We are still a small player: Huawei
Huawei says it is still a small player in the enterprise space, but is quietly confident of success in the market following the announcement of a cloud based partnership with Deutsche Telekom.
The enterprise division is the smallest of the Shenzhen-based group’s three major business segments, having launched in 2011. It achieved revenue of $3.14 billion in 2014, representing 7% of a total $46.5 billion.
The other two businesses are the consumer division, which includes smartphone manufacturing, and the network business, which accounts for close to 70% of sales.
Enterprise Business Group president Yan Lida told journalists at the Huawei Cloud Congress 2015 in Shanghai, China, that the enterprise division aims to record revenue of $10 billion by 2019.
The group signed an agreement with Deutsche Telekom to provide IT and private cloud services to enterprise customers, representing its first foray in this segment, outside of China.
Lida stressed that Huawei is in no rush to foster new partnerships. When asked about the company’s expansion plans for IT and private cloud services, he said that the company is working on a three year strategy, globally, using partnerships with carriers. “We are not in a big hurry,” he said, adding that Huawei would select new regions and partners carefully, after an assessment of the Deutsche partnership.
“We are a small player,” Lida said of the enterprise business. He said that many IT companies have revenue exceeding $10 billion. “Its not very aggressive,” the enteprise lead said of the company’s ambitions to reach $10 billion by 2019.
On the $10 billion figure, Lida said: “We believe that can be considered a preliminary success.”
Using a Chinese analogy, Lida said that only when the water reaches the ditch can it become a stream.
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