Information & Communication Technologies

Blog archive - May 2017

Use the blog to discuss and comment on the latest industry insights provided by our analyst experts.

Huawei shares digital strategy and future plans at HAS 2017

by Haritha Ramachandran 11 May 2017 | Add Comment

Frost & Sullivan has attended Huawei’s 2017 Huawei Analyst Summit (HAS 2017) in Shenzhen, where Huawei discussed its performance results and future strategy. One of the key announcements during the summit was the launch of its first public cloud service suite called ServiceStage. Eric Xu, Huawei's Rotating CEO, opened the summit with an in-depth overview of the company’s performance in 2016. Huawei’s overall revenue reached RMB 522 billion (USD 75 billion), increase of +32% YoY. However, despite the revenue growth its operating profit margin dropped from 12% in 2015 to 9% in 2016. Geographically, China contributed to 45% of Huawei’s total revenue in 2016, which indicated an increase from 42% in 2015. The operator business held its key share of Huawei’s 2016 revenue (56%). The consumer BU grew at +44% YoY and total posted revenue of RMB 180 billion, which resulted in increased contribution from 32% in 2015 to 34% in 2016. Huawei’s global smartphone shipment reached 140 million in 2016, which indicated an increase of +30% YoY. Earlier in March 2017, Huawei announced setup of the Cloud BU with 2000 staff and launched 54 full-stack cloud services falling into ten categories. "Cloud technology is becoming the new growth engine as digital transformations accelerate. Huawei has continued to step up its R&D, one result culminating in the cloud service offering. Huawei has become the preferred partner for many of the world's top customers and will continue to provide high-quality cloud services with our partners as we persist in building a healthy ecology in the sector”, said Zheng Yelai, President, Cloud BU and IT Product Line during HAS 2017. All things considered, Huawei’s cloud ambitions for 2017 seem both broader and deeper than most, if not all of its competitors. Cloud service will become a crucial part of infrastructure to support digital transformation in the Cloud and Huawei is going “all in” on it.

Notes from Microsoft Asia 2017 Analyst Briefing: Securing a new Digital World

by Misun Yoon 10 May 2017 | Add Comment

Globally, security remains a major concern for IT markets today as consumers use multiple devices to connect to the Internet for both personal and professional purposes. The Internet of Things or IoT refers to the digital connectivity of devices, object and environment to the Internet. For 2017, numerous IoT-enabled devices have been developed and they are only expected to increase. Microsoft has developed their security capabilities by offering its own services and that of its partners within the ecosystem to provide a more secure environment for its clients. Ultimately, Microsoft’s goal is not to be a security company, but to become the most secured company in the world. To achieve this, Microsoft has used various approaches - platform, intelligence and expertise and partners to provide unique points to its customers. The company has not only strengthened its security solutions but also its partner ecosystem to provide a more secure environment. During their Asia analyst briefing, it was interesting to see how Microsoft is building their capabilities to offer their services from an end point. In addition, they also focused on their unique approach platform, intelligence, expertise and partners in Asia. Michael Montoya, Microsoft Asia’s Chief Cybersecurity advisor, opened the session with a brief introduction on their approach and security offerings for their customer, including empowering technologies to reduce human errors. Microsoft has been developing their technologies to fix the problems in the traditional IT security tools. These issues included complexity, prone to false positives and design, which only protected the perimeter. The company has also invested in security to provide automated security and risk management, business ready identity, client connectivity, cloud transportation, data intelligence and supplier and factory security. It was pretty interesting that Mongolia is the top market in Asia Pacific under malware threats with malicious software such as Gamarue, Lodbak and Dynamer in Microsoft Security Intel report. Following that, Eric Lam, Director at the Microsoft Enterprise Cybersecurity Group, spoke on their intelligent security with its interflow API and threat attribution service, analytics and data collection and normalization. Microsoft offers its security services based on their customer’s security position which requires protection, detection and response. Based on that, the company tailors its security solutions to provide visibility, context, experience and expertise within the company’s cyber defense operation center. Within the cyber defense operation center, Microsoft has four areas which includes the Malware Protection, Cyber Hunting teams, Security Response center and the Digital Crimes unit, all of which collaborate to provide the most secured system. Frost & Sullivan predicted that from an Asia-Pacific perspective in 2017, cyber security will see the enterprise security team adopt a more active role and not adopt the traditional wait and see posture. The market is expected to see more enterprises working towards knowing the latest cyber-attack techniques and the new attack vectors to understand and identifying ways to prevent the hackers’ next move. In addition, with its security services matched with its multi-vendor approach, Microsoft is able to offer a multi-flow approach to determine the unknown threats and resolve them, saving time in the process. Overall, the sessions offered a good overview of the investment that Microsoft made to provide more secured systems by creating a platform which is secure by design.

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