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Cisco Huawei compromise to ZTE behind

In the end, sales and cooperative relations after just a month, Cisco attitude suddenly turn. Recently, John Chambers of this company CEO recently in the first quarter earnings conference call, ZTE is a partner, not a rival. Cisco will expand and ZTE cooperation, and is committed to long-term development in china.

Suddenly, ZTE and Huawei Overtures

Last month, when the United States Survey ZTE, Huawei events fired raise a Babel of criticism of time, Cisco was industry guesses for pushing hands behind the scenes. Not only such, Cisco also unilaterally ended with ZTE seven year-long relationship. A series of events that Cisco became a target for all, perhaps under pressure, Cisco began to woo Chinese manufacturers.

The expression of and ZTE relationship, Chambers also said the United States Congress for Huawei Cisco and released product security threat report no relationship, the United States and China will resolve the conflict, not a trade war. ” Cisco Huawei have as their main rivals, before the differences which lead to the possibility of a trade war is very small. ” Chambers said, ” you will see both sides tried to solve this problem, because doing so, regarding the world and economy of the two countries are beneficial. The differences have to Cisco business in China has brought the pressure. ”

Last month, the United States Congress report, Huawei products would be a threat to the national security of the United States, because of Huawei products susceptible to spy network attack. The report pointed out repeatedly Huawei and the Chinese government have a close relation. Huawei have for their products are safe and that defended the Chinese government did not correlate with.

Forced to compromise from the pressure of market

At present, the domestic Internet and data transfer, routers, switches and other network equipment market, Cisco and occupy most of the market share. Along with the information security related sound is amplified, Cisco began by all the questions.

Not long ago, China Unicom has been completed on the ” China169 ” backbone network Jiangsu Wuxi node core cluster router of the relocation project, the relocation is Cisco router by CRS. Therefore, the analysis thinks, Cisco products loopholes and back problems, is to induce operators fears and even replacement of its equipment is the main reason.

In fact, with the continuous development of Internet technology, network security has increasingly become the focus of attention of operators. Previously, Cisco discovered security vulnerabilities have triggered operators General anxiety.

Cisco for Chinese market fears are justified, although its last week released first-quarter earnings exceeded expectations, but it is expected that the two quarter profits will be flat year-on-year revenue growth will slow down. Chambers expected, the European market in real improvement, situation will deteriorate further, this view with him in the August fourth quarter conference call published views.

See the results expected, Chinese market is crucial for Cisco, once lose the Chinese market, while the European market has not improved the situation will be very bad, cisco.

The lack of innovation leads to mark time

Why Cisco will be considered the driving force behind the scenes? Why Cisco and ZTE after breaking up and look forward to composite? A series of events in the biggest reason may still lack of innovation by cisco.

Careful study, come nearly ten years, as a result of Huawei adhere to open the road of innovation, and Cisco in normal competition means to suppress Huawei, gradually closed.

According to official data to analyze the two enterprises, ten years of Huawei sales revenue growth of 7 times the number of employees, increase of 10 times; and Cisco ten years sales revenue grew only 1 times, the number of employees is also increased by only 1 times, the market value has dropped below the Cisco billions of dollars, only to peak around 1/5.

As can be seen, due to adhere to the open innovation Huawei obtained rapid development as well as the Cisco Huawei Chambers on very seriously, so do not hesitate to use the political means of combating Huawei Cisco Huawei Cisco, will stand in a.

Cisco seem to live in the shadow of the once glorious. On March 27, 2000, Cisco total market capitalisation of $555000000000, was more than Microsoft most valuable companies become the United States of America market. However, king is not long, Cisco earned $43218000000 in 2010, ten years grew by only 1 times, and by the end of 2011, Cisco ‘s market value has dropped below $100000000000, less than the peak of around 1/5.

Recently, from the nonprofit Opensecrets statistics show, in the United States House Intelligence Committee started to Huawei, ZTE survey 2011, Cisco lobbying spending record, $2800000.


Huawei, ZTE started to expand the European market

The United States market too upset, let ZTE, Huawei will shift the focus to the European market, for the two global enterprise, do not hang in a tree.

Recently, France on China Telecom equipment providers expressed welcome, said the Chinese communication enterprises, France would not have any obstruction. France will be fair to all the Chinese enterprises to enter the european. In addition to France, the British Prime Minister has also expressed support for Huawei business in the uk.

As can be seen, Huawei, ZTE strength is recognized by many countries regions. ” Only to win the markets of developed countries, it is a real victory of globalization. ” ZTE chairman Hou Weigui once said. Not long ago, the United States began to capture the European market ZTE bypass, ZTE’s Grand X In in ” the heart of Europe ” Austria overseas first, this also opens the ZTE occupation of high-end European market’s long-term strategy.

Not only is ZTE, Huawei also said its investments in Europe, second only to Geely, China ranked second, hired European employees ranked first, reach 7300 people. Huawei executives said, weeks also will declare to Europe to new investment projects, and stresses, its development plans are not the United States Congress report of the effect of. Huawei hope Europe as its intelligent mobile phone business focus expansion area.

Despite these challenges, but Huawei and ZTE said, compared with the United States, Europe is more friendly to them. The European market than the American market is more open, more transparent.

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