Huawei to pump $1bn into digital transformation in three years

Alan Burkitt-Gray
Published on:

Ryan Ding, president of Huawei’s carrier business group, says company is investing heavily in transformation technology for operators

Huawei is planning to spend $1 billion over the next three years in solutions to speed the digital transformation of telecoms carriers.

The company will use the money to develop solutions and platforms that it will sell to fixed and mobile carriers worldwide, Ryan Ding, executive director on Huawei’s board, said in Hong Kong today.

Speaking on the opening day of the Chinese vendor’s annual operations transformation forum, Ding, who is president of its carrier business group, said: “In the next three years, Huawei will invest $1 billion in digital transformation solutions. We will continue to build solution-oriented business and technical capabilities, solution development processes, and digital business enabler platforms.”

He told the conference of service providers: “Digital transformation is now a common business goal. In the past few years, we used to talk about the direction and architecture of digital transformation. This year, our focus has evolved to digital business and services. This is a very encouraging change.”

Ding quoted a survey carried out by IDC for Huawei which shows that “72% of carriers believe that digitisation is a mid- to long-term process that will take three to six years to complete”.

The change will affect traditional voice and data services, but also enterprise IT and connectivity, video and IoT. They “are the most important new business opportunities for carriers over the next one to two years”, said Ding.

“Enterprise IT and connectivity services, video services and IoT services allow operators to give full play to their network advantages and are also well combined with digital technologies, which will boost operators’ business growth,” he added.

“Communications networks are operators’ core assets. They help operators build three major strengths: wide coverage, massive connections and centralised operations.”

He cited a number of customers, including Deutsche Telekom, which provides on-demand private-line bandwidth for CERN, the European nuclear research organisation, in Geneva. CERN “generates the world’s fourth-largest dataset through the operation of the Large Hadron Collider every year”, said Ding.

“In 2016, it generated about 50PB [petabytes] of data.” Now “Deutsche Telekom ensures 10Gbps private line bandwidth for CERN, with more than 20TB of data transferred every day.”