Huawei Ren Zhengfei:

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					Huawei Ren Zhengfei:
First, some practice Huawei
Huawei, as a high-tech enterprise, beginning from the start, we always adhere to the
commercial success of market-oriented, all investments, all managed to improve
products in the market focus, business success, especially away from the commercial
success is driven, the only technological innovation. Such blind pride in innovation,
we have no source of funding for companies, no different from suicide.
Huawei has in the past 18 years persist into each of mo re than 10% of sales on R
& D, especially in recent years, there are more than 25,000 employees
engaged in R & D, capital investment is maintained at 70,80 billion yuan a
year , after 18 years of hard work, so far, Huawei's products is not an
original invention Xing, Zhu Yao made of, made of yes in the West on the
company's 成果 some Gongneng, Texing on the Gaijin and Jichengnengli
of Tisheng more is reflected in the engineering design, engineering implementation of
technological advances, and foreign competition for decades, even centuries of
accumulated Xiangbi still a big gap; 对于 we lack core technology, Huawei 只是
through the purchase of ways and means to pay licensing fees to realize the products
in the international market, market access, and gradually in the competitive market to
survive, than their other ways to circumvent these patents to achieve, the cost is much
lower, Because of our pay, but also realize the peaceful coexistence with Western
2004 Love for the company to market a WCDMA distributed base stations, base
station compared to the traditional carriers annual run / operation and maintenance
costs include venue rentals, electricity and so can save 30%, bringing value to
customers also reflects the competitiveness of their products to gain by customers and
choice. This revolutionary technology is not d istributed base station, there is too much
technology is not gold content, only works on the improvement of technology only.
In fact, in product engineering implementation technology, we often encounter a
problem, including algorithms, cooling technology, process technology, energy,
energy conservation, etc., have often become an advantage in the competition
obstacles. To solve these problems and overcome obstacles to development, we are
not entirely self-development, because such self-developed, and no early market
opportunities, or rivals in the market to build an advantage, we can not make profits in
a competitive market, Therefore, we often used to buy technology and build a way to
shorten the gap between the leader.
We have a share of the world's leading and take the first product, the
functionality, performance on a key technology beyond its competitors, is a foreign
company by purchasing the technology acquired. We are looking for and select a long
optical transmission technology and product solutions for research is leading
manufacturers, the company's total investment has exceeded $ 70M,
primarily found in the backbone of its long- haul optical transmission systems,
network status is very important to an analysis that its products and technology with a
high market value, and finally decided to buy the technology. Through technology
transfer and secondary development, and the necessary legal procedures, in just 9
months time to complete the integrated development, the key to the success ful launch
of the application of new technology products, to achieve a high capacity, long
distance (4600 km) without electrical relay optical transmission. 03 Since the
introduction of the solution, in the relevant market, rapid development, from the
initial long-distance transmission manufacturer worldwide unknown, to 2005, has
rapidly grown into the world market in the first long-distance transmission
manufacturers, and maintain strong status, particularly noteworthy are: to rely on
excellent value for money, we in Latin America's largest fixed operator
Telemar's 653 optical fiber systems, rely on more bandwidth than other
manufacturers able to achieve a market breakthrough transmission applications.
Huawei clearly understand that we technically need a low profile and have to admit
that a number of leading international companies, this huge gap is created by history,
on the one hand, due to the support of innovative mechanisms developed countries,
universal community of innovative, technology is relatively easy to obtain; the other
hand, as we are the founding period of the initial stage, some foreign patent has
already formed, either the system or technology to achieve the principle of details,
international leaders have been leading a lot. City, "the old whetstone
strong nomogram Qiao Yi and angry Chen larva harmonic ∩ summer Metaplexis
stauntoni logo plus Fortunately, Sapporo Wu scraping Rhythm cutting Mu Pan
dragged down lining Metaplexis stauntoni call Du appropriate harmony. Yi invasion
command type ü Almost school Ц funny Xia Miao M sulfone sha Yan Mang beat
Metaplexis stauntoni Wong ditch lemon Harmony "halo Rhythm and color
intensity nomogram storage shortage glycosides approach of taking the shot Fu ┱
scraping Rhythm cutting neon harmonic】 cent pure ┱ scratch Yi cut incorporated
Chan cent pure mistaken halo Yi sheath mood Yan model Liaoning prosperous and
shoot Yue Meng Yi cutting South Hui Zepanpingsou Shannaopubao Teng Ao
Huawei has always respected other people's knowledge of results and
intellectual property rights, but also to protect their intellectual property. Huawei in
good faith with a number of Western companies reached in accordance with
international practice and cross- licensing negotiations on intellectual property rights,
we in many areas and the corresponding number of product manufacturers to pay
licensing fees by way of cross- licensing agreement was reached. Broadband products
DSLAM, Alcatel invention, we passed two years of patent cross- licensing
negotiations, has other companies have reached a licensing, we will pay a fee in return
is a global Xiao Shou Xiao Chu a barriers, through Nuli Our share of the global
DSLAM market, the second. International market is a rule of law environment, but
also a full case of the environment, Huawei has valuable experience in the future will
not be overwhelmed by panic. Huawei is still the future to achieve economies of scale
in overseas revenue, without licensing agreement with Western companies and thus
create a peaceful environment for development, the plan can not be achieved. We pay
a licensing fee, but we have also given greater value and faster growth.
Today, because of technical standards for open and transparent, the future is hard to
have a company, a country based on patents held by absolute advantage, that the
decentralization of key patents, cross- license those patents to the foundation,
cross- license patents to each other even more pervasive. As the Internet developed, so
that invention of a more extensive and more easily. We are fully aware of the need for
intellectual property rights into the international market "club",
intellectual property rights is an international market entry tickets, did not it difficult
to enter the high-tech products to international markets.
Although Huawei has annual sales of more than 10% to research and development, in
research funding in the order of magnitude on narrowing the gap with Western
companies are also closing the gap on the IPR, there is already a million items
Huawei patent applications, but the relative scores of the world years of accumulation
is still negligible. IPR
Investment is a strategic investment in product development, it is not as fast as you
can, in one or two years time to see the effect, which requires a long-term, continuous
process of accumulation.
We are also fully aware of the basic patent of the growth process is very long and
difficult, based on the formation of a patent is to experience a very long time, to be
patient and willing to dull, irritable, but will cause delay. The formation of the basic
patent is three feet of ice, cold day. Even the basic patent applied the growth process
also requires at least 3 to 5 years. We have initiated and established the corresponding
mechanisms to encourage the bench cold to sit for ten years, while a firm to go out
and actively integrate into the international trade organization, extensive
communication with industry counterparts, cooperation, and coordination; particularly
in industry forums and industry standards development organizations actively
involved in joint efforts for industry growth and development. While we at home and
abroad for a total of more than 10,000 patents, but we know that the real core of the
basic patent is not over, we will still function and perseverance, characteristics,
engineering implementation technology, and enhance investment, continue to oppose
the blind innovation against the Small Farmer, against self- closed, against behind
closed doors, with cooperation and self-development both in the same time to grasp
industry trends follow the industry trend, follow the appropriate rules, Accumulate,
put in order, extensive cooperation, complement each other to advance the
industry's development and progress, build a good business environment
for development.

Second, the development of Huawei
Huawei was founded in 1988, under the care of the party and the government, after 18
years of hard work by a dozen people had become the company now emplo ys more
than 60,000. 18 years, Huawei has accumulated to pay customs duties, value added
tax, corporate income tax, personal income tax and other revenue 25.3 billion yuan.
Huawei has been focused on communications in the field of device research and
development, manufacture and for customers to provide solutions after years of
struggle, today to provide better telecommunications fields end to end solutions,
products covering both mobile communications, data communications, optical
network, Guding communications, telecommunications, business applications and
software, terminals and other fields.
Huawei in Beijing, Shenzhen, Shanghai, Nanjing, Xi'an, Chengdu, Wuhan
and other places set up R & D institutions, and the establishment of
international R & D global synchronization system, in Bangalore, India, the
United States, Dallas, United States, San Diego, Stockholm, Sweden Moscow, Russia,
etc. to establish the Institute. Huawei in research and development of quality
management, full implementation of the CMM5 (international software development
and management of the highest level) and integrated product development process
(IPD) and other management processes and methods in software research and
development sector has a CMM5 level through international certification.
China is the world's largest emerging market, therefore, have gathered in
China, the world's giants, the company was founded on the door in their
own homes met the world's most intense competition, we have to slot in
the market to survive; when we go abroad expanding the international market, looking
for a look, can see the farmland fertile soil, has already snapped up by Western
companies, and only in those remote areas, unrest, harsh natural enviro nment of the
area, they move slower, into smaller, we have a slim chance of . In order to seize this
last chance, since 1996, a number of Huawei staff farewell homeland, away from the
family, went abroad, both in disease-ridden African, or scattered in the smoke is not
Iraq or the tsunami disaster in Indonesia, and after the earthquake Algeria ... ...,
Huawei people everywhere can see the shadow struggle. We have staff start in high
altitude areas, climbing mountains, the more the jungle, on foot, by 8 days, no regrets
for the customers; have employees outside the head by bandits attacked a more than
30 sewing needle, then put into rehabilitation work; have employees sleeping in the
dormitory, braving the night criminals broke into the gun to rob our people; we shuttle
somewhere in Latin America also suffered by gunmen, who robbed the entire vehicle;
even the transportation of goods, often need to hire special personnel security; the
employees survived the crash, still badly shaken they help other people to win the
respect of local government and people; also have employees injured in the terrorist
bombing, or malaria several times, continues to stick to their posts after rehabilitation;
in some countries , we have 70% of Chinese staff too malaria; we have thr ee young
African-quality staff were killed in a plane crash en route mission, left us
forever ... ....
Lack of funds, competitive CIS market, Huawei people bite the bullet, quietly for 10
years, won the first single from 38 U.S. dollars contract, the accumulation of small,
annual sales of 600 million U.S. dollars by 2005, become an important market. In the
more stringent European market has experienced three years of certification, we
finally by the British Telecom's examination, a British Telecom Zhong Yao
partners; Wei Huo De Mou Middle East telecom operators in the Ren Ke, Ji Mian Dui
telecom equipment manufacturers in the world competition, we braved the 60 degree
heat outside site work, for several months, relying on the sincerity of dedicated
customer service, after two years of persistence, finally opened the Division I
world's first 3G commercial bureau ... ...
After years of unremitting struggle and struggle, Huawei gradually made some gains
in overseas, overseas revenue in 2005 exceeded the national, although some advanced
operators entering the market, but we more than half of the market space is basically
there is no breakthrough, particularly in North America, Western Europe and Japan.
We choose the direction in which the industry but also in a great many changes, we
have been living there has been a crisis of survival in a crisis, the recession and the
collapse of Huawei will surely come, and only constant vigilance of our own, we can
progress, can delay or prevent the decline and collapse to come.

Third, the face of the times we live in a surplus of products, Huawei is still hard work
people have to work hard. There has never been a savior, not by god emperor, to
create our happiness depends entirely on our own.
The growth of Chinese hi- tech enterprise full of rough and thorny road doomed. Have
chosen this path of life, hardships and toil is doomed, but also more valuable.
In China, in the high- tech field to do an international business, global markets, we
have no experience can learn, completely rely on to explore, in the hustle of the
market, competition in the brutal learning;
In China, tens of thousands of young intellectuals to do a main business, competition
is worldwide and world-class level, we do not have any successful practice can learn
In China, doing a business, competition is the world's developed countries,
and world-class giants, who have for decades or even a hundred years of
accumulation, with Europe and the United States since the Fa Zhan Shu centuries
formed the industrial base and industrial environment, the developed
world's business foundation and strong human resources, social
infrastructure, there is a world-class professional and technical personnel and research
and development system, there is abundant capital and world-renowned brands, with
strong market position and customer base, with world-class management system and
operation experience have covered a large global customer marketing and service
network. Faced with this competitive landscape, the face of such technology and the
market "eh loyal Yi Wei Wei Tse knock command fishy shoot more scoop
18 years, our senior management team work around the clock, and many high-ranking
almost no holidays, all 24 hours can not charge their cell phones, anytime, anywhere,
are dealing with the problems occur at any time. Now, even after the jet lag because of
globalization, always Lian Zhouzhuan handle affairs and meetings. We have not
accumulated large international company's market position for several
years, networking and brand, nothing to rely on, we only have a little more fight than
the others, only in coffee and other leisure and fitness of the time working hard in
ecstasy Otherwise, we can not catch up with the pace of its competitors simply can
not narrow the gap with them.
Experienced difficult times early 90s, capital and technology in all aspects of the
conditions of scarcity, we bite the eggs in one basket, closely rely on the collective
struggle to bring about, day and night research, using pressure principle, key
investment breakthroughs, we finally developed our first communication devices -
digital program-controlled switches.
The company started off, we have no money, yes entrepreneurs they put their wages
and bonuses into the company, each person Zhineng get very little return, issued IOUs
pay Jing Chang, the majority of cadres, staff long rental Zai Farmers rooms, with
limited funds to purchase raw materials, purchase of laboratory tests with the
oscilloscope, Huawei is the older generation who "production first
life" of the dedication, the company only survived the most difficult years,
supporting the company's survival, development , only today's
Huawei. Until 2001, we took out part of the profits to improve the lives of our
employees, so that some of our staff to lift the basic life worries.
Because we are young, can not be avoided in the understanding of the solution is not
accurate, can not be avoided in the design, implementation, there are naive and
defects. In 1998, the switch User Board as unreasonable design, resulting in the whole
network of more than 100 10 000 User Board for rectification; in 2000, optical
network equipment for power supply problems, in order to the customer responsibility
and integrity, our recovery from the Internet, replacing the 20 more than 10,000 board,
the board piling up in warehouses, resulting in losses of over one billion; Western
Europe, an operator, because our customers understand the large deviation, resulting
in timely delivery of not only compensation under the contract; a mobile operator in
the Asia-Pacific business, choose our RBT system, due to extremely tight schedule,
leading to low quality, resulting in low-level errors, such as mandarin ducks lines,
causing a great impact to the customer; VPN system does not consider the design of
escape, local failures lead to system disruption, the customer can not use of business;
system operation and management rights is not based on user role-based design but,
due to excessive authority, misuse leading to paralysis of the entire system and so, no
not because we are young and naive, because this young and naive, so We must pay
more only, system design and development to be replaced, the last work was to waste
a. To also be able to keep up with the rhythm of the market, in order to also be able to
gain a competitive head start from the market, we can only give more effort than
others to work overtime tired and spread a mat in the office sleep, woke up to
continue dry; ideas gone, spread a mat on sleep in the office, with the idea to continue
to dry, so it has created a cushion Huawei cultural heritage.
Since 2001 the Internet bubble, a sharp decline and the shrinking market, especially in
2002, Huawei deeply felt the winter's cold and biting. That year, our sales
growth is negative, the company many employees as temporary disadvantage, have
left the company, more so Huawei matters worse, many employees left the company
when away from Huawei's source code, schematic design of the core
business confidential information, the outside or leak their companies or paid to the
same industry for imitation, this zero-cost, no investment in imitation, in the market,
Huawei has also formed a comprehensive direct competition, almost causing Huawei
the company's disaster.
Because of the market situation and development of misjudgment, we missed a lot of
available earnings and profits, market opportunities; In the absence of the bubble
brought low accurately determine, on the local market and product blindly optimistic,
resulting in 500 million yuan of device inventory and backlog ; NGN loss of more
than 1 billion so far, 3G has loss of over 4 billion, do not know when to be returned.
Live in the hostel two dollars, to attend a lecture to eat instant noodles, sleeping room,
we often experience; with a client where we travel in the same rival engineers, live in
the most high-end local hotels, how much we envy; in the same a
competitor's engineers work room, an afternoon working hours left to pack
up, and we still Hangchihangchi to dry, we envy.
We are living through a collective take a pay cut to support the company; we work to
make up through ecstasy caused by the fault of o ur young; we went through the house
wife at home do for the company overseas, exploiting the boundary to add the winter
jacket. Concerted efforts across the company hardships, we quite up to now.
Since the company was founded that day, we have experienced untold hardships, little
by little, win orders and rural markets; the other hand we are out of their income into
research and development on the. We were the world telecom giant Ericsson, Alcatel,
etc. as much as 200 times the size difference. Through perseverance and hard work bit
by bit, we spent more than ten years, finally in 2005, sales topped 50 billion U.S.
dollars, but the gap between communications giant still several times. Last less than a
year, the industry several major mergers, all of a sudden to have narrowed the gap has
widened sharply. We just expect to get some breathing space, backs straight along, pat
pat the soil body, did not have to start thinking more long trek ... ...
2005 Spring Festival Party, the "Thousand-hand Bodhisattva"
has given us quite a stir. Those not hear voices, do not know what life might be the
sound of children's coordination in the absence of any circumstances, then
the formation of uniform motion, then the exquisite performances, which can imagine
the hardships and pay. Huawei tens of thousands of employees, is the same with them,
after untold hardships, it made a little progress today. But we still think that Huawei
has not succeeded, Huawei still far from successful, Huawei's international
market just had improvement in the external environment facing more severe than
ever. Many overseas markets have just climbed up the beach path, at any time will be
back to the sea; industry and the market changing, just some of the technology and
experience accumulated once again faced with self-denial. At this crucial moment, we
can not distracted and can not be shaken or even abandon their fundamental, whether
now or in the future, apart from hard work or hard work.