H3C Technologies

H3C offers a portfolio of products for digital infrastructure, covering computing, data storage networking, security and related areas, and provides a comprehensive universal digital platform, including cloud computing, processing and analysis big data (), Big Data interoperability and, information security new security, (),, Internet of Things IoT and edge computing AI technologies based on, as well as 5G a range of technical services.

Performance indicators

2020: Share of the global router market - 6%

At the end of 2020, H3C occupied 6% of the world router market (data Gartner). More. here

History

2023: HPE sold its stake in H3C to Unisplendour

On May 26, 2023, the U.S. Securities and Exchange Commission (SEC) announced that Hewlett Packard Enterprise (HPE) had entered into an agreement to sell its stake in the Chinese joint venture of the Server and Storage Systems (H3C) DSS. The transaction amount will be $3.5 billion.

HPE reportedly owned 49% of H3C 's share capital, while the remaining 51% was owned by Chinese IT provider Unisplendour. As part of the signed agreement, HPE sells its stake to Unisplendour International Technology Limited, a subsidiary of Unisplendour.

HPE sells its package in H3C to Unisplendour

Documents sent to the SEC said HPE plans to use the cash it has received to pursue a number of initiatives aimed at improving business operations, returning capital to shareholders and paying off debts. In addition, "strategic investments" and expenses for general corporate purposes are provided.

Ahmed Mosharafa, head of machine learning technology development at Machine Learning Reply, noted that HPE can use the money from the sale of H3C assets to develop promising projects in the field of artificial intelligence. HPE, in particular, is developing the Ezmeral platform, which includes container orchestration and management, AI tools and data analytics. HPE made several acquisitions to expand its presence in the rapidly developing AI market: for example, in 2018, BlueData, a firm specializing in the development of machine learning software, was acquired. It is said that under the leadership of the general director Antonio Neri, HPE is transforming into a large software provider for corporate customers developing projects in the field of artificial intelligence. A H3C sale is part of an appropriate strategy.^[1]

2021: Tadviser interview with Vice President Gary Huang

In May 2021, Gary Huang, President of International Business and Senior Vice President of H3C, answered TAdviser's questions on the Russian market, current position and prospects for the company's development in Russia. Read more here.

2019: H3C re-enters Russian market

In September 2019, the Chinese-based company H3C announced its entry into the Russian market. H3C International Business Department President Gary Huang told TAdviser that the company plans to register a subsidiary in Russia in the near future, as of September, work is underway to create this legal entity. It is planned to place a local office in Moscow City.

H3C is a joint venture between China's Tsinghua Unigrup and Hewlett Packard Enterprise (HPE). They own 51% and 49% of the company, respectively.

According to the data presented at the presentation in Moscow, H3C revenue in 2017 amounted to $4.3 billion, and the total staff is about 8 thousand people. Citing IDC research, H3C said that in its native market in China, it occupies a leading position in a number of segments of the ICT market. Thus, in the 1 quarter of 2019, the share of H3C in the segment of switches for data centers was estimated in 41.9%, blade servers - in 42.6%, solutions for corporate networks - in 37.5%.

The course towards the digital economy makes the Russian market extremely attractive for H3C "(photo - TAdviser)"

This is not the first time H3C has entered the Russian market. It had already tried to do so in 2005, when it was still a joint venture between 3com and Huawei (Huawei-3C). Then she registered an office in Russia, but in 2011 the local legal entity was liquidated.

The H3C vaguely explained this by the fact that the company repeatedly underwent changes of ownership, alterations of the shareholder structure, and then, in 2005, changes were already being prepared that did not allow it to fully enter the Russian market. Later, difficulties arose with the parent company, which did not make it possible to fully develop the business through a subsidiary legal entity in Russia.

At the same time, due to the alteration of the shareholder structure, problems arose not only with the development of business in Russia, indicate in the H3C. For the same reason, the company, which since 2003 pursued a policy of entering foreign markets, in 2009 began to close offices in a number of other countries. Despite this, they say in H3C, its products were present at

Now H3C calls Russia a priority market for itself and explains his interest in entering it right now in connection with plans for the digital transformation of the state and large business. H3C sees the public sector, telecommunications, oil and gas, and financial industries as its priority vertical markets in Russia. In the telecom sector, in particular, H3C is negotiating with the largest telecom operators, such as Megafon, MTS, etc.

H3C has a very extensive catalog of products and services. It includes a range of switches and routers, wireless and IoT solutions, cloud computing, information security, server and DSS lines.

However, in Russia, despite its more than ambitious plans, at the initial stage H3C plans to offer a very limited set of products. The presentation, shown to potential channel partners in Moscow in September, featured only 4 product categories from the portfolio: cluster routers, switches, access points and a solution for building a cloud computing environment.

Gary Huang says that due to Russia's policy on the digital economy, H3C decided to start the digital transformation by offering its most mature products suitable for this. Entry into the Russian market will be phased, and in the future the product line for local customers can be expanded.

To work in Russia, the company began to develop a partner network. TAdviser was H3C with the data that by the time of the announcement of the entry into the Russian market, the company had entered into partnership agreements with about 20 local organizations and about 20 more agreements were in the process. Most of them are second-level partners. As for the partners of the first level - distributors - so far a partnership agreement has been concluded only with Merlion.

According to representatives of the H3C, the company plans to acquire two more distributors in Russia from among the largest local IT companies.

At the same time, top managers of the H3C voice abmicious goals, despite their initial limited offer for the Russian market: to gain a share of 15% of the local ICT market here in the next three years. True, when asked how the company plans to compete with strong, already established players in this market, H3C representatives respond evasively. They refer, among other things, to their many years of expertise and the fact that in China they managed to gain large shares in many segments of the ICT market.

2015: Merger with HP assets and sale of H3C to Chinese state-owned company

On May 21, 2015, HP announced the sale of most of its corporate business in China. Through the deal, the computer manufacturer hopes to strengthen its position in a country where it is not easy for American companies to work.

According to an official statement, HP is selling a 51 percent stake in a new H3C company based on the eponymous Chinese manufacturer of network equipment and corporate software, as well as HP divisions responsible for selling servers, storage and IT services in China. The buyer in this transaction was the state-owned company Tsinghua Holdings, which is funded by Tsinghua University, one of the leading technical educational institutions in the Celestial Empire.

HP announced the sale of half of its corporate business in China for $2.3 billion

Tsinghua will pay about $2.3 billion for the majority share of the H3C. The cost of the entire company with a staff of 8 thousand employees is estimated at $4.5 billion with revenue of $3.1 billion and adjusted operating profit of $400 million in 2014. Formally, H3C will become a subsidiary of system integrator Unisplendour (part of Tsinghua Holdings), with which HP has established strategic cooperation since 1999.

HP says that the announced deal will not affect the work of other Chinese divisions of the companies, and they will remain under the wing of the American corporation.

The fact that HP is going to sell part of the Chinese corporate business was first reported by the media in October 2014. From that moment until the official announcement of the deal, a large amount of information about it appeared in the press. In particular, it was noted that HP limited the circle of buyers of its IT assets only to Chinese companies, since at the expense of them the California manufacturer intends to gain access to government contracts and strengthen its position in a country where the authorities are increasing pressure on the business of foreign (especially American) companies. The Chinese government wants to transfer all financial, state and military institutions to equipment, software and other local technologies by 2020, writes Bloomberg.^[2]

In fiscal 2014, HP's network equipment division showed revenue growth to $2.6 billion from $2.5 billion a year earlier. According to the results of the three-month reporting period, closed on January 31, 2015, this business fell by 11% on an annualized basis, and this decline was higher than the manufacturer's expectations, which is partly to blame for the Chinese market, said HP CEO Meg Whitman.

2014: HP tries to sell half the H3C to Chinese funds

At the end of October 2014, it became known that HP was going to sell more than half of the shares H3C one of the Chinese private investment funds. At that time, the market value of the H3C was estimated at $5 billion. As of the end of October 2014, the H3C employs about 4,800 people.

2010: HP takes over 3Com

In 2010, 3Com became part of HP, which automatically received and H3C.

2007: 3Com buys Huawei stake

In 2007, 3Com bought its stake in the joint venture from Huawei.

2003: Huawei Technologies and 3Com create JV H3C

The company was founded in 2003 as a joint venture (JV) between Huawei Technologies and 3Com, from which H3C adopted the first letters in the names (H + 3C).

Notes