 2019, - mister Hou emphasized.
»

According to Ken Hou, the 5G will open improbable opportunities for the industries. Use of video of high resolution for rendering remote medical care can be an example of application of a 5G. Huawei believes that this service will help to increase the number of patients and to increase the level of the provided services not only in Moscow or other large cities of Russia, but also beyond their limits.

The vice chairman of the board of Huawei also shared vision on acceleration of deployment of 5G networks in the countries of Eurasia. He noted that at this stage it is important to give to operators the chance to use broader spectrum of frequencies, and in this question players of the industry need support of the governments of the countries. Operators need the help during creation of infrastructure for placement of the equipment – the cost of lease of the websites can exceed a half of cost of all project of deployment of network. As the solution of this problem the government can consider the possibilities of use of objects of state-owned property for installation of the equipment on them. It considerably will accelerate process of deployment of networks. Participants of the industry need to combine efforts for creation of a 5G ecosystem, mister Hou considers.

The expert also emphasized importance of training of qualified specialists and support of innovations in area 5G. He gave the training program starting in 2019 in area 5G for customers, partners and students as an example. A task of the program is training of 10,000 specialists within the next 5 years, and investments of the company into this project will make more than 50 million rubles. According to him, 1500 people took part in Russia, in 2019, in the program.

Failure from substitution in smartphones of Google services applications of "Yandex"

Huawei is not going to substitute in the smartphones Google services with applications of "Yandex". The vice president of division of mobile services Huawei in Europe Jaime Gonzalo told about it in an interview of RIA Novosti at the end of September, 2019.

At the same time he noted that the Chinese company is ready to discuss with "Yandex" preset of its services on devices of Huawei. But about substitution the speech does not go.

Huawei is not going to substitute in the smartphones Google services with applications of \"Yandex\"
Huawei is not going to substitute in the smartphones Google services with applications of "Yandex"
«
We found out that the Russian users prefer to use services of "Yandex" and Mail.ru, and we closely work with these companies. Some applications are a part of our ecosystem — Gonzalo says. — It [preset of the Yandex applications] the fact that we should discuss with partners. If users express such desire, then we will consider such option … We always try to make a start from needs of users and we provide the choice to use those applications which are more convenient to them.
»

According to the top manager of Huawei, earlier phones of the company were already on sale with the preset services of "Yandex", including with " Yandex.navigator ".

As reminds the Prime agency, in August, 2019 the president of division of Huawei Mobile Services and the vice president of Huawei CBG Alex Zhang announced negotiating with "Yandex" concerning implementation of the voice assistant Alice in smartphones of the Chinese company.

According to Chiang, the companies discussed joint work in the field of services of music, the taxi, weather and other projects of "Yandex". Then Mail.ru Group reported that it conducts negotiations on preset of the software on devices of Huawei. Parts in the company were not specified.

Jaime Gonzalo reported to RIA Novosti that the negative impact of prohibition on use of Google services in the Huawei smartphones is exaggerated — in operation of devices especially nothing will exchange.[2][3]

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.

The lease agreement which is signed with "JSC Corporation A. The N of D.", assumes that Huawei will use three floors of a business complex with a total area of 7.5 thousand sq.m. As the broker within this transaction which took place in July, 2019 the Cushman & Wakefield company acted.

It became known of lease of three floors by Huawei company in TDK \"Smolensk Passage-2\"
It became known of lease of three floors by Huawei company in TDK "Smolensk Passage-2"

TDK "The Smolensk Passage — 2" has the total area of 58 thousand square meters. In 100 meters there is a Smolenskaya station of the Arbat and Pokrovsk and Filevsky lines of Moscow Metro.

It is the second large office Huawei in Moscow. The first — 16 thousand sq.m — is located in the Krylatskie Holmy business park. The company rents there. The head office Huawei was located Krylatskie Holmy since 2006. Besides, Huawei rented in 2019 110 jobs in a co-working of SOK.

In August, 2019 the Kommersant newspaper with reference to the sources in the market of a commercial real estate wrote that the company should drive in business quarter Novospassky of the PSN group of Dmitry Ananyev and also conducts negotiations with owners of business center "Smolensk Passage". Huawei claimed in August, 2019 that the company does not plan moving from Krylatskie Holmy.

Huawei looked for the areas for opening of office in addition to Krylatskie Holmy, the area director of department of office real estate of Colliers International Vera Zimenkova said. According to her, Krylatskie Holmy by August, 2019 there was extremely low level of vacant space therefore one more office because of expansion of the state was necessary to look for the companies.

Lease of offices in "the Smolensk Passage-2" became one of the few examples when the foreign IT companies conclude large deals in the Russian real estate market. In 2019 such companies, on the contrary, reduce presence, the director of the department of office real estate of Accent Capital Vladimir Rybakov notes.[4]

Huawei will increase by 4 times number R&D-специалистов in Russia

On August 15, 2019 Huawei announced plans to increase the number of staff of research and development centers (R&D)  in Russia almost by 4 times.

According to Vedomosti with reference to the representative of Huawei, by 2024 it is going to hire 1500 such employees, including 500 until the end of the 2019th. By August, 2019 at the Chinese company is in the Russian Federation two R&D-центра: they are in Moscow and St. Petersburg,  400 and 150 people respectively there work.

Huawei announced plans to increase the number of staff of research and development centers (R&D) in Russia almost by 4 times
Huawei announced plans to increase the number of staff of research and development centers (R&D) in Russia almost by 4 times

Until the end of 2019 Huawei is going to open three more Researches and Development laboratories. In what cities they will be started, is not specified. Tasks in which employees of these centers will be engaged are also unknown.

Huawei intends to cooperate with the Russian scientific communities, the universities and other research centers. According to the representative of the company, thanks to growth of the state Russian R&D-направление Huawei will become the third in the world after Europe and North America.

«
Expansion of local research base will open new jobs for talented scientists who will work on studying of advanced technologies in Russia, at the same time developing the solutions meeting the requirements of the world ICT industry — told RIA Novosti in Huawei.
»

The edition reminds that R&D-центры in Russia such technology companies as Intel, Samsung and Microsoft have.

Huawei continues to develop cooperation with Russia. In the middle of August, 2019 it became known that Mail.ru Group began negotiations on preset of the software on the Huawei smartphones. The speech can go about integration of mail, the messenger, VKontakte social network and other services more than to 1  million smartphones.

Besides, the Chinese company conducts negotiations on integration into the devices of the voice assistant Alice developed by "Yandex".[5]

Cooperation with Southern Federal University for the purpose of development of interaction in the scientific sphere and trainings

On July 31, 2019 it became known that the HUAWEI company and Southern Federal University signed the memorandum of strategic partnership. The ceremony took place in the main building of Southern Federal University in Rostov-on-Don. Read more here.

Opening of national ICT academy together with MTUCI

On July 25, 2019 the Huawei company announced conclusion of an agreement with Moscow Technical University of Informatics and Communications (MTUCI) about opening in Russia to national ICT academy. The document was signed by the rector of MTUCI Sergey Dmitrievich Yerokhin and the vice president of Huawei in Eurasia He Chen. Read more here.

The memorandum from a RANEPA on joint development of educational initiatives

On June 6, 2019 the Huawei company reported that together with the Russian Russian Presidential Academy of National Economy and Public Administration concluded the memorandum of understanding. Read more here.

Purchase "Eagle softlab"

On June 3, 2019 it became known of sale of intellectual property of Vokord company of the Chinese Huawei. The last also received a part of a team of the Russian developer of video surveillance systems. Read more here.

Opening of corporate service centers in St. Petersburg, Novosibirsk and Yekaterinburg

On April 25, 2019 the Huawei company announced official opening of three corporate service centers in St. Petersburg, Novosibirsk and Yekaterinburg integrating in themselves the showroom, the service center and HUAWEI retail store. In showrooms the most relevant products of HUAWEI and HONOR will be provided that will allow users in regions closer to get acquainted with new products of the company and to purchase them right after official start in Russia. The service centers which are conveniently located on the central streets began work on April 22, 2019.

Huawei and Honor service center

In service divisions of the centers users can receive a full range of services in warranty and not warranty repair, including service "express repair" within 45-120 minutes in the presence of spare parts.

In the centers comfortable places for waiting, with a wireless internet for visitors are equipped.

Addresses of customer service centers:

  • St. Petersburg, Ligovsky Avenue, 6/2
  • Novosibirsk, Ordzhonikidze St., 33
  • Yekaterinburg, Malyshev St., 36

In addition to the main multifunction center in Moscow on Tverskaya Street and three regional centers, the HUAWEI company authorized in Russia already more than 70 service centers performing warranty and post warranty repair of smartphones, notebooks, tablets and wearable devices of brands of HUAWEI and HONOR. Besides, the users who are living in the distance from the service centers or just not having opportunities to bring the broken device personally can use service of a courier delivery of devices in the service center and back.

Huawei is going to invest $4 million in the Russian partners

The Huawei company announced on March 22, 2019 the program for work with partners in Russia which basic principles will be "simplicity", "advantage" and "technological effectiveness". In total in 2019 the company is going to invest about $4 million in development of local partners, and to increase the volume of compensations (rebate) three times.

According to the company, for March among corporate clients of Huawei — representatives of the Russian banking and energy sector, 15 federal ministries and 40 regional governments, more than 700 companies of small and medium business. The general number of the organizations using technologies and solutions of Huawei comes nearer to 1000.

Alexander Stolyarov, the deputy CEO of Huawei Enterprise in Russia
«
Huawei continues rapid growth both in the world, and in Russia. Global corporate sales to the company for 2018 increased by 19%. In Russia this indicator reached 39% that allowed the Russian Enterprise-department to win first place outside China the market — Alexander Stolyarov, the deputy CEO of Huawei Enterprise in Russia said. — Partners continue to play a key role in corporate business of Huawei. Being our conductors in the local market, they provide up to 90% of sales. For this reason we give to work with partners so great value: regularly we provide trainings and certification of specialists, we will organize actions and joint marketing projects, actively we invest in regions.
»

For March 22 the number of partners of Huawei in sales in Russia exceeds 800, at the same time the company has also over 20 partners in development of joint solutions, more than 70 service partners, and the number of the certified specialists exceeds 1.5 thousand people.

Huawei changes structure in the region

The Huawei company opened in Moscow office on the region Eurasia. The Russian office will submit to it now. At the same time in regional representative offices in Russia the functional players of employees are changed. Huawei closes six offices in regions of Russia (in Northwest, Far East, Southern, Siberian, Ural and Volga federal districts).

Regional representative offices remain, their structure and functional players of employees is changed. Creation of the Eurasian region due to accession to Russia of 10 divisions working in neighboring countries requires concentration of managerial competences and resources at head office in this connection the structure of the management of regional offices will undergo certain changes. However the main list of employees will continue the work, and it will not influence operational processes and customer interaction in any way, - reported in the press service of the company. - Within general strategy of development of Huawei in Russia the company is going to increase the number of investments in R&D in regions and to open a number of research centers".

The document is signed on March 12, after the visit to Russia of the president of Huawei Ren Zhengfeya.

As reported a source familiar with a situation, Huawei dismisses sellers from regional offices, but engineers remain in the company. "Besides, Huawei is intended to be increased in Russia the number of developers, including in the field of the artificial intelligence (AI). Among the cities where they are going to look for developers - Novosibirsk, Moscow, Tomsk, Nizhny Novgorod", - reported a source[6].

Tele2 and Huawei will cooperate in development of standard 5G

On February 26, 2019 Tele2 reported that they together with Huawei signed the partnership agreement. The document defines opportunities for strategic cooperation in development of a 5G - the focused transport and reference network. Podprbny here.

2018

Huawei will open two additional DPCs in Russia

At the beginning of 2019 Huawei will have in Russia two dopolntelny DPCs which will begin to be based in Moscow. For November, 2018 the company already locates one platform in the capital of our country — approximately on 100 server racks; it opened in April, 2018. Both DPCs should be started in March, 2019. In the first of them about 300 racks will be placed, starting capacities of the second are not determined yet. At the same time both of these platforms are expected 1000 racks everyone. The director of solutions of the Huawei Cloud direction in Russia Artur Pyarn told about it.

As the partner of Huawei in this project the domestic operator of data centers 3data acts. This organization provides to the Chinese company physical platforms, and Huawei brings to them own servers and ports on them the services which clients can use on cloud model.

With 3data partners call exact structure of the relations of Huawei a trade secret. However clients in our country directly interact only with 3data. The operator performs sales and promotion of services, provides the so-called first and second line of technical support, undertakes all questions of execution of transactions and also independently is engaged in licensing of the equipment of DPC and obtaining necessary permissions at local regulators.

«
We have a maternal cloud in China in which all services are started initially. In it for November, 2018 about 110 services of different categories: IaaS, SaaS, PaaS. We select the model of work from each country — through someone or independently. In Russia at us the cloud is started together with 3data, and branding joint.
Artur Pyarn, the director of solutions of the Huawei Cloud direction in Russia
»

According to Artur Pyarn, Russia became the first region outside China at which in a partner public cloud there is a company name of Huawei, and not just the partner — Huawei 3data Cloud. In other countries customers can not know at all that services necessary for them are rendered from Huawei library, on "iron" of this company. As the CEO 3data Ilya Hala explains, in Russia it was decided to involve the name of Huawei because this brand at us in the country is well-known.

Huawei has no plans to work in Russia without intermediaries. And now, if the customer somehow contacts her directly, Huawei transfers him in 3data. The agreement will be signed by the operator of DPCs.

In spite of the fact that Huawei services already exist in China in finished form, deployment of each of them in any country requires enough great efforts — selections of racks, solving of tasks of porting and localization, expenses on a covering of energy costs and so forth Besides, as is told by Artur Pyarn, the organizations in Russia just come to understanding of efficiency of use of these or those cloud services — in the companies there is no sufficient examination yet to work with them.

The unavailability of the Russian organizations to use of a full range of resources of Huawei is confirmed also by Ilya Hala.

«
When we began the project, we asked the Chinese colleagues not to start in Russia all services at once. If to throw out at the same time hundred services, then we will confuse all, nobody will understand. People will not understand why all this. Therefore we agreed to move consistently, and we paint the road map. At first we deployed about 20 services. On porting of any service several weeks are required. We have an accurate diagram of releases. Depending on the interest of clients, we select services and we put them in our following release.
Ilya Hala, CEO 3data
»

At the same time, according to the CEO 3data, most likely in Russia not all services because each regional market has features as a result will be ported.

Let's note what 3data positions itself as network of bonus data centers which in Russia implemented the concept of "DPC of close proximity". As Hala explains, to light in the known limits all the same what distance to overcome on optical fiber. But route length at the same time affects data transmission cost very significantly.

On assurance of the CEO 3data, for most of his clients the average route from their offices to the nearest DPC of the company costs several thousands of rubles a month. To conditional traditional DPCs (on the outskirts of the city or in Moscow area) the communication channel, according to him, will be costs several tens of thousands of rubles.

The second important argument for benefit of dislocation of data centers near potential customers is connected with aspects of psychology of the Russian clients for which, oddly enough, physical availability of platforms[7] is important].

Huawei will open research center in Tatarstan

The Huawei company announced on November 16, 2018 TAdviser signing of the memorandum of cooperation with the Ministry of informatization and communication of the Republic of Tatarstan. The signatures in the document were appended by Zhu Weihua, the vice president for corporate technology cooperation of Huawei, and Roman Shaykhutdinov, the deputy prime minister of the Republic of Tatarstan — the minister of informatization and communication of the Republic of Tatarstan.

Photo: servernews.ru

Within the memorandum of the party intend to consider the possibility of the organization of research laboratory Huawei in the territory of the Republic of Tatarstan and also agreed to hold mutual consultations on exchange of scientific and practical experience.

«
Opening of research laboratory will become an important step for both parties. Now Huawei will not only implement ICT technology in the field of republic economy, but also to develop them together with scientific specialists of the region — commented Zhu Weihua's event, the vice president for corporate technology cooperation of Huawei.
»

«
Our cooperation with Huawei in development of the systems of the safe city, implementation of technology 5G will help us to make breakthrough in digitalization of the region. The research and development center which is going to be opened will help to use the scientific and technical capacity of the republic effectively. Also potential interest of the company in venture investment into the Tatarstan IT projects and solutions pleases — Roman Shaykhutdinov, the deputy prime minister of the Republic of Tatarstan — the minister of informatization and communication of the Republic of Tatarstan said in return.
»

At the same time, the document mentions the whole range of the purposes and tasks promoting exchange of experience in such priority directions as research works in the field of development of modern technologies, attraction to joint research works of the scientific personnel and startups of the Republic of Tatarstan.

In general signing of the memorandum became continuation of cooperation of the parties which began at the end of January, 2018 with conclusion of an agreement of Huawei and the Government of Tatarstan about interaction in the field of implementation of ICT in region various sectors of the economy. At the same time, the event confirms the aspiration of the parties to develop and deepen mutually advantageous work and to promote implementation of joint scientific and educational initiatives in the field of ICT.

The agreement on opening of the partner center in Skolkovo

The Huawei company announced on October 16, 2018 agreement signature about partnership with Skolkovo Foundation. The agreement is aimed at creation of the joint partner center in the territory of the Innovation center "Skolkovo". Read more here.

Cooperation with the Moscow school of management Skolkovo

On October 15, 2018 the Huawei company reported that it signed the agreement with Moscow School of Management Skolkovo. According to the company, the agreement means partnership in the field of modern ICT technologies — including in the field of digital transformation — and cooperation in implementation of joint educational projects. The signatures under the memorandum were appended the vice president of Huawei company in Russia Zhao Lei and Prezident of Moscow School of Management Skolkovo Andrey Sharonov. Read more here.

Apple was inferior to Huawei in the Russian market of smartphones

On September 12, 2018 the Counterpoint Technology Market Research analytical company published some results of a research of the Russian market of smartphones. Judging by data of experts, in the three of the largest producers there were changes — Huawei outstripped Apple. Read more here.

Consolidation of offices in the Krylatskie Holmy business park

The Huawei company broadened the office spaces in Moscow, having rented in total 9.3 thousand sq.m in the business park of the class A "Krylatskie Holmy". On July 12, 2018 reported about it in Cushman & Wakefield company which acted as the exclusive consultant of four transactions of Huawei for lease of office spaces.

Huawei almost by 3 times increased the area of the headquarters in Russia. Photo: cwrussia.ru
Huawei almost by 3 times increased the area of the headquarters in Russia. Photo: cwrussia.ru

According to representatives of the company consultant, need for expansion of the existing office space and consolidation of the Moscow business divisions of the company resulted from the active growth of business of Huawei in Russia. Since 2017 revaluation of the existing lease agreements of different objects of the company and also development of long-term strategy for consolidation of offices Huawei in Moscow and to opening of the first Open Lab laboratory for clients was carried out.

Since 2006 the head office of the IT company was located in one of structures of the Krylatskie Holmy business park and occupied 4,640 sq.m. there. However practically for a year of Huawei increased the office space in BC almost three times, having completed their consolidation in March, 2018. As of July, 2018, Huawei occupies more than 13,000 sq.m in the Krylatskie Holmy business park.

The Krylatskie Holmy business park is built in an environment of the natural and historical Moskvoretsk park. The total area of the business park is 105,000 sq.m, of them leased area — 92,300 sq.m. The Millhouse company acts as the owner of the business park.

Agreement with Sberbank on cooperation in ICT

The Huawei company and Sberbank signed on April 3, 2018 the agreement on cooperation in the field of development of information and communication technologies based on Huawei OpenLab and their further implementation in the bank industry. The companies intend to develop jointly network solutions using the open source. The agreement was signed within official opening of Huawei OpenLab Moscow.

Acting as the platform for joint projects, Huawei OpenLab gives opportunities for development, testing and assessment of the solution and also installation of its demoversion. Within cooperation of the party will give each other the analytical and expert support connected with the current and future projects, to hold the joint events including devoted to the presentation of technologies.

The parties are going to implement joint projects in the following directions: cloud computing for data processing centers, technologies of distributed computing in RAM, perspective software technologies open source, development innovations in the field of chips, software-defined network solutions.

In particular, within the agreement the joint working group which in the short term will start testing of switches with an open equipment room and program architecture for data processing centers was created. According to representatives of Huawei, this direction is one of network technologies, key in the field of development, as allows to optimize management of telecommunication infrastructure and also to lower capital and operating costs.

Opening of a demo center and OpenLab Moscow laboratory

The Huawei company announced on April 3, 2018 OpenLab Moscow opening — a demo center and the laboratory intended for the organization of joint work of engineers of the company and its partners and customers for the purpose of development, customization and testing of new technological solutions. The Moscow OpenLab became the tenth Huawei laboratory in the world. In plans of the company by 2020 to increase the number of the similar centers up to 20, having invested more than $200 million in this global project.

Huawei opened the Russia\'s first OpenLab Moscow
Huawei opened the Russia's first OpenLab Moscow

Main objective of OpenLab is creation of a technology ecosystem within which partners of the company will have an opportunity to use engineering resources of Huawei and also to develop and test corporate solutions on the party of vendor. As of April, it includes 51 Russian companies. With 23 of them active project work is begun, specified in Huawei.

The affiliate program of Huawei OpenLab means receiving remote access to laboratory on the LaaS (Lab-as-a-Service) model. For example, partners can hold integration and testing of cloud data center and industry applications with assistance of engineers of Huawei. In general participation in projects of OpenLab opens access to available resources of vendor.

Among the key Huawei OpenLab directions in the company noted: the financial sector, transport, power, the oil and gas industry, the public safety ensured within the "smart city" project. The demonstration center gives the chance at a stage of discussion and planning to gain an impression how the project in real life after its end will look.

«
Our strategy is a development of the platform and an ecosystem, investment into new technologies, such as cloud computing, Internet of Things, Big Data, mobile broadband communication, software-defined networks and other perspective directions allowing to create open, flexible and safe ICT infrastructure — Aiden At (Aiden Wu), the CEO of Huawei in Russia commented on OpenLab Moscow opening.
»

Among the Russian partners of Huawei OpenLab there are IBS, SAP, Alphaopen, Accenture, ATM, Business Climate, Diasoft, GridGain, ICBcom, ISS, NCore, starc., Unilight, Urban Innovation Group, I-Teco, Indemit, Jet Infosystems, Croc, LANIT-Integration, Proteas, Technoserv, TsIEKS, "the Center of Financial Technologies".

Xiao Haijun's appointment the CEO of Huawei Enterprise Business Group in Russia

In March, 2018 Xiao Haijun is appointed to the position of the vice president of the company and the CEO of Huawei Enterprise Business Group in Russia. He released Dzheson Cao who will continue to work in Huawei company from this duty. The position held by it it will be announced is later. Read more here.

Start of the Huawei Cloud direction and public cloud in Russia

The Huawei company announced on March 20, 2018 creation of the Huawei Cloud direction in structure of the Russian business of the company and start in Russia of the public cloud working under a brand of the global technology company and created in partnership with the Russian operator of network of bonus DPCs by company 3data. According to the statement of the company, Huawei 3data Cloud will become the first public cloud implemented by Huawei outside China under own brand. 3data will be responsible for operation of a cloud, the first and second support lines and also will become the exclusive partner during the work with customers of cloud services. Read more here.

2017

Cooperation with Sberbank

Sberbank and Huawei concluded the memorandum of strategic cooperation in June, 2017. The document at head office of Sberbank was signed by the President, the Chairman of the board of Sberbank German Gref and the chief executive of Huawei Guo Ping.

The memorandum provides interaction of the parties when developing the innovation products and services using machine intelligence, Big Data and "cloud" infrastructures. Be the focus of attention — electronic health care, services of "the smart city", "smart education", "the electronic government" and also Internet of Things. In 2017 by Huawei company in Moscow the OpenLab center which can become base for the subsequent joint projects will be opened.

Perpetual licenses of FSTEC

The Russian division of Huawei obtained in the spring of 2017 two perpetual licenses of the Federal Service for Technical and Export Control granting the right both to activities for technical confidential information protection and on direct development and production of means of protecting of such information.

The first license extends to control of security of confidential information from unauthorized access and its modification in means and the systems of informatization of customers. The company also acquires the right to design in the protected execution of means and systems of informatization, the protected premises, installation, installation, tests, repair of information security tools. The second license grants the right to development and production of program technical means of protection and processings of confidential information and also control of its security.

The multifunction center on Tverskaya Street

In May, 2017 Huawei announces opening of the specialized multifunction center on Tverskaya Street. It will be the first showroom, the service center and shop of the company in Moscow. The multifunction center will open at the end of May to the address Tverskaya Street, 28 on the first floor of the historical building and will occupy the area of 274 sq.m. Now the center works in the test mode.

In the showroom goods of the company of brands of Huawei and Honor, a part of which can be purchased at once, will be provided. In service division there will be a full range of services on a post to selling service of products. Also in the center the educational hall where will be will be located it is carried out different trainings and master classes, both for partners of the company, and for normal buyers.

The Colliers International company acted as the consultant of the transaction.

2016

The volume of direct contracts of Huawei with the Russian state companies increased more than twice

In 2016 the volume of the contracts directly concluded by Huawei (Huawei Technical Company LLC) with the Russian state companies increased more than twice. According to the estimates of TAdviser, in 2015 public industries spent for solutions and services of the Chinese company about 3 billion rubles, and in 2016 already about 7 billion rubles. At the same time, the number of such agreements grew only by 20%.

Huawei in Russia in 2016 concluded government contracts almost for 7 billion rubles
Huawei in Russia in 2016 concluded government contracts almost for 7 billion rubles

The largest domestic consumer of products of Huawei among state companies it is possible to call Rostelecom. In 2015 the total cost of agreements between the Russian operator and the Chinese producer was about 2 billion rubles. In 2016 this amount grew twice, to 4 billion rubles.

Other large partners of Huawei in Russia are Sberbank and MGTS. The largest Russian bank in 2016 spent about 2.5 billion rubles for solutions and Huawei services. MGTS "caused a stir" in this plan in 2015, having signed contracts approximately for 850 million rubles.

At the end of 2015 about 90% of all Russian government contracts of Huawei in terms of money were the share of contracts of Rostelecom and MGTS. In 2016 on contracts of two largest domestic partners of the Chinese company – Rostelecom and Sberbank, about 93% of all state agreements of the Chinese company in Russia were necessary.

If to look at purchases separately, then in 2015 delivery of GPON- and ADSL routers to Rostelecom to the amount about 780 million rubles ($14.5 million) became the largest contract. On the second and third place – the contract with MGTS for 430 million rubles and one more agreement with Rostelecom for 425 million rubles. Both in that and in other case it is about delivery of subscriber GPON terminals.

In 2016 the contract with Rostelecom for services in post warranty maintenance of the equipment and software for the amount about 1.6 billion rubles became the largest agreement of Huawei. On the second place besides the agreement with Rostelecom, but already on delivery of subscriber broadband access equipment (about 1 billion rubles or $16.7 million). The agreement with Sberbank on delivery of network equipment with a total cost of 944 million rubles became the third to the largest contracts of 2016.

New CEO

On May 24, 2016 Aiden At (Aiden Wu) is appointed the CEO of Huawei in Russia. At this position it will define business strategy and to direct activity of the company in the territory of the Russian Federation. Among the main objectives facing it on a new post — strengthening of market positions of three business groups of the company in Russia (Carrier Business Group, Enterprise Business Group and Consumer Business Group), the offer to clients of the innovative solutions and also strengthening and development of the relations with key partners and customers.

2015

Huawei goes to Gazprom with products of the Russian assembly

Gazprom avtomatizatsiya - the main integrator Gazprom - step by step localizes production uninterruptible power supply units (UPS) Huawei on the platform in Kaliningrad, told TAdviser in the company in December, 2015. Locally made Huawei UPSes and also own utilities equipment of Gazprom avtomatizatsiya are going to be used in Gazprom within import substitution.

"In the near visible future the utilities equipment of our production "will substitute" the similar equipment of import production on objects of Gazprom, - told TAdviser in Gazprom avtomatizatsiya. - The Kaliningrad enterprises of Gazprom avtomatizatsiya are one of the largest suppliers of a utilities equipment in the gas market. The accumulated experience allows to localize production of the UPS with the smallest costs and in the shortest possible time".

According to representatives of the company, further it is going to expand a range of products of Huawei made at capacities of Gazprom avtomatizatsiya. Arrangements with the Chinese company also provide expansion of use of its equipment in projects of Gazprom avtomatizatsiya in the field of power and automation.

Гендиректор «Газпром автоматизации» <!--LINK 0:246--> (on a photo on the right) at the V St. Petersburg international gas forum where the agreement on sci-tech cooperation with Huawei was signed
Гендиректор «Газпром автоматизации» Dmitry Zhuravlev (on a photo on the right) at the V St. Petersburg international gas forum where the agreement on sci-tech cooperation with Huawei was signed

Partnership with Huawei "Gazprom avtomatizatsiya" installed within implementable the company import substitution programs and masterings of new types of products for the energy industry enterprises.

"Considering modern geopolitical realities and appeals of the Government of the Russian Federation to reduce dependence of the Russian producers on suppliers from the countries who announced sanctions against the Russian Federation we, of course, actively work on import substitution program implementation. Solutions and the equipment of Huawei do not occupy a big share in our production yet, but is going to expand the nomenclature of the used equipment", - say in Gazprom avtomatizatsiya.

For 2014 it was specified in the annual report of Gazprom avtomatizatsiya that in 2015 holding joint actions for study of issues of localization of equipment manufacturing of Huawei based on subsidiaries of the company is planned". In the fall of 2014 Gazprom avtomatizatsiya received the status[8] of the authorized partner of Huawei Enterprise Business Group (the division of Huawei focused on a corporate segment of the market). Then, among other, the parties agreed about joint participation in project implementation in the field of creation of the systems of technology communication and regional data networks for "subsidiaries" of Gazprom. Also possibilities of production organization of a communication equipment were discussed.

In the fall of 2015 Gazprom avtomatizatsiya and Huawei Enterprise Business Group signed the agreement[9] on sci-tech cooperation. It covers activities for such directions as the equipment and softwares used at creation of computer systems and data networks, at creation of primary communication networks, the equipment and software of the systems of an audio-and video conferencing, information security systems. Cooperation also assumes the organization of joint solutions with Gazprom avtomatizatsiya and, if necessary, adaptation of software of Huawei under technology needs of the company.

Gazprom avtomatizatsiya told TAdviser that in addition to a utilities equipment their import substitution program covers the systems of linear telemechanics, independent power sources, block and complete devices of electrochemical protection, controllers of fire protection systems, ultra-sonic flowmeters, etc. The company says that all products are demanded in the market of the companies of the Gazprom group.

Credit of MegaFon of $300 million for purchase of the equipment of Huawei

At the beginning of December MegaFon announced signing of two credit agreements with Development bank of China (China Development Bank, CDB) for the total amount of $600 million. Within one of these agreements the operator will obtain the credit in the amount of $300 which will be spent for purchase of telecommunication equipment of Huawei for construction of new networks and upgrade of the existing infrastructure.

Agreement with OSK

In May, 2015 United Shipbuilding Corporation (USC) and Huawei signed the partnership agreement about cooperation. It was a part of the documents signed within the joint actions of the president Vladimir Putin and Chinese President who paid to Moscow an official visit.

The agreement fixes mutual interest of OSK and Huawei in the field of sci-tech cooperation. In the document the principles and conditions necessary for negotiation and joint study of the high-tech information and communication solutions which are potentially of mutual interest are defined.

OSK note that in case of creation as a result of joint activity of inventions by the parties issues of a design of the intellectual property rights, including with signing of the relevant agreement will be resolved.

2014

Sales of servers and DWH of Huawei in Russia flew up for 387%

At the end of 2014 business of Huawei on network equipment in Russia grew by 184%, and on servers and DWH – for 387%, the head of department of corporate business of Huawei (Huawei Enterprise Business Group) in Russia Jason Cao told in March, 2015. Indicators of business were estimated in a dollar equivalent, specified in the company.

The company noted that Huawei avoids perception in the market as mainly telecom vendor and moves to a position of provider of complex IT infrastructure. So high rates of sales growth on IT solutions in Huawei partly are explained with the fact that actively it began to develop this direction in Russia not so long ago: 3-4 years ago. In addition to network and the IT equipment the corporate block includes also the direction of solutions of unified communications and solutions for deployment of communication networks.

One more reason of high rates of growth of corporate business at the end of 2014 in Huawei call the strengthened work with a partner network. At the end of 2014 the number of partners in this direction at Huawei exceeded 200 companies. Business volume on key partners grew by 250%. The company notes that "the increasing number of market leaders selects Huawei as the strategic supplier of solutions ICT".

It is active Huawei began to develop the direction of IT solutions in Russia 3-4 years ago
It is active Huawei began to develop the direction of IT solutions in Russia 3-4 years ago

The course towards import substitution which became especially relevant in Russia in 2014 in connection with the western sanctions had on sales growth also an impact. The director of the department of work with partners of Huawei Enterprise Russia Maria Lobanova told TAdviser that it became one of the factors favoring to growth.

Lobanova found it difficult to estimate how many percent of growth were introduced by this aspect, however noted in a conversation with TAdviser that there are very many projects in which customers pass from the American equipment to the equipment of Huawei. Generally it concerns the state organizations since in the commercial sector customers are more free in the choice of the supplier, she told.

According to Lobanova, for March, 2015 the company in a different stage of study has already about 200 different projects in the corporate direction. The name of big new customers in the company were preferred not to be opened prematurely.

By 2015 the largest customers of Huawei in Russia became Sberbank with which the agreement on strategic cooperation was signed in October, 2014,VTB (the agreement in November, 2014),Russian Railway (May, 2014). According to Jason Cao, as of the beginning of 2015 Huawei cooperates with 23 federal and 10 regional authorities in Russia.

As of 2014 the company has in Russia three distributors of corporate solutions: companies Landata, Merlion and Treolan. The first of them, in particular, in February reported on more than double growth of sales volume of corporate solutions of Huawei and 20 percent growth of number of the partners who are regularly buying from it products of this type.

Speaking about development plans for corporate business in Russia in 2015 in the company note what will be to place essential emphasis on further development of a partner network, including in regions. According to plans of Huawei, in a year the number of her local partners in this direction should exceed 400 companies, and in 2016 – 600 companies.

Jason Cao told TAdviser that at the end of 2015 the company expects not less than 100% of growth of volumes of business in the direction of DWH and servers and not less than 100% – in the direction of network equipment. In a conversation with the representative of the portal he noted that upon growth maybe is much higher, but because growth of 2014 was in many respects caused by novelty of the corporate direction as such, in the company allow lower indicators on its growth in the next year.

According to Jason Cao, in 2015 the strategic marketing budget of Huawei on development of corporate business in Russia makes $8.5 million. The global budget on these purposes - about $50 million. Huawei notes that a considerable part of this amount as it is one of the strategic markets for the company is selected for Russia. From the funds about 50% allocated for Russia it will be directed to direct work with partners and holding joint actions. About 30% will be directed to staff increase of division of Huawei Enterprise, and 20% will make expenses on other needs.

Agreements with a number of the large companies

In May, 2014 the president Vladimir Putin visited China. According to the results of this visit Russia and China made a joint statement that the countries will increase efficiency of cooperation in hi-tech sectors and to deepen communications in science and technology.

Soon after that the agreement on sci-tech cooperation was signed by Huawei and the Russian Railway. Cooperation of the companies assumes joint implementation of such projects as development and upgrade of wireless networks of professional technology communication of the GSM-R standard, a broadband radio communication of the LTE standard (eLTE, LTE-R), the systems of an audio-and video conferencing, including high definition, for needs of the Russian Railway.

Also interaction of the companies in the development areas, development and upgrades of computer systems, data networks for technology needs of the Russian Railway, primary communication networks of the Russian Railway using technology of wavelength division multiplexing of channels and IP technology is supposed.

The agreement on cooperation was also signed between Huawei and Rostelecom. Representatives of operator then noted that the agreement will help it "to build high-speed fiber-optical communication networks in an expedited manner to provide to users of the company an unlimited range of modern services and a multimedia content in any point of the country".

In September, 2014 the agreement on cooperation with Huawei was signed by Avtodor state company. The parties noted desire to initiate cooperation in delivery and implementation of modern solutions, systems and the equipment for the purpose of infocommunication ensuring functioning of highways of the company. Besides, cooperation in project implementation, providing creation of the uniform integrated management system for traffic and collecting of a payment on highways of Avtodor and also information interchange for the purpose of synthesis of world and Russian experience, a mutually advantageous transfer of technologies and increase in efficiency of the innovation activity is supposed.

In October, 2014 the agreement on cooperation was also signed with Sberbank. It establishes the direct relations between Sberbank and Huawei and allows Sberbank to buy the equipment from vendor directly. Besides, the bank will speak as the financial partner of vendor in promotion of its products at the market of the Russian Federation and the CIS.

"Until recently in Sberbank the hi-tech equipment of mainly American and European companies was used, –German Gref commented on the agreement. – We continue and we develop cooperation with them, at the same time we pay attention to alternative producers and alternative supply channels. The high-quality equipment at the best price will allow Sberbank to receive the decision of this agreement".

Cao Chong is the new head Enterprise in Russia

In March, 2014 Huawei announced that in Russia Cao Chong is appointed the head of department of Huawei Enterprise of Huawei company. As specified TAdviser in the press service of Huawei, Liu Ming heading Huawei Enterprise in Russia as the CEO since 2011 passes to other position. Cao Chong moved to Russia from Great Britain recently.

2011

Start in Russia of sales of phones under own brand

In 2011 it became known that Huawei starts in the Russian retail phones under the[10]. Earlier she sold tubes only through operators and under their brands here.

Till 2011 only operators — MTS, VimpelCom, MegaFon, Sky Link were partners of Huawei in Russia in the direction of phones. Huawei decided to sell phones under the brand, inspired by rapid growth of sales of smartphones, the marketing director of its Russian office Alexey Gromakov says. Negotiations go, in particular, with Euroset and Svyaznoy.

The president of Euroset Alexander Malis and the representative of Svyaznoy Elena Nogotkova confirmed it, having added that there are no agreements yet. Nevertheless Huawei expects to enter until the end of 2011 the first five of suppliers of smartphones to Russia, and in three years — to take the 3rd place, Gromakov says, referring to successful sales of "operator" tubes. He does not give number. The third place on sales of the Huawei smartphones shines hardly, Malis doubts.

In 2010 Huawei imported into Russia about 80,000 smartphones for operators, and this year will sell about 100,000 through them and as much again — through independent retail, the leading analyst of Mobile Research Group Eldar Murtazin estimates.

MegaFon offers a number of devices of Huawei under the brand: smartphones running Android, budget 3G-phones, routers, a photoframework, the representative of the operator Karen Asoyan says. For the last year he sold more than 100,000 such devices. The press secretary of MTS Valeria Kuzmenko called only a share of the Huawei phones in a monobranded line of this operator — 20%.

Equipment manufacturing on Angstrem

On June 8, 2011 Angstrem and Huawei company announced agreement signature about cooperation and the beginning of implementation of the joint project in production of telecommunication equipment in Zelenograd situated near Moscow. The agreement signed by the CEO of Huawei Technical Company LLC Van Kesyanom and the President of NPO Angstrem Alexey Tabolkin provides development of mutually advantageous sci-tech cooperation in the field of microelectronics, creation of coproduction of products of the electronic equipment and the telecommunication equipment intended including, for creation of LTE networks and also implementation of finished goods to telecom operators and corporate clients in the territory of the Russian Federation.

Within the agreement Angstrem will make the equipment under the name of Huawei on own production base meeting the modern international standards. In addition to contract manufacturing, within exchange of the technology capacity of the company will develop jointly solutions in the field of telecommunications and communication.

At the first stage of technology partnership Angstrem will make the following equipment of Huawei:

  • base stations of LTE,
  • equipment of DWDM (OSN6800 and OSN1800),
  • equipment of access (MA5600T and MA5603T),
  • IP-switch (S2300 и S3300 + S5300),
  • equipment RRL (RTN series),
  • operator routers (NE40/NE80/NEx series).

Production which design capacity is up to 10,000 products a year will be put in operation in the IV quarter 2011. Within project implementation Angstrem is going to invest only in 2011 in production about 400 million rubles, and by 2013 will open additional production capacities in the special economic zone in Zelenograd.

In return, the Huawei company will provide unique developments and technologies, Angstrem will provide training of specialists and will install products quality control system. It will allow the company to expand presence in the Russian market at the expense of new opportunities for distribution of the products, having fulfilled the license requirements of key customers and also to make more effective logistics of the deliveries. Huawei traditionally tries to make the maximum contribution to development of economy in the countries of presence and also pays much attention to high-quality localization of the solutions.

The CEO of Huawei Technical Company LLC Van Kesyan noted: "Russia is the priority region for Huawei company. The joint project with Angstrem company will give start to the most large-scale production of solutions of Huawei in the territory of the Russian Federation. It will allow the company to expand the range due to localization of solutions, to have new opportunities of distribution and to strengthen competitive advantage in the Russian market".
"Partnership with Huawei – a unique opportunity for Angstrem to develop own competence in communication equipment manufacturing. We are going to change gradually in the course of localization complication in the assembled equipment import microelectronics for the Russian. Also we will begin with integration into the equipment of Huawei of the single-crystal microprocessor with navigation function GLONASS/GPS, developed on Angstrem, - the President of NPO Angstrem Alexey Tabolkin emphasized.

2001: Opening of training center in Moscow together with MTUCI

In 2001 together with Moscow Technical University of Informatics and Communications (MTUCI) of Huawei opened Training center in which trainings on all main types of the equipment of Huawei are provided in Moscow.

1997: Start of work in Russia

Huawei works in Russia since 1997.

Notes