Sunday, October 7, 2012

Huawei will have tough time cracking U.S. data center market





The Chinese telecom giant Huawei, a global company already doing business in the U.S., may pose a security risk to the U.S. government, industry and citizens says the U.S. House Intelligence Committee.




(Credit: CBS )

By product line, Huawei looks like any other data center equipment provider. Storage, networking, and security software rolls out at a steady clip and market wins -- mostly in China and emerging markets -- follow.




Except for the U.S., where Huawei is a vendor that rankles national security experts and politicians regularly. When it comes to networking and telecom gear, Huawei is a relatively small player in the U.S. In fact, most IT buyers will recite the top vendors easily -- Cisco Systems, Juniper Networks, and Hewlett-Packard. Huawei might as well not exist.




In emerging markets Huawei is much more successful. In fact, Huawei is essentially the roadblock for Cisco's global expansion. Every large technology player needs emerging markets -- the Middle East, Latin America, and Africa -- to grow. In those emerging markets, where China isn't viewed as a security threat, Cisco more often than not runs into Huawei.




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