Not content with breathing down Ericsson’s neck in the telecoms equipment space and making huge gains in the global smartphone market, Chinese giant Huawei now has its sights set on becoming a leader in corporate social responsibility, but maintains it’s definitely not part of a soft power push.
Speaking at a media event in Hong Kong on Wednesday, the firm’s head of CSR, Holy Ranaivozanany, revealed that it would be extending its Telecoms Seeds for the Future project to Australia this year.
“We thought that we needed to use the expertise in the company to bring something to the community. After stakeholder dialogue we saw there was a high expectation on us to help local schools and universities improve ICT education,” she said of the genesis of the project.
“There’s a gap between what is learned at school and what is learned in the industry, so we looked at how to bridge that gap. That’s why we launched this program in 2008.”
The project could involve scholarships and internships at local Huawei offices where students get mentored by a Huawei engineers, lectures by Huawei staff at local universities and even the creation of training centres. In Malaysia the firm is spending $30m over several years to build out such a centre, she said.
However, head of international media affairs, Scott Sykes, refuted any suggestions that this global CSR strategy might be part of an effort to soften the image of the company abroad, especially in countries like Oz which have been rather hostile to it in the recent past.
“Our top objective is not soft diplomacy but us realising our responsibility as a leading ICT company. We’re not just selling kit, we’re benefitting the communities we operate in,” he argued.
“In one sense our technology is enriching lives, making affordable high quality broadband services. Beyond that we bring jobs. 150,000 work at Huawei including 50,000 non-Chinese outside China – and that number is growing each day. In addition there’s the ecosystem. Last year we spent $6bn in the US, $3bn in Europe, $3bn in Taiwan and $1bn in Japan, so when we win this ecosystem around our business wins.”
Still, it can’t hurt the firm to show it has the interests of local communities at heart, after all the negative stories of it as a national security risk and shadowy agent of the Chinese government that usually follow it and Shenzhen rival ZTE around, especially in Australia and the US.
Ranaivozanany was even magnanimous enough to say that the firm wasn’t necessarily hoping to train up future Huawei engineers with its Telecom Seeds program, but simply “nurture a pool of talent to … keep the industry going”.
In many ways, Huawei is still learning the ropes when it comes to CSR – something that doesn’t come naturally to Chinese companies.
Ranaivozanany admitted there was “no specific measure of RoI” on Huawei’s CSR efforts, but that it was now “integral to what we do”, while Sykes emphasised that the firm was simply coming good at last on expectations of what a large multi-national industry-leading vendor should be doing in this area.
“We’re still a young company. We were only founded about 25 years ago while some of our competitors were founded 100 years back. Our focus on our core business has probably been to the detriment of other things, like communicating properly,” he admitted.
“We’re not saying we have the best ideas regarding CSR. We acknowledge we’re a newcomer in this area, but we’re building our muscle.”
For the record, Ranaivozanany outlined the “four pillars” by which Huawei defines its CSR activities as follows .
Creating and maintaining reliable networks, especially in the event of natural disasters; helping close the digital divide by connecting those in rural areas; building greener products; and the rather wooly “realising common development with stakeholders”, which basically means improving the livelihoods of employees and citizens in the countries it operates.
Asia’s unique combination of large numbers of entrepreneurs and software developers offers tremendous opportunities for dynamic cloud growth, while European and Australian companies continue to lag in the shadow of the US.
That’s the view of Nigel Beighton, VP of technology and product, for managed hosting-cum-open cloud company Rackspace, who was in Hong Kong this week to discuss how the “sleeping software giant” of Asia will soon awake.
He argued that European and Australian firms are 18 months to 2 years behind their US rivals and suffer from the same issues around legacy infrastructure.
“Asia is fascinating because it doesn’t track what happens in the US. It has its own culture and personality and if you think about software development in Asia it’s different. Even the code they write looks different. The way people think about mathematics and structure and architecture is different,” he said.
“Cloud enables business to be agile and Asia is very good at that – at being entrepreneurial. At the same time it’s cool to be a software developer here and cloud is enabling software developers to do what they want to do immediately.”
The US market, while it still has a “degree of creativity”, is very much in a phase of consolidation at the moment, dealing with legacy infrastructure and looking at changing business models, Beighton argued.
To an extent, Europe and Australian firms are in a similar boat – held back by a large legacy application estate going back 10-15 years which makes it difficult to scale vertically in the cloud, he added.
However, there aren’t many examples of cutting edge cloud innovation in the region – he gave China’s indigenous search engine companies led by Baidu as one – because it’s still early days. As a result, education remains an important part of the cloud provider’s role.
It’s worth bearing in mind here that even though it now has a successful enterprise business, Rackspace began life serving entrepreneurial SMB-type companies, which is why the firm is always keen to enthuse about this end of the market. It’s also part of the reason why it located a regional datacentre in Hong Kong rather than rival IT hub of Singapore which is geared more towards servicing larger financial organisations, according to Beighton.
“For us the entrepreneurial aspect of Hong Kong was really interesting, and how that would work in conjunction with China,” he said, adding that public cloud capabilities from the datacentre would be available in Q4 this year.
Rackspace is not the only cloud provider waxing lyrical about the huge potential in the Asia region. EMC Greater China president Denis Yip argued at a conference in Hong Kong last summer that China is actually trumping the US and the rest of the world at the cutting edge of cloud computing deployments.
However, despite huge building projects by local government in China, there is a real risk datacentre capacity will lie idle because not enough thought has gone into working out what to use it all for and how to generate profits once the infrastructure is completed.
I was in Singapore this week for a big Intel announcement, ably covered by my Reg colleague Timothy Prickett Morgan here. That left me with no news but a bit of wriggle room to consider the bigger picture: just where is Big Data headed, what’s the big deal with Hadoop and is Intel really a software company now?
Well, let’s take the last question first. Yup, Intel has been a software company for several years now actually. It was the $7.6bn acquisition of security giant McAfee which really sealed the deal though and its roadmap for taking security capabilities down to the OS and chip level is taking shape nicely. This week’s big news was that Intel is getting into the Hadoop game with its own distribution of the open source Big Data management framework.
It’s a smart move for Chipzilla, helping to drive extra revenue and boost take-up of its Xeon chips. According to global director of Enterprise Computing, Pat Buddenbaum, however, there was another reason for the move, namely “to instill confidence that Hadoop will remain open”.
“One of the concerns was that its primarily driven by start-ups with venture backed direction, which may fork from the 100 per cent standardised open source path,” he told me.
Intel as open source saviour? Well you can be sure that commercial interests were probably its primary motivator here, and it has no plans to make similar moves for other open source frameworks which may be at risk of forking.
So what about Big Data? Should you believe the hype? Well, although even Buddenbaum admitted it was a bit of a buzz word, the premise behind it is sound. It’s about organisations making sense of the vast quantity of data – be it internal or external, customer-related data – literally inundating their datacentres, in order to drive business growth and improve agility in realtime. Analysts I spoke to are in agreement that the Big Data trend is a positive one and Intel’s move will benefit the industry. Now it’s up to the OEMs, SIs, and ISVs to play their part and enable the democratisation of Big Data by pushing Hadoop down to the mass market via their products and services.
Don’t hold your breath though. The industry is at such a nascent stage that, according to Intel’s APAC Datacentre Products GM Jason Fedder, it’s not even clear which region if any is ahead of the curve. In the meantime the hype will continue as long as IT vendors (excluding Intel, of course) think they can flog some extra units on the back of this latest buzz word. But I’m pretty confident that in a few years’ time we won’t be talking about Big Data anymore – not because it will have fallen from favour but because it will be ubiquitous.