Huawei Firmly Entrenched as Tier-1 Vendor in Europe, say Customers
In the span of a few years, Huawei has become a major force in European telecommunications. ZTE is strong in EMEA’s developing regions and is becoming a major player in Western Europe as well. Ovum has tracked these two vendors carefully over the years, with a focus on market performance and technology strategy. In this report, we present the results of a series of detailed customer surveys, where we talked to tier-1 European customers directly about their relationships with, and perceptions of, the Chinese vendors.
Executive summary
In a nutshell
Ovum view
Huawei and ZTE have made enormous progress in the past ten years
Chinese vendors have entered the mainstream
Huawei and ZTE are strong in customer-driven innovation
Security concerns are likely overblown, but SPs can protect themselves proactively and encourage transparency
Summary of interview results
Introduction
Interviewee description
Background of deployment
Price and performance both required
Chinese not typically the “lead” vendor
Quality issues compared to other vendors
Customers happy with Huawei’s overall quality; no input provided on ZTE
Price issues compared to other vendors
The Chinese continue to be price leaders, but price is no longer at the center of market strategy
“How do they do it?”
Technology issues compared to other vendors
Chinese vendors’ technology is on par with that of incumbent vendors; eager engineers and flexible roadmaps are also positives
Satisfaction issues
Lowest with documentation, highest with after-sales support
Future expectations
The future looks bright for the Chinese vendors
Huawei and ZTE: brief recap of recent growth
Chinese vendors not a homogeneous class
Huawei as the primary vendor of interest – recent developments
Language matters
Other aspects of Huawei’s globalization
Huawei’s approach to R&D/innovation
ZTE also an accomplished supplier worth working with
Both vendors have strong relationships with Chinese banks
Both Chinese vendors gaining share of global telecom infrastructure market
Chinese vendors now in top 3 of several segments globally
In a nutshell
Ovum view
Huawei and ZTE have made enormous progress in the past ten years
Chinese vendors have entered the mainstream
Huawei and ZTE are strong in customer-driven innovation
Security concerns are likely overblown, but SPs can protect themselves proactively and encourage transparency
Summary of interview results
Introduction
Interviewee description
Background of deployment
Price and performance both required
Chinese not typically the “lead” vendor
Quality issues compared to other vendors
Customers happy with Huawei’s overall quality; no input provided on ZTE
Price issues compared to other vendors
The Chinese continue to be price leaders, but price is no longer at the center of market strategy
“How do they do it?”
Technology issues compared to other vendors
Chinese vendors’ technology is on par with that of incumbent vendors; eager engineers and flexible roadmaps are also positives
Satisfaction issues
Lowest with documentation, highest with after-sales support
Future expectations
The future looks bright for the Chinese vendors
Huawei and ZTE: brief recap of recent growth
Chinese vendors not a homogeneous class
Huawei as the primary vendor of interest – recent developments
Language matters
Other aspects of Huawei’s globalization
Huawei’s approach to R&D/innovation
ZTE also an accomplished supplier worth working with
Both vendors have strong relationships with Chinese banks
Both Chinese vendors gaining share of global telecom infrastructure market
Chinese vendors now in top 3 of several segments globally
LIST OF FIGURES
Figure 1: Growth in global capex compared to revenues of Cisco, Huawei, and ZTE, 2003–09
Figure 2: Huawei’s average performance scores (average across all criteria is 7.5)
Figure 3: Huawei’s average score across criteria by service provider
Figure 4: Vendor shares of telecom network infrastructure market, 2009
Figure 5: Change in vendor share of telecom network infrastructure revenues, 2009 vs. 2008
Figure 6: Huawei’s share of the China optical transport market, 2005–09
Figure 7: Huawei’s share of the global (excluding China) optical transport market, 2005–09
Figure 1: Growth in global capex compared to revenues of Cisco, Huawei, and ZTE, 2003–09
Figure 2: Huawei’s average performance scores (average across all criteria is 7.5)
Figure 3: Huawei’s average score across criteria by service provider
Figure 4: Vendor shares of telecom network infrastructure market, 2009
Figure 5: Change in vendor share of telecom network infrastructure revenues, 2009 vs. 2008
Figure 6: Huawei’s share of the China optical transport market, 2005–09
Figure 7: Huawei’s share of the global (excluding China) optical transport market, 2005–09
