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July 22, 2015

For Those of Us Who Know the Truth about Clouds

I have decided to renew my subscription to The Wall Street Journal, but it may be short-lived.

By and large, I think that as a business, getting mentioned in the Journal is nice.  However, sometimes the news is as shaky as rumors “Heard on the Street.”

The WSJ talks about the internal politics of the Huawei, about CEO Ren Zhengfi, and the chairman’s choice of a rather unique picture he himself selected to kick off the company’s global ad campaign. You can see it for yourself HERE. For any network planner, the picture is seen as a recognizable truth.  The network can be drawn as a cloud with lots of beautiful things floating by, but the reality is that network architectures take a lot of balance, adjustment  . . . and pain.

Ignoring the advantages of TDD (China’s modification of ROW Standards) over FDD in the long run, Huawei is moving beyond its “me, too” product line.

Huawei is a force in the rest of the world. Candidly, I’m hearing the change in Latin America. All the executives down there that used to have Swedish as a second language are now learning Mandarin.  And it’s clear that Huawei is learning Spanish.

Huawei’s revenues grew by 30 percent in the last year and it’s chasing handset opportunities with a vengeance. They have become the fourth-largest handset manufacturer.

However, unlike Apple and other Californians, the cloud has parts in the Huawei architecture. While best in breed in different categories is a goal, the reality is that for many carriers, a ‘throat to choke’ is a more-favored strategy, and Huawei is making sure it’s the preferred throat.

Huawei is clearly taking advantage of a market that is not ready to invest in internal innovation.  Huawei is spending more on R&D than Apple and it’s probably going to pay off in the near future.

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