Learning Center
Plans & pricing Sign in
Sign Out

The gap between Cisco and Huawei


									The gap between Cisco and Huawei
In the previous article, I quoted a wide spread network of Ren Zhengfei and
Gerstner's a joke, seems like a joke, actually reflects the real world-class
Chinese companies and enterprises where the gap. A forum in Beijing over years ago,
Zhang and Liu heard complaints about a home appliance and PC blade is also thinner
than the profits of the need to tighten a towel ability of water, which is no way to
things, Who is our company's low-end value chain what?
Huawei is currently the enterprise value chain, struggling to advance high-tech
entrepreneurs, but even so the Chinese company Huawei's leaders, leading
companies like Cisco still a gap. I thought, the difference may be reflected in the
following areas:
First, rule-making ability. As the saying goes first class standards of corporate sales,
this view is not the slightest mistake. Cisco holds the IOS standard, which in fact is
the Internet's operating system standard, and Microsoft Windows the same,
this thing is not open source, but Cisco's proprietary standards. With this
standard, Cisco, through their own intellectual property strategy will block all the
competitors, because if you are not authorized by Cisco, you can not with Cisco
network equipment interoperability. Like "The Internationale"
as sung in the world of Intel Nile (Internet), it has been achieved, but it actually is
based on Cisco's proprietary standards, do not you say that this powerful
powerful? In 2003, Cisco is by virtue of its intellectual property litigation, the Huawei
out of the North American market. At present, Huawei's patent application
number has been far ahead in the domestic enterprises, and this is where
Huawei's core competitiveness. However, most of Huawei's
patents and technology or standards based upon the application of existing
technologies, both in the Internet standard, 3G standard, optical network standards or
other more extensive standards, including Chinese companies, including Huawei do
not say too much. Cisco would have proudly declared within: "If we stop
the advance, Huawei will not find the direction." Whilst this is people
angry, but really is a reality to some extent.
Second, resources integration. Although Cisco is a company with business rules
capabilities, but Cisco is not a typical technology-based enterprises. Cisco is
developing a technology almost never own the company, this statement is not me, but
Japanese researcher at the Institute of Economy, the famous scholar Haruhiko Ando
said. As we all know, many of Cisco technology not developed their own, but through
constant mergers and acquisitions of some smaller technology companies to obtain.
Through the acquisition, Cisco will be one of Silicon Valley's most
advanced technology in their own hands, and by virtue of their strong brand and
channel market forces to go out, on the other hand, Cisco is also eliminated from the
objective and its future competitors. This is Cisco's leading A &
D (M & A and development) strategy. Huawei's own strong
development capabilities, but often too much emphasis on the past Huawei to do
everything themselves, in the IT industry value chain towards more modular, today, it
is worth the candle. Huawei has also now know how to approach using collaboration
and mergers and acquisitions to develop its own, but for now the success of the case is
not too much, just only the North American optical network of small companies are
more successful acquisition fairly. Huawei's acquisition of the harbor is
more or larger symbolic significance, if the next few years be able to completely
break the carrier market, Cisco's monopoly only be counted a true success.
In the final analysis, be able to engage in internal R & D at Huawei no
shortage of talent, but only understands technology, but also as business-minded VC
talent was quite lacking.
Third, the external industrial environment. In fact, this is neither a large extent,
Huawei, Cisco is not his own decision. Cisco was born in the United States, a
high-tech industry in a very perfect state. Is the so-called rise, and the Cisco platform
on which the development of their already high, the U.S. has a good legal and
intellectual property rights, good financial and business investment environment,
there is perfect and the free movement of professional managers market (Mr.
Chambers is not the founder of Cisco Systems, but VC had to dig over the). Therefore,
many can easily do things in the United States, in China is unable to do. For example,
in the United States you have good technology, people would vote for you money,
help you start; while many Chinese entrepreneurs in early stage venture capital
shortage facing the dilemma of the time are often unassisted.
Here one may ask whether Huawei will never catch up Cisco out? I would not think
so. First, the rapid development of our country, the external industry environment is
undergoing significant changes. In many economic fields, we have been able to
influence the rules and even to some of the world participate in the formulation of
rules. Therefore, the Cisco-owned Huawei enviable external environment will
gradually have. Second, as Harvard Business School professor Christensen has shown,
when the breakthrough technology appears, the rules of the game industry tend to be
changed; and the breakthrough technology is often not the most advanced technology,
but is close to the market technology. In short, the gap between how much, how much
hope there.

To top