Industry Trends and Huawei’s Strategy 2011 Huawei Global Analyst Summit www.huawei.com

HUAWEI TECHNOLOGIES CO., LTD.

Reviewing the past for insights into tomorrow

Confucius 《 Analects of Confucius 》

HUAWEI TECHNOLOGIES CO., LTD.

Huawei Confidential

Page 2

In the last 20 years, the telecommunications industry has changed dramatically… Changed lives… Ubiquitous communication Two billion internet users Five billion mobile users



Three technical innovations 



Digital

Changed industry… 



HUAWEI TECHNOLOGIES CO., LTD.

Huawei Confidential

More international carriers and centralized markets Rise and fall of vendors

Page 3

Traditional industry boundaries are blurring…

Everything is Connected

ICT Enabled

Everything is Digitalized

Where will telecom go? Where will Huawei go?

Arrival of Digital Society

HUAWEI TECHNOLOGIES CO., LTD.

Huawei Confidential

Page 4

Telecom will be redefined in the next 10 year…… from voice to data, especially Mobile Broadband ……

from pipe to content, all media is on-line , any screen for any content ……

Telecom from people to Machines, Everything is connected (internet of things) ……

from CT to ICT, Enterprises (especially

SMB) will migrate to cloud service …..

HUAWEI TECHNOLOGIES CO., LTD.

Huawei Confidential

Page 5

Arrival of a new infotainment architecture app app



app App Platform

Cloud

Data Center



IT applications will replace voice service and web technologies will replace No.7 signal Distributed computing architecture builds huge computing capability and lowest cost

IP + Optical



Pipe



Device Personal

Family

Enterprise

HUAWEI TECHNOLOGIES CO., LTD.

ALL IP network: Ultra broadband, Ubiquitous broadband to underpin the soaring traffic (FTTx, HSPA/LTE, IP+Optical, NG-CDN etc)

Smart devices with open operation system and a variety of modality for millions of applications and many industry applications

Huawei Confidential

Page 6

Huawei’s Development Strategy

Changing trends drives Huawei’s transformation Carriers 

Customer’s requirement s are

changing: not only communication,

Help carriers to become

but also information service.

ICT service provider



Business model is changing:

Cloud computing enabled IT as a

Service which is similar with telecom services. 

Huawei’s E2E ICT Strategy

Technology is changing: new

cloud computing architecture will

Enterprises

change IT industry, just like IP

changed Telecom. 

Provide Cloud-Based

Carrier is changing: Beyond

ICT solutions and

connection service, ICT

technical services

convergence services.

HUAWEI TECHNOLOGIES CO., LTD.

Page 8

Huawei’s E2E ICT strategy and customer strategy Establish

App

in IT Solutions

App

Extension

App

in Enterprise Market

App Platform

Data Center IP + Optical

Excel

Lead

in Telecom

in Networks

Carrier Market

Brand

Expand in Devices

in Consumer

Enterprise

Personal

Market

Family

HUAWEI TECHNOLOGIES CO., LTD.

Page 9

Network strategy: SINGLE, No “generations” for 10 years app

app

app

Multi Networks One by one generation

IP+Optical Cloud

Platform Platform Platform Platform

All-IP Technologies

ADSL/VDSL/P ON/Ng-PON

Single Network Supporting bandwidth requirements and emerging technologies for 10 years

HUAWEI TECHNOLOGIES CO., LTD.

…

Appn

GSM/UMTS/ HSPA/LTE …

App1

SingleRAN SingleFAN

…

400G/ 1T

F T T x

FAN

40G/ 100G

x D S L

…

LTE/ LTE-A

P S T N

RAN

GSM/ UMTS

U G M L S T T M S E

Single Metro

Single BSS

Single OSS

…

Single Backbone

…

PON/ NG-PON

ADSL / VDSL

SingleCloud

No Generations ALL-IP enabled platforms, emerging technologies are plug and play Page 10

Flat network architecture



Flat network architecture:

Centralization, from 6 layers to 3 layers 

Enable Technologies: Huge

capacity equipments, especially WDM, Router and cloud computing 

New Cluster architecture for router

and WDM/OTN system (>200X capacity improved) 

New distributed computing

architecture for computing and storage (>1000X capacity improved)

HUAWEI TECHNOLOGIES CO., LTD.

Page 11

SingleRAN, Bandwidth is King

Broad

Close



any technologies



any frequency



1000X traffic / 10 years



flat architecture



user is closer to base

station



Smart



QoE enhancement High operation

efficiency and lowest TCO

HUAWEI TECHNOLOGIES CO., LTD.

Page 12

Cloud strategy: In line with technological evolution SingleCLOUD Other industry applications (cooperation) IDC Cloud

OSS/BSS for Cloud

Service Cloud

Virtual Desktop Virtual Data Center

IPTV App store

OSS/BSS in Cloud

Cloud Application Platform Development

disruptive technologies

Mainframes

PC

Cloud

Telecom Cloud Solution

Executive

Deployment

Cloud Operation system Virtualization

Distributed storage

Parallel Computing

Automatic Management

Cloud-Oriented Hardware VirtualNon-blocking Distributed Power Server Network Storage Security& cooling

HUAWEI TECHNOLOGIES CO., LTD.

Cloud Operation Solution

Page 13

Cloud Datacenter Solution

Cloud ideas will enable a dynamic/virtual network Key features of cloud computing

Cloud ideas

Cloud RAN

Cloud Service Router Fabric Rack

Interface Racks

…

Service Process Racks

&

fiber

Shared OLT BBU



On-Demand



Dynamic sharing



among SR/BRAS/RNC/G GSN/SAE

Cloud Router: shared



Cloud RAN: centralized

resource pool among

BBU pool, collaborative

SR/BRAS/GGSN/SAE

RRM

HUAWEI TECHNOLOGIES CO., LTD.

Page 14

Device strategy: Leveraging new opportunities of a “Smart World” Smart Phones

Mobile Internet

Digital Home

MBB Devices

Smart and Simple

Home Devices

Internet of things

Big trends in telecom industry

HUAWEI TECHNOLOGIES CO., LTD.

Main Player

M2M Module

Page 15

No.1

Smart strategy: E2E synergy, user experience User Insight and Device Aware

App App App App 

Cloud Platform User Insight

Device Aware





Always On-line

PCRF

I get what I want (Personalization) Give me what I want (Accurate Marketing) Consistency experience (3-Screens)

BRAS

GGSN

Synergy Solution

Smart Network RNC

OLT DPI/CDN 

NodeB

On Demand

NodeB

MDU

MDU

Consistency

Best User Experience

HUAWEI TECHNOLOGIES CO., LTD.

Open OS



Monetizes Traffic Growth (Excellent Operation) ; Maximize bandwidth utilization (Cost Saving)

Network Insight, Service Aware Page 16

Summary: Expanding the Horizon

Telecom Trends

Telecom is transforming

Huawei Strategy

Huawei is transforming from CT to ICT industry

from Voice to Data from Pipe to Content from People to Machines from CT to ICT Services

HUAWEI TECHNOLOGIES CO., LTD.

from carrier to Enterprise customer from multi-NW to no generation network from feature phone to Smart Devices

Page 17

The Journey Starts Here… Lao Zi 《Tao Te Ching》

HUAWEI TECHNOLOGIES CO., LTD.

Page 18

Thank you www.huawei.com

HUAWEI TECHNOLOGIES CO., LTD.

Page 19