Exclusive Interview: CTO of Huawei Datacom on APAC Growth, New Products, and Partner Strategies

In a recent interview with APAC Business, Daniel Tang, Chief Technology Officer of Huawei Data Communication Product Line, unveils recent growth, partner strategies and future plans in the company’s datacom (data communication network) business in the Asia-Pacific (APAC) region. He also underscores Huawei’s commitment to delivering innovative network solutions to markets worldwide.

 

Impressive Progress: Propelled by Customer Satisfaction and Partner Support

Driven by customer satisfaction and robust partner support, Huawei’s datacom division reported a 26% growth in its APAC revenue. This is largely attributed to the significant strides made in the public sector, which saw a 38% increase, and the finance sector, which experienced a phenomenal 68% rise. Moreover, 20 existing large enterprise customers have introduced more Huawei datacom solutions, further solidifying the company’s foothold in these sectors. This expansion not only demonstrates a high degree of customer satisfaction but also reflects the trust and confidence these enterprises have in Huawei’s innovative solutions. The increased adoption of Huawei’s datacom solutions is a testament to its effectiveness and reliability.

This progress resonates with the Gartner report’s observations. The company’s products ranked second in the Data Center Network switches and led the Global Router Market and the global enterprise Wi-Fi 6 Market (excluding North America).

 

APAC Strategy: Harnessing the Power of Digitalization

As one of the most rapidly growing and diverse markets globally, APAC represents a significant opportunity for Huawei. The digitalization trend across APAC countries has led to an increase in the demand for datacom network gears and services. The company estimates the total market space for datacom in APAC to be over US$5 billion, growing at a CAGR of 5-8%. Huawei has identified this potential and has an articulated strategy to capture this fast-growing market.

A significant part of this strategy involves establishing dedicated product line management (PLM) teams based in major APAC markets. These teams work closely with partners and customers, driving R&D of products and solutions cater to local requirements. By understanding and addressing the unique needs of APAC customers, Huawei have helped clients expand their data center capacities with minimal service interruptions.

Efficient supply and delivery, considered essential to Huawei’s strategy, has enabled the company and its partners to successfully deliver urgent projects within 4-6 weeks in the past year.

 

Adapting to Evolving Markets: Dedicated Solutions for Commercial market and Channel Distribution business

In its recent Asia Pacific Partners Conference, Huawei launched several flagship products designed to meet the needs of large enterprises in the APAC market. This includes the CloudEngine 16800-X data center switch, an industry-first designed for diversified computing power. For the campus network domain, Huawei introduced the industry’s first enterprise-class Wi-Fi 7 AP (Access Point).

Additionally, Huawei continues to upgrade its NetEngine series routers, introducing the NetEngine 8000 F8, M14, and M6, each catering to specific customer scenarios.
In the commercial market for 2023, Huawei is targeting five major sectors: education, healthcare, retail, small business, and hotels. The company launched high-quality network solutions for each, like noise-free remote units of Ethernet switch for classrooms and zero-roaming distributed Wi-Fi for hospitals.

For the retail sector, Huawei has unveiled a high-quality retail network solution that integrates IoT convergence for Electronic Shelf Label price tags, reducing the complexity of separate IoT networking efforts.

The channel distribution business, accounting for 20% to 30% of the overall market size, has also been addressed in Huawei’s product portfolio. The company is releasing a new line of products dedicated for channel distribution, including Multi-service gateways, switches, and WLAN, aiming to help partners capture more growth opportunities.

 

Huawei launches all-new intelligent cloud-network offerings at Asia Pacific Partners Conference 2023

 

Building for Tomorrow: Enabling Partners in APAC

Huawei is not only providing advanced technological solutions, but also fostering local talents through training more Huawei certified Internet engineers and network architects. It organizes the Huawei IP Club, where engineers can exchange experiences on how to propel the digitalization process.

To further support its partners, Huawei has rolled out platforms and tools that include traditional marketing materials, online courses, as well as network planning, simulation, and validation tools. This proactive approach towards partner enablement underlines the company’s commitment to its slogan, ‘Together, We’re Building for Tomorrow’.

With its impressive growth trajectory, pioneering products, and enduring commitment to partners and customers, Huawei’s future in APAC looks promising. As the company innovates and expands its datacom portfolio, it continues to shape the industry in the APAC region and beyond.