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Huawei to Corner 10% of India Enterprise Technology Market by 2015

May 26, 2012


Source: Business Standard

Telecommunications equipment giant Huawei Technologies, which registered reveues close to $180 billion in 2010, said on Thursday that the company is planning to expand exponentialy its enterprise business In India and is in talks with the state governments of Gujarat and West Bengal in this regard.

The enterprise segment in India, according to Eric Yu, president of the enterprise business for Huawei, is pegged at around $10 billion-distributed among the top ten enterprise players, which includes globals players like IBM and Hewitt-Packard among others. The market is growing at 15 per cent.

“We are looking at cornering at least 10 per cent or $1 billion in reveues of this market by 2015. We also plan on increasing our employee strenght in the vertical from the present 200 to over 1,000 people in the next 5 years”, Yu told Business Standard.

As of now, the Huawei’s enterprise vertical which began operations in September is expected to touch the $100 million mark in six months and the $200 million mark in a year, Yu said.

It may be noted that the entreprise segment in the technology space has already seen some movement with the increasing presence of multinationals like Orange as well.

According to Yu, the space in India is poised for growth which will be driven by three verticals namely the big corporations, the small and medium enterprises and the government, all of which will contribute equally to the growth.

According to Yu, Huawei has an advantage in the Indian market given the fact that only Huawei has the capacity to integrate hardware and software services, which will ultimately help reduce the cost of the client.

“Other players need to depend on partners. We, on the other hand, are capable of providing integrated services which are cost effective. Our services will be most affordable in the market,” Yu explained saying that Huawei has the capability to integrate services on mobile and tablet.

One of the key verticals, that the company is eyeing, said Yu, is the e-education and e-learning space, where the company’s play will be dominated by providing access on a unified platform across mechanisms like the mobile, tablet, tleveison and DVD.

When contacted, industry insiders seconded the opinion that the enterprise segment is expected to witness good growth percentages.

“If we believe that India as an economy will grow, we can take for granted the growth of two sectors-that of the banking sector and that of the communication infrastructure sector. This will be driven by spends by the government which are expected to be in the range of billions of dollars and the consumer segment as well,” said Bala Mahadevan, chairman, Orange India.