Huawei calls on Russia to cooperate against the West
At the Opening of the last Huawei Enterprise division partnership conference in Moscow at the beginning of March, Xiao Heizun, General Manager for Eurasia region, thanked more than a thousand participants who came to the event, ignoring the disturbing rumors about the coronavirus. However, the Chinese vendor had something to fight against last year without any virus: the speaker described 2019 as unique for Huawei in terms of the scale of the problems it faced due to sanctions imposed on it by the U.S. government, which prohibited the supply of American components and made it difficult to sell the company’s products in markets in several countries.
Xiao Heitziun even quoted Vladimir Putin as saying that we are on the verge of the first technological war of the coming digital age. In these circumstances, he expressed Huawei’s desire to jointly create a digital community in Russia with a view to a common future within the new strategy of TIGER (Technology, Industry, Growth, Ecosystem, Reliability). This strategy includes joint development and use of technologies, creation of industrial solutions, incentive programs for partners and ecosystem formation. The speaker could not refrain from pun and joked that such a community will become a kind of “tiger” in the digital forest.
It is true that Huawei and Russia have many similar problems that require import substitution. The company needs its own component base to continue producing competitive products, and Russia needs a supplier that is minimally dependent on western providers to counteract sanctions threats. According to the speaker, his company demonstrated its ability to resist such threats in 2019. Despite all these difficulties, its annual revenue (including telecom and consumer divisions) increased by 12% to $124 billion. No figures were provided for the Enterprise division, but since in previous years its revenue was about 10% of the annual revenue of the entire corporation, it can be estimated at approximately $12 billion.
“Huawei Enterprise’s solutions are used by 228 Fortune Global 500 and 58 Fortune Global 100 companies,” said Xiao Heizun. “For Huawei, the Russian market is a priority. Over the past year, the number of Huawei’s corporate customers in Russia has increased by 16% to over 1,100 companies. As in previous years, Huawei Enterprise’s Russian division ranks first in terms of sales outside of China”.
In 2019 alone, the company invested more than $18 billion in research and development, and its total expenditure on R&D over the past 10 years exceeded $90 billion. According to Xiao Heizun, today his company is able to present a full replacement for western products in the markets of processors, chipsets, devices, communication and cloud technology.
The conference announced a strategic partnership between Sberbank and Huawei to build the SberCloud. Advanced cloud platform using the entire Huawei technology stack. On this platform, 37 integrated cloud services IaaS and PaaS will be available to Russian and international users. This will allow SberCloud customers to deploy IT infrastructure of any complexity in the cloud, work with large data clusters, manage cloud containerization, and automatically deploy, scale and manage applications. Plans to use Huawei solutions in the capital for the deployment of 5G networks, video surveillance systems and artificial intelligence technologies were announced by Alexander Gorbatko, Deputy Head of the Information Technology Department of Moscow.
Today Huawei has more than 1000 sales partners in Russia, more than 20 joint solution development partners, more than 70 service partners, and the number of certified specialists exceeds 5600 people. It should be recalled that a year ago there were 800 sales partners, the number of development and service partners was about the same, but then there were only 1.5 thousand certified specialists.