HUAWEI UNVEILS NEW BOARD MEMBERS

AsiaInfo Services
01-18-2011
Huawei Unveils New Board Members

SHENZHEN, Jan 18, 2011 (SinoCast Daily Business Beat via COMTEX) -- Huawei Technologies Co., Ltd., a top-ranking telecom equipment maker in China, nominated new members of the board of directors on January 15.

Sun Yafang will remain chairwoman for Huawei, while Ren Zhengfei, Guo Ping, and Xu Zhijun will act as deputy chairmen. In the meantime, Ji Ping and Fei Min, two executives that have served for the Shenzhen-based company for a long time, will withdraw from the board of directors.

The company solicited opinion on the director candidates a month before the launch of the meeting, disclosed executives for Huawei, noting that members of the existing Huawei core management team have been added to the new board of directors to beef up communication between the director board and the management team.

Huawei is looking to regroup its business structure, pointed out market observers, noting that the company is likely to divide its product-based operations into four divisions based on customers, namely telecom operators, enterprise network, terminal, and other.

Huawei will beef up the business model while loosening the right of the board director in the future to make it possible for the four new divisions to grow freely, said the executive.

Huawei is seeming to adjust its business route at the moment, casting its sight on the much-favored cloud computing, pointed out market obsesrvers.

The company released its cloud computing strategy and end-to-end solutions on November 29, part of its attempt to take the opportunities from the ongoing cloud computing technology reform and business model innovation to leverage efficiency for its client data center as well as computing and storage resource sharing.

Huawei, whose rivals in the telecom equipment arena include Telefonaktiebolaget LM Ericsson (Nasdaq: ERIC), Nokia Siemens Networks, Alcatel-Lucent (NYSE: ALU), will add a slew of information technology (IT) firms and Internet firms to its rival list after jumping into the cloud computing fray.

"Huawei will strive to catch up with Cisco Systems, Inc. (Nasdaq: CSCO) in platform in a short time and pace up with Google Inc. (NASDAQ: GOOG) in cloud computing business," said Ren Zhengfei, president for the Chinese company. Some market observers describe Cisco, a market leader that had a dispute with Huawei over intellectual property right seven years ago, as the archrival of Huawei in the new arena.

Huawei has been engaged in the R&D of cloud computing for more than two years, disclosed a vice president for the company, noting that the delayed launch of the product is a result of the factors in the US market. The telecom equipment maker decides to start a direct competition against its peers in the US after seeing a slower-than-expected progress in the north America market.

Source: www.nf.nfdaily.cn (January 18, 2011)

KEYWORD: SHENZHEN INDUSTRY KEYWORD: Telecommunications SUBJECT CODE: Telecommunications Equipment
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