Huawei Looking to Overtake the U.S. Channel

Huawei Technologies Co. is enlarging its presence in the U.S. channel by adding two boutique distributors and signing a professional services partner. These new relationships will allow the network and communications vendor to attract new customers to its channel and compete with market front-runners, particularly Cisco.

Executives at Huawei stated that the company had been successful in attracting U.S. enterprise and midmarket partners, and its sales and channel presence are increasing thanks to its relationship with major distributor Synnex. Although Huawei is notable for its networking equipment, it is now introducing telepresence, video conferencing and storage solutions to the U.S. channel.

Huawei has established new distribution relationships by signing a specialist in communications equipment sales, Communications Test Design Inc. (CTDI) of West Chester, Pa.; and Condre Storage Inc. of Eden Prairie, Minn., which is a niche distributor of storage equipment and services.

CTDI specializes in telecommunications equipment sales, logistical support and professional services, and is a prudent choice for a company like Huawei. Their relationship will allow Huawei to support its traditional carrier and local exchange switch sales, in addition to enterprise networking and wireless infrastructure business.

Huawei's link with Condre Storage is particularly interesting, as it fills a hole created when Symantec sold to Huawei its controlling interest in a security and storage equipment joint venture, and left the company to coordinate support for U.S. partners of Huawei Symantex with a Hong Kong-based subsidiary.

This sudden shutdown by Huawei Symantec unnerved some channel relationships, particularly those with Condre. Huawei now seeks to repair those relationships, and is part of the reason for working with Condre.

Furthermore, with Essintial Enterprise Solutions of Mechanicsburg, Pa., which provides parts distribution, logistics and field engineers for its subscribers, Huawei is expanding its professional services capabilities. Huawei's networking and data center resellers and integrators in new installations will be supported by Essintial and allow for the replacement of legacy equipment providers.

Rob Claus, vice president of channels for Huawei USA, says the company is following a measured and deliberate channel strategy that will greaten the capabilities of its distribution partners to increase sales and support capacity. This will be done through its continuing channel development relationship with Synnex. Gradually, Claus states, Huawei will overtake channel relationships.

Huawei has also attracted controversy; it is frequently accused of holding ties to the Chinese government and military, and could therefore pose national security threats. Additionally, Cisco charge Huawei with stealing intellectual property and trade secrets. Both Cisco and Motorola have sued Huawei for IP theft in the past.

However, Huawei remains resolute in deterring these criticisms and allegations, and still seeks to tier channel relationships. Vice President of External Affairs at Huawei USA, Bill Plummer, states "Huawei is patient company and a world leader. We introduce innovation and products at an attractive price. And we introduce competition to markets that are dominated by incumbents. And we've been successful."

The company has a global aim of becoming a $100 billion by the end of the decade, and could certainly reach this goal by drilling into the U.S. market. (CY) Link