Huawei eyes major enterprise growth in ME

Enterprise division targets $600m revenues in 2012
Dong Wu sees huge potential for enterprise growth in the Middle East.
Dong Wu sees huge potential for enterprise growth in the Middle East.

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Chinese telecoms vendor Huawei expects to grow its enterprise business in the Middle East by between 80-90% in 2012 to reach revenues of up to $600 million, according to Dong Wu, vice president, enterprise business, ME region.

Huawei’s enterprise division in the Middle East achieved revenues of about $320 million in 2011, with a year-on-year growth rate of about 85-90%.

The unit saw particularly strong growth in the Gulf and Iraq, with government projects and the oil and gas sector driving much of the growth, Dong told CommsMEA.

“From our point of view we see big potential for enterprise market in the Middle East. If we compare ME with other regions we saw the growth rate is much higher here than any other region,” he said.

He added that Huawei is also planning to develop its partner system this year by signing agreements with systems integrators, distributors and resellers to “ensure the long term and sustainable growth” of its enterprise business. On March 18, Huawei announced that it had signed Secureway Network Distributors as a regional partner for its enterprise solutions division.

“While telecoms we sign a contract with the customer directly, in enterprise we need the systems integrators and the distributors in the middle,” Dong said. “This year we will focus more on building the partnerships.”

Dong added that Huawei would be “very selective” in its choice of partners and stressed that it would only sign agreements with a small number of partners for each country. “We don’t have exact figures but compared to other vendors we will be very selective,” he said.

“We will not have hundreds of partners, we will have a few partners in each country to cover the customers, to ensure our partners can get enough profit and they can grow up step by step and have the long term success.”

Huawei has made a concerted effort to increase its business in the enterprise space through channel partners in the past year. In February 2011 it signed a deal with INTC as its regional-level master system integrator and “go to market” partner for enterprise for the GCC, Lebanon and Jordan.

Dong said that the growth rate for the global enterprise division was also around 90%. The division posted revenues of about $3.8 billion in 2011, and expects this to rise to some $6.5 billion in 2012.

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