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Huawei: Present & Future Security Level: January 2017 Huawei: present & future Huawei at a Glance 180,000 80,000 170+ 15 No. 72 No. 129 Employees R&D Countries R&D institute Interbrand's Top Fortune Global employees and centers 100 Best Global 500 Brands 2 Globalized Resource Deployment, Localized Operations The Netherlands Toronto Hungary Germany Ottawa Romania Silicon Valley China Bahrain Mexico India UAE Malaysia Huawei headquarters Accounting shared service center Brazil Solution center Supply center Mauritius R&D center Training center Argentina Technical support center • Operations in 170+ countries; approximately 180,000+ employees comprising 160+ nationalities worldwide; 71% localization rate • Huawei's global value chain allows the smooth transfer of capabilities around the world, develops and retains talent in local countries, and creates jobs and economic opportunities. • Strengthen glocalized operations and ensure that local management teams shoulder operating responsibilities from end to end and have corresponding decision-making authority. • Ensure that the global industry chain is grounded in win-win approaches and reciprocal obligations; be a responsible corporate citizen in the local community. 3 Focusing on Information Transmission, Storage, and Distribution to Provide ICT Solutions and Services for Three Customer Groups Serving hundreds of Serving global enterprises and millions of consumers Serving global carriers industry customers Enterprise Business Consumer Business Carrier Business Enabler and preferred partner of A brand loved by consumers Customers' best strategic partner enterprise digital transformation A Global Leader of ICT Solutions and Products Information Distribution and Presentation Information Transmission Information Processing and Storage Smartphones Wireless networks Enterprise networks Data center infrastructure MBB & home devices Fixed networks M2M connection Plataformas de análisis de Big Wearable devices Carrier software and management platforms data Vehicle telematics core networks Cloud services Professional services 4 Carrier Business: Consolidating Leadership in Established Markets, Driving Carrier Digital Transformation 70%+ revenue from global top 50 carriers Consolidating leadership in established markets • RAN, IP router, WDM, broadband access, and IPTV Growing presence in new markets and driving carrier digital transformation • Best 4K TV Service or Solution award by TV Connect for Huawei and Ooredoo in 2016 • Best Telco Big Data Analytics Platform award for FusionInsight at Telco Data Analytics Summit 2016 • Cloud Journey of the Year award by Datacenter Dynamics for the Huawei–China Telecom Jiaxing Government Cloud • Best Managed Service Innovation award for the OWS Cloud Platform at Informa Managed Services World Congress 2016 … • OSS ranked as a Challenger in Gartner's Magic Quadrant 2016 Source: Dell'Oro, Infonetics, Ovum, HIS, Gartner 5 Increasingly Recognized by Industry Customers • FusionSphere Cloud OS named by Forrester as a Strong Performer in Private Cloud Software Suites Governments and public • OceanStor system ranked as a Leader in Gartner's sectors in 140+ 300+ financial services countries and regions institutions 2016 Magic Quadrant for General-Purpose Disk Arrays Enabler and • Deployed 290+ LTE industry networks – global leader 170+ preferred partner of 220,000+ km of highways & • No. 1 in market share growth rate for data center Power companies enterprise digital railways transformation switches; No. 2 in market share for Ethernet switches and enterprise routers 600+ 400+ leading Internet companies • AnyOffice solution ranked as a Leader in Gartner's renowned universities & colleges Magic Quadrant for Enterprise Mobility Software in China Source: Forrester, HIS, IDC, Gartner 6 Winning Consumer Loyalty and Building Brand Influence Interbrand's Top 100 Best Smartphone retail market 2016 smartphone shipments: 139 million units, up Global Brands share 139 30% YoY No. 72 No. 3 108 75 Increasing global brand BrandZ Top 100 Most 52 awareness Valuable Global Brands 32 20 2016H1 81% 3 No. 50 2010 2011 2012 2013 2014 2015 2016 Smartphone shipments (millions) 7 Sustainable, Robust Growth Robust growth across all business segments, Sales Revenue thanks to balanced market presence worldwide and commitment to strategic focus 75* USD billion • Enterprise business: innovative solutions for digital transformation delivered together with partners; profitable 60 and sustainable growth in key industries (e.g., smart cities, energy, finance, transportation, and manufacturing) 44 • Consumer business: key breakthroughs in the global 36 33 high-end market, taking Huawei's brand influence to a new level • Carrier business: stronger position in network products and services; video, cloud, and operations transformation 2012 2013 2014 2015 2016 as strategic priorities; growing the industry and moving it * 2016 figure is unaudited forecast data. forward; higher working capital efficiency 8 Next 20–30 Years: The World Will Become Intelligent All things Connected All things All things Sensing Intelligent Pipe Cloud Devices Ubiquitous connections, Ubiquitous gateways to the high bandwidth, Digital brains, Intelligent World low latency evolving in real time • The Intelligent World will be powered by data devices, pipes, and clouds: All things sensing, all things connected, all things intelligent. • Devices will be the sensing organs of the Intelligent World; networks will connect them together; clouds will be its digital brain. 9 Next 10 Years: Connections Will Get Smarter, Connectivity Will Become a Primary Resource Physical Digital Intelligent Industry 4.0, big data, AI WWW, mobile Internet 3G/4G/5G, FTTx, cloud, IoT • In 2025, the number of connections will top 100 billion, 5x more than 2015. • In 2025, 75% of global homes will have access to broadband. Source: Huawei GIV 2016 10 Next 10 Years: From Smartphones to Intelligent Phones No More Learning to Use Devices: Devices Will Understand Us Digital Intelligent Physical World Devices World AI Human Intelligence Technology Robotics Humanity Digitization of the physical world: everything connected, more intelligence, natural interaction between humanity and machine • By 2025, there will be 40 billion personal smart devices, 5.6x more than 2015. • By 2025, 90% of smart device users will be using personal assistants on intelligent phones. Source: Huawei GIV 2016 11 Long-term and Heavy Investment in R&D for Breakthroughs 9.2 • Focus on strategic opportunities and never waste strategic resources on non-strategic areas Total investment from 2005 to 2014: • Keep investing heavily (about 10% of annual revenue) in 6.6 over CNY190 billion R&D 5.2 4.8 • Make technological breakthroughs through perseverance, 3.8 dedication, and self-reflection 2.7 USD Billion 2.1 • 50,377 patents granted; a member of 360+ standards 1.6 1.2 0.9 organizations, industry alliances, and open source communities; holding 300+ key positions; 49,000+ proposals 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 12 Consumer Business Consumer Business: Providing High-end Stylish Devices and Building a Brand Loved by Consumers and Partners Huawei Mate series: Honor Play Honor 7, Honor 8 Smartphones premium users Huawei Y-series Huawei Nova series Huawei P series: trendsetters Entry-level products Star products Flagship products Tablets Wearables MBB Smart Home M2M Huawei X series MBB and Great cross-over home product Huawei M series products Great audio and video 13 Continuous Innovation and Breakthroughs in IT Infrastructure KunLun FusionStorage 6.0 World's first 32-socket x86 server SDN-driven all-converged cloud storage VM OA IOT RDS (OLTP) Database HPC Hadoop ADS (OLAP) ST Interop Tokyo 2016, Grand Prix +99.999% 10M↑ 30% 1 reliability TPMC less TCO Superior performance Stable and reliable Open ecosystem Convergent and Elastic and Open and shared efficient compatible 8–32 sockets RAS 2.0 Mature industry Proprietary Industry leading HyperVisor/OpenStack/ Vertically scalable Highest level of reliability of Comprehensive migration technologies 4,096 nodes; exabyte-level Hadoop architecture open platforms plan for midrange computers Convergence of storage block/file/object based storage Huawei: IT leader with over 10 years of technological expertise and innovation 14 Joint Innovation with Global Leading Carriers and Key Partners Jointly innovate with customers and key partners to define roadmaps for products and solutions development, reinvent business models, and build the industry ecosystem. The aim is to continually improve the competitiveness of products and solutions and help customers achieve business success. Strategic Match Topics Idea Concept Design Customer/partner's role Huawei's role Trial • Location of joint innovation centers • Global practice and experience sharing Leading products and solutions • Marketing experts • Market and solution R&D experts • 5G • Test environment • Facilities and equipment • SDN/ NFV • Marketing and channels • Solution development and verification • NB-IoT… 15 Huawei in the universities UK China • Universidad Colegio de Londres Rusia • Universidad Tsinghua Canadá • La Escuela Imperial de Londres •Universidad Estatal de San • Universidad Fudan • Universidad de Toronto • Universidad de Edimburgo Petersburgo • Universidad Normal de Pekín • Universidad de Newcastle Holanda • Universidad de Xi'an Jiaotong • Universidad Erasmo de Róterdam Alemania • Universidad Nacional Sun Yat-sen • Universidad de Stuttgart • Universidad de Aeronáutica y Astronáutica de España
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