Huawei Enterprise Business
The Future of Networking: What’s Old is New Again
Sustainable Growth
Revenue (USD in Billions)
38.7
(CNY243.4 bln)
32.4
(CNY203.9 bln)
 Leading global ICT solutions
provider
27.6
(CNY182.5 bln)
 Serving 1/3 of the world’s
population
21.5
(CNY146.6 bln)
18
 “Corporate Use of Innovation”
(CNY123.1 bln)
12.6
- The Economist
(CNY 92.2 bln)
 “5th Most Innovative Company”
- Fast Company
2007
2008
2009
2010
2011
2012
(Target)

Huawei releases its Annual Report with consolidated financial statements audited by KPMG
HUAWEI TECHNOLOGIES CO., LTD.
Page 2
Globalized Operations
23
14
R&D Centers
Regional HQ
45
140+
Training Centers
Branch Offices
140,000+
Employees
44% in R&D
$30B
45
Serving
of the world’s top
50 operators
Telecommunication
and Technology
Provider
32
Innovations
Centers jointly
operated
with customers
HUAWEI TECHNOLOGIES CO., LTD.
Page 3
Huawei, A Global Company with Expertise Worldwide
Germany
Holland
Hungary
Huawei Headquarters
Romania
Mexico
UAE
Bahrain
China
Accounting Share Center
Bidding Center
(Planning)
India
Brazil
Malaysia
Supply Center & Hub
R&D Center
Training Center
Mauritius
Argentina
Technical Support
Center
 140,000+ employees with
150+ nationalities worldwide
 23 R&D centers
 45 training centers
 14 regional headquarters,
operations in 140+ countries
Localized Operations Powered by Global Resources
HUAWEI TECHNOLOGIES CO., LTD.
Page 4
Rapid Growth of Huawei Enterprise Business
Rapid Increase of Revenue
Contract Sales:
Revenue :
YoY Growth:
$3.8 Bn
$1.59 Bn
57.1%
Direct Sales and Channel Sales
Direct Sales
35%
Certified Channel
47%
Operator Resell
18%
Open and Transparent = Strong Ecosystem
Channel
2200 + distributors, ISVs, VARs, VADs, SIs
Solution Partner
Nearly 1000 partners in products and technologies
Service Partner
224 service partners and 5000 certified service engineers
HUAWEI TECHNOLOGIES CO., LTD.
Page 5
The IT Organization and CIO are under Huge Pressure
Security
Budget
Regulatory
INNOVATE LESS!
LEAD & DIFFERENTIATE
INNOVATE MORE!
CONSUMER
MARKETING
ECOSYSTEM
PARTNERS
END USER
CEO
HUAWEI TECHNOLOGIES CO., LTD.
Page 6
ENTERPRISE
FUTURE
New Class of Enterprise Problems and Requirements
DISTRIBUTED
FEDERATED
INTUITIVE
Does your IT system scale to
the number of employees
you have, or the number of
customers you want?
How will your IT
environment interact with
your entire ecosystem?
Are your IT end customers
IT professionals, or are
they teachers, doctors,
or executives . . . ?
HUAWEI TECHNOLOGIES CO., LTD.
Page 7
New Class of Enterprise Problems and Requirements
EXTENDED
MOBILE
VIRTUAL
Will all of your IT services
happen within your own
IT environment?
Can you identify who
won’t be mobile in your
enterprise environment?
Can you afford dedicated
hardware and software for
every person, in every
environment, all the time?
HUAWEI TECHNOLOGIES CO., LTD.
Page 8
Future Enterprise Driven By Three Technical Trends
Consumerization of IT
Mobilization of IT
Distribution of IT
The Integrated Enterprise
HUAWEI TECHNOLOGIES CO., LTD.
Page 9
ICT Intersection
CONSUMER
CLOUD
CARRIER
HUAWEI TECHNOLOGIES CO., LTD.
ENTERPRISE
Page 10
Future of IT/Networking
The Future of IT/Networking
TOPOLOGY SHIFTING
DISTRIBUTED
D ATA C E N T E R S
Private Data Center
MOBILE DEVICES
AND USERS
NETWORK
Massive Core
Public Data Center
HUAWEI TECHNOLOGIES CO., LTD.
Back Haul
Wired
Access
Aggregate
Wireless
Access
Page 12
Where Will the DC Exist? Cloud (Public, Private, Hybrid)
T O D AY
EVOLUTION
I M PA C T
PRIVATE
Analytics/Big Data
Communication
Clouds
Media
Clouds
Enterprise = Intranet
Internet
COLO
Data Center
Cloud Gateway
Storage/Compute
Clouds
Security
Clusters
Desktops
Clouds
HUAWEI TECHNOLOGIES CO., LTD.
Page 13
What Will the DC Network Be? Agile, Precise, Diverse
T O D AY
EVOLUTION
I M PA C T
 Homogeneous flat topology
 Increased virtualization
 Capacity oriented
 Emergence of 40/100/400/1000Gb cores
 1Gig LOM , 10 gig core
 LOM (10GIG) -> 40/100G LOM
 Edge security model
 New topology models (SPB, TRILL,
OpenFlow)
 Some virtualization
 Costs and power consumption
per port may increase
 Core scalability of switches
will need to be multi TB
capacity
 New programming models (restful, SDN)
 Convergence to all Ethernet transport
 Extension to public cloud
 Physical and Virtual Switch Layers and
Interworking Topology
 SDN Rationalization and
Interworking
 WAN interconnect will be
100G+
 Topology will become more
complex and heterogeneous
 Security scale may be the
bottleneck
HUAWEI TECHNOLOGIES CO., LTD.
Page 14
Where/How Will Data Be Stored? Hybrid Storage
T O D AY
SAN/NAS
EVOLUTION
I M PA C T
SAN/NAS/CLOUD
 Tape back up goes away (VTL)
 Fail in place operation
 100s of PB scale +
SAN
NAS
 Each type of content maps to
proper storage (scale, cost,
structure, API. . .)
Cloud
OR
S3
VSAN
 Possible shift to virtual
SAN/NAS based on cloud
storage platform
VNAS
Cloud
Storage
HUAWEI TECHNOLOGIES CO., LTD.
Page 15
What Will Compute Look Like? Diverse & Virtualized
T O D AY
EVOLUTION
I M PA C T
Rack Scale Compute
 Increased application
flexibility
Specialized Clusters
 Increased software
complexity
PROCESS LEVEL VMS
APPS
APPS
OS
OS
X86 CORES
Server
HUAWEI TECHNOLOGIES CO., LTD.
X86
ARM
 Heterogeneous
Virtualization
SEC
 Orchestration challenges
Server
X86
X86
Server
X86
GPU
DSP
?
 Cost will only be
controllable with use of
public DC capabilities
 VDI/Desktop cloud use
increase for mobile and
fixed clients
Server
Page 16
Who Will Use the Data Center? Mobile Clients
T O D AY
EVOLUTION
ENTERPRISE NET
I M PA C T
LTE/Carrier / Ethernet Access
 User/device diversity
will increase with BYOD
BRANCH
OFFICE
DC
Campus
net
BRANCH
OFFICE
 User net cap will be
limited by mobile
network capacity
DC
DC
Mobile
CL/DC
Virtualized
cloud
BRANCH
OFFICE
HUAWEI TECHNOLOGIES CO., LTD.
 User count will
increase to match
customer count
Page 17
 New security issues
(dual personality
devices)
 I N E V I T A B L E
Who Else Will Use the DC? Machine to Machine
T O D AY
EVOLUTION
I M PA C T
A DIFFERENT KIND OF USER
 User count will increase
dramatically
Management Layer
 New security models will be
needed (user-less devices)
 Session count will increase
PERSON
 Bandwidth will vary greatly
(video sensors vs HVAC
example)
SOFTWARE
DEVICE
HUAWEI TECHNOLOGIES CO., LTD.
 Will introduce new applications
to the DC to support IoT
Page 18
How Will We Protect the Network
Scale + New Models Key
T O D AY
 Limited internal DC security
 Edge focused model
 Physical security
 Traditional backup/protection
 Basic intra DC security
 Basic edge access control
EVOLUTION
I M PA C T
 Incorporate MGMT into one model
(restful, orchestrated DC mgmt – net,
storage, compute)
 Edge security must scale to 1Tb+
 Security as and between virtual services
 Backup models will fail to scale
(replaced by Fail in Place)
 Enterprise IDM, policy and roles will be
projected into public cloud services
(Cloud GW)
 User diversity and scale will increase
security complexity
HUAWEI TECHNOLOGIES CO., LTD.
Page 19
 Investment in DC security
will increase
 External interworking will
become necessary to
support mobile and
distributed services
 Mgmt complexity may
simplify with integration of
network into DC
management
 Security scale may be the
bottleneck again
Does This Remind You of Something?
 Centralized Data Processing, Storage?
 Thin Clients?
 Minimizing the Role of Network?
IT SHOULD!
HUAWEI TECHNOLOGIES CO., LTD.
Page 20
Many Attempts to Do This
SNA
THIN CLIENTS
W E B P O R TA L S
Mainframe
Network
HUAWEI TECHNOLOGIES CO., LTD.
Network/
Internet
Internet
Page 21
V2
Lessons Learned
CoS and priority are
usually good enough
2
1
The network is important
– No matter how fast, it’s
never fast enough
4
Scale kills/aggregation solves
3
– Flows, sessions, states, . . .
exceeds ability to manage
5
HUAWEI TECHNOLOGIES CO., LTD.
No matter how much you
want predictable static
structure . . .
it never happens
– People are unpredictable
Don’t assume bandwidth
symmetry
– Capacity required change
unexpectedly
– Both amount and direction
Page 22
“An expert is someone who
knows some of the worst
mistakes that can be made in his
subject and how to avoid them.”
- Werner Heisenberg
“Physics and Beyond”
HUAWEI TECHNOLOGIES CO., LTD.
Page 23
Thank You