Huawei's enterprise unit eyes $50bn revenue
Huawei Technologies has adopted new positioning that will see its enterprise and carrier business groups unite to drive growth, and has targeted $50 billion in revenue by 2023.
This was revealed by Qui Heng, president of global marketing for Enterprise Business Group (EBG), sharing the strategy for the Chinese vendor's enterprise unit at the Huawei Global Analyst Summit, in China, this week.
The Huawei group is divided into three main business arms: carrier, enterprise and consumer. In 2018, the enterprise business recorded 23.8% year-on-year revenue growth, while the carrier business declined by 1.3%, according to the company's latest annual report.
Huawei states in the report: "As a result of the growing sales of our high-end and mid-range smartphones, a growing share of the smartphone market, and the accelerated pace of digital transformation in our enterprise business, Huawei earned CNY204 536 million in revenue from Europe, Middle East and Africa, up 24.3% from 2017."
Heng said the company took a conscious decision to let EBG be the main engine of growth for the two business entities.
The reason behind this strategy, explained Heng, is the fact that the enterprise business is growing very fast, while the carrier business has already achieved high growth rates, which means the speed of growth is not very fast. Therefore, the company examined which business unit should be the growth driver and realised enterprise will have a stronger contribution to revenue growth, he stated.
According to Heng, in the past five years, EBG has doubled revenue every two years. In the last year, he added, revenue exceeded $10 billion. "We aim to continue this growth pace at least until 2023, and according to this pace, we may achieve $50 billion."
He added: "Huawei enterprise's new positioning is to provide ubiquitous connectivity and pervasive intelligence to government and enterprise customers, together with our partners. By creating a digital platform that integrates new ICT, we are committed to building a solid ICT foundation for the digital world, helping customers complete their digital transformation."
Huawei believes its enterprise solutions, such as AirEngine, the first commercial WiFi 6 AP, address the core challenge of digital transformation.