VIEWS: 6 PAGES: 2 POSTED ON: 9/1/2010
The gap between Cisco and Huawei In the previous article, I quoted a wide spread network of Ren Zhengfei and Gerstner&#39;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&#39;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&#39;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&#39;s operating system standard, and Microsoft Windows the same, this thing is not open source, but Cisco&#39;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 &quot;The Internationale&quot; as sung in the world of Intel Nile (Internet), it has been achieved, but it actually is based on Cisco&#39;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&#39;s patent application number has been far ahead in the domestic enterprises, and this is where Huawei&#39;s core competitiveness. However, most of Huawei&#39;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: &quot;If we stop the advance, Huawei will not find the direction.&quot; 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&#39;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&#39;s leading A &amp; D (M &amp; A and development) strategy. Huawei&#39;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&#39;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&#39;s monopoly only be counted a true success. In the final analysis, be able to engage in internal R &amp; 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.
"The gap between Cisco and Huawei"