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Huawei flexes muscles in enterprise business

October 28, 2011 | Hogan Keyser
The Jakarta Post, Jakarta | Fri, 10/28/2011 -- Huawei Technologies Co. Ltd, China's leading vendor of technology,communication and information solutions, is eyeing a bigger stake in the enterprise service sector.

A top Huawei executive says the company has increased flexibility in the enterprise services sector thanks to bigger investments made recently in its research and development division, and the company expects bigger revenue from expanded businesses in countries outside China.

By 2015, Huwei plans to scoop between US$15billion and $20 billion in sales from the enterprise services sector alone, as compared to $4 billion this year and $7 billion next year, Huawei Enterprise Business Group president William Xu said in an interview in Geneva, Switzerland, on Thursday.

"Our aim is to become a key player in most of our product lines," William said during the launch of a new video conferencing product called Telepresence 2.0, at the ITU Telecom World 2011 conference.

Telepresence 2.0 is an interactive high-definition video conference calling facility that operates on android-based tablet computers.

William said the software was safe and used relatively low bandwidth, thus ensuring more efficient and effective operation with less physical presence.

Huawei, which runs three business groups -- carriers or network infrastructure, devices and enterprises -- is also targeting to secure a global turnover of $80 billion by 2015.

More than 40 percent of hundreds of thousands of Huawei employees work in research and development in various countries.

Established by Ren Zhengfei in 1987, the company has become one of the top global vendors in the technology, communication and information technology solutions.

Meanwhile, Ronald Raffensperger, Huawei's director of cloud computing marketing said the cloud computing business was continuing to expand,particularly in areas outside China. Until now Huawei's main market for such business has been in China.

"Cloud computing is like new kind of playing field in the business [...] We found that interest among operators as well as enterprises [in the cloud computing business] is very high," Rafensperger said.

He added that the cloud computing market would continue to grow significantly.

"Next year, we target to expand our market outside China by 60 percent from 25 percent at present," Rafensperger said without detailing the contribution of the cloud computing segment to Huawei's total revenue.

In order to support its aggressive cloud computing business plan, Huawei expects to double its engineers working in the business to 4,000 by the end of next year, from 2,000 at present.

"We've put lot of people into research and development in efforts to meet that target," Rafensperger said.

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