Monday, March 28, 2022

Huawei reports 2021 revenue of CNY142.7 billion, down 28%

Huawei reported 2021 revenue of CNY636.8 billion (US$99.885 billion), down 28.6% compared to CNY891,368 in 2021.

Net profit for amounted to CNY113.7 billion, an increase of 75.9% year-on-year. 

Revenue for Huawei's Carrier Business dropped 7%, while its Enterprise Business revenues rose 2%.

Regionally, sales in its home market of China fell 31% as carrier completed 5G deployments. Sales in dropped in other geographies as well, with EMEA down 27%, Asia-Pacific down 16.7%, and Americas down 26.3%

Total borrowing rose 23.5% to CNY175.10 billion (US$27.46 billion).

Guo Ping, Huawei's Rotating Chairman: "Overall, our performance was in line with forecast. Our carrier business remained stable, our enterprise business experienced steady growth, and our consumer business quickly expanded into new domains. In addition, we embarked on a fast track of ecosystem development."

Meng Wanzhou, Huawei's CFO: "Despite a revenue decline in 2021, our ability to make a profit and generate cash flows is increasing, and we are more capable of dealing with uncertainty." 

Some 2021 highlights:

  • R&D expenditure reached CNY142.7 billion in 2021, representing 22.4% of its total revenue, and bringing its total R&D expenditure over the past 10 years to over CNY845 billion. 
  • Huawei's carrier business generated CNY281.5 billion in revenues. 
  • By working with carriers and partners, Huawei has signed more than 3,000 commercial contracts for industrial 5G applications. 
  • Huawei's enterprise business generated CNY102.4 billion in revenue during 2021. In the past year, Huawei launched 11 scenario-based solutions for key sectors such as government, transportation, finance, energy, and manufacturing.
  • Huawei's consumer business generated CNY243.4 billion in revenue in 2021 and continued to see steady sales growth in smart wearables, smart screens, true wireless stereo (TWS) earbuds, and Huawei Mobile Services (HMS). In particular, the smart wearable and smart screen segments both saw 30%+ year-on-year growth. In total, HarmonyOS was used in over 220 million Huawei devices as of 2021, becoming the world's fastest growing mobile device operating system.
  • Huawei Cloud has now launched more than 220 cloud services and 210 solutions, and attracted over 30,000 partners and 2.6 million developers worldwide. More than 6,100 applications are now available on the Huawei Cloud Marketplace.

The 192-page report in English is posted online:

Huawei's revenue continues to decline but company remains profitable

 Huawei reported revenue of CNY455.8 billion (approximately US$71.32 billion) for the first three quarters of 2021. The reported net profit margin was 10.2%. No further details were released.

The reported revenue represents a drop of approximately 38% compared with the first nine months of 2020.

"Overall performance was in line with forecast," said Guo Ping, Huawei's Rotating Chairman. "While our B2C business has been significantly impacted, our B2B businesses remain stable. Through our ongoing commitment to innovation, R&D, and talent acquisition, and rigorous attention to operating efficiency, we are confident we will continue to create practical value for our customers and the communities in which we work."

Huawei's first half 2021 revenue drops 29% yoy - shift to enterprise

Huawei released the following business results for the first half of 2021:

In H1, Huawei generated CNY320.4 billion (approximately US$49.4 billion) in revenue, down 29.4% yoy, with its net profit margin reaching 9.8%.

  • Carrier business revenue: CNY136.9 billion, down 14.2% yoy 
  • Enterprise business revenue: CNY42.9 billion, up 36.3% yoy
  • Consumer business revenue: CNY135.7 billion, down 46.9% yoy

"We've set our strategic goals for the next five years," said Eric Xu, Huawei's Rotating Chairman. "Our aim is to survive, and to do so sustainably. We'll do this by creating practical value for our customers and partners. Despite a decline in revenue from our consumer business caused by external factors, we are confident that our carrier and enterprise businesses will continue to grow steadily."

Xu continued, "These have been challenging times, and all of our employees have been pushing forward with extraordinary determination and strength. I want to thank every single member of the Huawei team for their incredible effort. Going forward, we continue to believe deeply in the power of digital technology to provide fresh solutions to the problems the world is facing right now. We will keep on innovating to help build a low-carbon, intelligent world."

PCCW Global doubles capacity on PEACE cable with Infinera

PCCW Global has completed a significant upgrade on the PEACE cable system between Marseille, Cyprus and Abu Talat using Infinera’s ICE technology. PCCW Global now offers network operators the ability to significantly increase capacity per fiber pair on these critical Middle East and Mediterranean fiber routes.

By leveraging Infinera’s ICE technology on the GX Series Compact Modular Platform, PCCW Global is able to reach individual wavelength speeds of 650 Gbps resulting in more capacity, with less hardware, and providing up to 25 terabits per fiber pair. 

Mr. Haitham Zahran, Vice President of EMEA Subsea Cable Systems, PCCW Global, said, “The PEACE cable system is the highest-performing open cable system connecting Asia, Europe and Africa. By collaborating with Infinera to upgrade our network segment to increase fiber capacity, we are able to offer customers industry-leading innovation that provides the most reliability and highest capacity fiber pair available.”

Mr. Nick Walden, Senior Vice President of Worldwide Sales, Infinera, said, “Infinera’s subsea solutions have historically provided network operators the greatest amount of value from their fiber assets using innovative, industry-leading technology. Infinera’s ICE solution enables PCCW Global to offer network operators open, scalable and flexible services to meet the region’s growing bandwidth demands.”

Google Cloud joins VMware Cloud Universal program

Google Cloud has joined the VMware Cloud Universal program, which is a flexible subscription that simplifies the purchase and consumption of VMware multi-cloud infrastructure and management services.

Google Cloud VMware Engine enables customers to migrate VMware applications to the cloud without changes to applications, tools, or processes, often in less than an hour(1). The VMware Cloud Verified and native Google Cloud service provides enterprise-ready cloud infrastructure for business-critical vSphere workloads with security capabilities, availability, resource optimization, manageability, and operational support built into the core service.

Virgin Media O2 UK rolls with VMware Telco Cloud

Virgin Media O2 UK is using VMware Telco Cloud Infrastructure to design, build, test and implement virtualised network functions, boosting innovation across its network and the delivery of new services. The collaboration has underpinned the deployment of Virgin Media O2’s 5G network over the past 16 months.

VMware’s Telco Cloud Infrastructure delivers a single horizontal platform enabling Virgin Media O2 to simplify, scale, and better protect its core cloud networks. Operating a reliable, agile network that can be efficiently upgraded to maintain quality of coverage is fundamental to the success of Virgin Media O2’s 5G network – particularly in highly regulated and competitive markets.

Virgin Media O2 will also leverage VMware Tanzu for Telco's Kubernetes cluster capabilities to build Containers as a Service (CaaS) proficiency. This will support the next generation of containerised network functions and enable Virgin Media O2 to maintain and expand the network’s ability to support multi-vendor solutions. Being able to onboard functions and interoperate between different vendors is essential in rapid deployment. VMware’s common platform enables Virgin Media O2 to add these incrementally.

“As the rollout of 5G networks comes close to completion, service providers need to be able to modernise their network infrastructure quickly, simply, and economically. The best way to do this is through a single platform that can automate and streamline delivery of multi-vendor network functions,” said Sanjay Uppal, senior vice president and general manager, Service Provider & Edge, VMware. “Through its work with VMware, Virgin Media O2 is able to deploy a network infrastructure that enables the successful roll out of its 5G services without limitations, by harnessing the agility, flexibility, and consistency of a common platform.”


DE-CIX activates Internet Exchange in Phoenix

DE-CIX activated an Internet Exchange in Phoenix -- its fifth North American market.

DE-CIX North America’s multi-service interconnection platform now offers connectivity from the Northeast, Mid-Atlantic, Midwest, and Southwestern (East and West) regions. 

DE-CIX Phoenix launches with immediate access from @EdgeConneX, @IronMountain, and @PhoenixNAP, to be connected to the largest carrier and data center neutral interconnection ecosystem in North America and the world.

“It is DE-CIX’s belief that all major markets need at least two large peering exchanges for sufficient connectivity and diversity, we are thrilled to bring our platform to this very important market,” comments Ivo Ivanov, CEO of DE-CIX International. “DE-CIX Phoenix will be a pillar in this new urban technology center, delivering robust connectivity, redundancy, and resiliency locally, nationally and throughout the world. We are passionate about bringing data and interconnection services closer to the users, and now DE-CIX North America spans from east to west, with more on the way.”

Celona raises $60 million for private cellular

 Celona, a start-up based in Cupertino, California, closed a $60 million Series C financing round for its solutions aimed at bridging the gap between LTE/5G cellular wireless and enterprise IT infrastructures.

Celona says that since launching its integrated 5G LAN platform in November 2020, it has seen strong demand from a range of enterprises, managed service providers and mobile network operators. The company’s customer base includes Verizon, NTT Ltd, SBA Communications, St. Luke’s Hospital System, Purdue Research Foundation, California State University (CSU) Stanislaus, and many other brand-named enterprises.

The lastest funding round led by DigitalBridge Ventures and included participation from all of Celona’s existing investors:  Lightspeed Venture Partners, Norwest Venture Partners, NTTVC, Qualcomm Ventures and Cervin Ventures. The new financing brings Celona’s total capital investment to $100 million. 

"This latest financing round is a strong endorsement of both our existing accomplishments leading the market in 5G network adoption and the tremendous growth prospects still ahead for Celona,” said Rajeev Shah, Co-Founder and CEO of Celona. “We are proud to have the support of a top-tier group of investors, including DigitalBridge leading this financing round. We believe that Celona has all the right pieces in place to build upon our foundation of disruptive innovation and leadership with our 5G LAN technology, particularly with these additional resources to expand our reach and grow our capabilities.”

  • In addition, Celona announced the appointment ofr Robert Mustarde as Senior Vice President of Worldwide Sales. Mustarde most recently held leadership positions at Versa Networks and Ruckus Wireless.

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2022 Predictions from Thought Leaders

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Celona adds eSIM provisioning for private mobile networks

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Comcast Business debuts WiFi-6 business gateway

Comcast Business introduced its first WiFi-6 certified gateway capable of delivering true multi-gigabit speeds.

The Comcast Business Gateway can connect up to 150 devices. It features multiple voice ports, a built-in Ethernet switch with two multi-gig ports, eight-hour battery backup for Comcast Business Voice service, and an industrial design that gives a business flexibility by allowing for wall, rack, and desktop mounting. It automatically protects all connected devices at the gateway level from malware and other cybersecurity threats to help keep all devices within the business protected.

“Connectivity is the backbone of business, and as the speed of business accelerates, our customers demand a high-performance technology that can be their workhorse – and their racehorse,” said Christian Nascimento, vice president, Product Management & Strategy at Comcast Business. “Designed with love from Philadelphia, Comcast Business’s latest gateway enhances business performance through faster and more reliable wireless connectivity, supporting and securing businesses, their customers and employees.”

EDGNEX builds new data center in Riyadh

EDGNEX, a global digital infrastructure provider owned by DAMAC Group, announced plans to build a new data center in Riyadh, Kingdom of Saudi Arabia (KSA).

EDGNEX is the most recent investment of Hussain Sajwani, Emirati businessman and founder of DAMAC Group.

The data centre will be located at Industrial City 2 which is just 19km from the city centre and 47km from the airport. The facility’s close proximity to Riyadh’s city centre will provide low-latency access to the entire KSA market, and customers will benefit from high-fibre density and connectivity options. The new data centre will have a maximum IT load of 20 Megawatts (MW) and sit on a 17,720 sqm plot. The facility will be ready to go live in Q3 2023.

“The KSA is one of the most exciting and dynamic ICT markets in the MENA region. The government of the KSA has demonstrated its commitment to innovation and we are proud to be supporting its long-term vision for digital adoption. We want to help attract hyperscalers and innovators from around the world and give them a foundation for growth in the Kingdom,” said Niall McLoughlin, Senior Vice President of parent company DAMAC Group. “This is a tremendous opportunity to serve growing local demand while offering world-class facilities to players from across the globe. We look forward to growing together with partners and customers in the KSA.”

Germany's Hetzner Online Deploys Infinera’s ICE6

Hetzner Online, a leading web hosting and data center operator in Germany, is using Infinera’s ICE6 solution on the GX Series Compact Modular Platform to offer new 400 GbE services across its network to meet the surging bandwidth demands of its customers.

Infinera said the deployment doubled capacity for Hetzner Online, which ranks as one of the largest data center operators in Europe with hundreds of thousands of servers in operation. With ICE6, Hetzner Online can efficiently provide 3 x 400 GbE services between any two points in its network using a single ICE6 optical engine running 2 x 600 Gb/s wavelengths. 

“Keeping up with the relentless growth in bandwidth of our customers is a critical aspect of being a leading provider of hosting services,” said Martin Fritzsche, Head of Network, Hetzner Online. “With ICE6’s industry-leading performance, we have been able to double the capacity of our network to meet the unpredictable data center interconnection needs of our customers in Germany and beyond.”

 “Infinera’s high-performance ICE6 solution continues to meet the demands of rapid bandwidth growth driven by cloud services, providing operators like Hetzner Online the ability to maximize their network infrastructure by utilizing the greatest capacity at the greatest reach, resulting in a cost-effective and spectrally efficient solution,” said Nick Walden, Senior Vice President, Worldwide Sales, Infinera. “We are pleased to continue to support Hetzner Online in providing its customers with industry-leading services.”

AUBix data center opens in Auburn, Alabama

A $120 million data center was inaugurated in Auburn, Alabama.

AUBix is a 40,000-square-foot, multi-tenant data center and Internet exchange for existing network service providers in the area, allowing them to leverage high-speed regional and global fiber networks.

“AUBix will give East Alabama a critical edge in cyber. From improving cybersecurity to giving students access to computer science training — there are many ways this data center will benefit our communities,” said Congressman Mike Rogers. “I congratulate East Alabama on securing this asset to serve our communities.”

“As Auburn advances its work with high-tech companies nationwide and as we strengthen our efforts in the field of cybersecurity, AUBix could be a potential asset for us going forward,” said Auburn University President Jay Gogue.

Qualcomm launches $100m Snapdragon Metaverse Fund

Qualcomm launched a $100 million Snapdragon Metaverse Fund to support developers focused on Extended Reality (XR) technologies. 

The Snapdragon Metaverse Fund will invest in companies building immersive experiences with AR, mixed reality, and VR. It is anticipated that the fund will deploy capital through a combination of venture investments in leading XR companies by Qualcomm Ventures and a grant program by Qualcomm Technologies, Inc. for developer ecosystem funding in XR experiences such as gaming, health and wellness, media, entertainment, education, and enterprise.