Actually, the reason of a head-on confrontation between Huawei and Cisco is not sufficient and shouldn’t have been ‘deadly rival’ at all from business perspective, at least up to the present period. All the time, Huawei’s main revenue position is in basic network market of operator; and although the present terminal service and enterprise business is rising rapidly, operators are still account more than 70% in its revenue. However, Cisco dominates in IP field, and Huawei’s market shares in this domain is so small that it can only appear in the ‘others’ of the data institution market report
If we must talk about ‘rival’, the most dangerous rivals should be Ericsson, Nokia Siemens, Alcatel-Lucent, Motorola; while the biggest rivals of Cisco are Juniper, HP network, Dell etc., at least Huawei is not a weighty rival prensently. Moreover, both of them are going far gradually in strategic direction—-Cisco grabs the opportunity of universe interconnection and increasingly turns into a enterprise which focus on service and industry, while Huawei always declares that firmly focalize network pipeline strategy.
Indeed, the two enterprises are in a head to head situation. However, Cisco’s revenue in china is about 2 billion, and the scale of Huawei account up to 12 billion, it’s clear at a glance who is on the top. So, we should say the emotionally unpleasant between Cisco and Huawei is far more than the chasing fight in business.
Exaggerately, the tension between Cisco and Huawei can almost be seen as barometer of the confrontation relationship in Sino-American IT field. With the growing boom of dynamic autonomic movement in Chinese IT market, the two enterprises showed even more hairtrigger high danger situation in this kind of emotion.
Helpless or infusing
‘As an enterprise, we are insignificant in the relation between governments. We strengthen communication with national governments to avoid producing conflicts, and emerging conflicts between us. We just hope doing business quietly, you guys should not think of us, however the relationship between governments is, I believe this is what global enterprise hope’ Xu zhijun, Huawei rotating CEO said about the influence of business in the Sino-American relationship on the universe analyst conference , April.
We can perceive that the present relation with Cisco is not what he pleased to see. ‘Be realistic, Cisco is not the most dangerous rival. The source of speculation is basicly from the outside, instead of Huawei.’ another senior executive said.
Then, why do the market bloating atmosphere going on at the opposite way yet?
He said, Huawei always tend to compare themselves with sightcing in industry to inspire them to make progress, instead of aiming at one certain enterprise, for instance, they are always contrast with Ericsson in the wireless field and continuously transcend. So the only purpose is to find a landmark for promoting, instead of being ’enemy’.
to be continued…
Comments are closed