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Huawei warns of ‘difficult’ year ahead amidst ongoing trade ban

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Huawei is rallying its employees to prepare for a “difficult” year ahead as sales of its products remain restricted in the US and the global economy continues its downward trajectory. The Chinese tech giant goes into “survival” mode for 2020, where it will look to further diversify its supply chain to mitigate risks to its business. 

While it clocked a revenue growth of 18% to hit 850 billion yuan (US$121.48 billion) this year, sales figures were lower than its initial forecasts, said Huawei’s rotating chairman Eric Xu. However, 2019 had been an “extraordinary” year for the company despite the US government’s “concerted efforts to keep us down”, Xu penned Tuesday in his year-end address to employees. 

He said Huawei’s carrier business unit continued to roll out 5G networks worldwide and the company introduced two major products this year, pointing to its artificial intelligence (AI) processor Ascend 910 and AI cluster service for model training. It also shipped 240 million smartphone units. he added. 


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It requires so much effort to build backdoors into networking equipment that work across different global communications networks and system configurations that it likely is easier and more effective to bribe a telco executive, says Huawei’s chief cybersecurity officer.

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He noted that significant opportunities were afoot as commercial applications of new technologies matured, specifically, 5G, cloud computing, AI, and blockchain. 

The global economic outlook, though, was uncertain and external market conditions were increasingly complicated. Xu said: “In the long term, the US government will continue to suppress the development of leading technology, [resulting in] a challenging environment for Huawei to survive and thrive.”

He added that the company would remain on the US Entity List into the new year, which he said would prove “difficult” for Huawei and see lower growth rates compared to the first half of 2019. 

“Survival will be our first priority,” he said, noting that the Chinese vendor would focus on sustaining growth, boosting its capabilities, “optimising” its organisation, and controlling risks in 2020.  

Specifically, Huawei needed to widen its supply chain diversity to safeguard its supply and ensure business continuity, Xu said. The company also would continue to beef up its software development capabilities, bolstered by a five-year $2 billion investment plan.

In addition, it would “go all out” to build up its Huawei Mobile Services ecosystem, which was essential to its ability to drive sales of its smartphones outside China and support its application partners, he said. 

He also pointed to the company’s Kunpeng and Ascend processors as the “cornerstone” of its cloud and computing, and stressed the need. in 2020, to drive the number of applications and products running on these chips. 

In a final call to galvanise all employees, he said: “The US government’s campaign against Huawei is strategic and long-term. It’s a great opportunity for us to motivate ourselves and build up some muscle. A great opportunity for us to be more united as a team and develop the capabilities we need to better navigate future challenges.”

Huawei last week dismissed reports that its success was fuelled by billions of dollars in financial support from the Chinese government, arguing that The Wall Street Journal article that suggested so was based on “false information” and wild speculation. The article said Huawei had access to as much as $75 billion in financial support from its government, enabling the vendor to offer attractive service terms and undercut its competitors’ pricepoints by 30%. 

In response, Huawei said it had invested close to $73 billion in R&D over the past decade, with $15 billion poured into such efforts in 2018 alone. It also invested more than $4 billion into 5G between 2009 and 2019, which it said was more than the total investment major equipment vendors in the US and Europe collectively had invested in 5G. 

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Key Criteria for Evaluating Security Information and Event Management Solutions (SIEM)

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Security Information and Event Management (SIEM) solutions consolidate multiple security data streams under a single roof. Initially, SIEM supported early detection of cyberattacks and data breaches by collecting and correlating security event logs. Over time, it evolved into sophisticated systems capable of ingesting huge volumes of data from disparate sources, analyzing data in real time, and gathering additional context from threat intelligence feeds and new sources of security-related data. Next-generation SIEM solutions deliver tight integrations with other security products, advanced analytics, and semi-autonomous incident response.

SIEM solutions can be deployed on-premises, in the cloud, or a mix of the two. Deployment models must be weighed with regard to the environments the SIEM solution will protect. With more and more digital infrastructure and services becoming mission critical to every enterprise, SIEMs must handle higher volumes of data. Vendors and customers are increasingly focused on cloud-based solutions, whether SaaS or cloud-hosted models, for their scalability and flexibility.

The latest developments for SIEM solutions include machine learning capabilities for incident detection, advanced analytics features that include user behavior analytics (UBA), and integrations with other security solutions, such as security orchestration automation and response (SOAR) and endpoint detection and response (EDR) systems. Even though additional capabilities within the SIEM environment are a natural progression, customers are finding it even more difficult to deploy, customize, and operate SIEM solutions.

Other improvements include better user experience and lower time-to-value for new deployments. To achieve this, vendors are working on:

  • Streamlining data onboarding
  • Preloading customizable content—use cases, rulesets, and playbooks
  • Standardizing data formats and labels
  • Mapping incident alerts to common frameworks, such as the MITRE ATT&CK framework

Vendors and service providers are also expanding their offerings beyond managed SIEM solutions to à la carte services, such as content development services and threat hunting-as-a-service.

There is no one-size-fits-all SIEM solution. Each organization will have to evaluate its own requirements and resource constraints to find the right solution. Organizations will weigh factors such as deployment models or integrations with existing applications and security solutions. However, the main decision factor for most customers will revolve around usability, affordability, and return on investment. Fortunately, a wide range of solutions available in the market can almost guarantee a good fit for every customer.

How to Read this Report

This GigaOm report is one of a series of documents that helps IT organizations assess competing solutions in the context of well-defined features and criteria. For a fuller understanding consider reviewing the following reports:

Key Criteria report: A detailed market sector analysis that assesses the impact that key product features and criteria have on top-line solution characteristics—such as scalability, performance, and TCO—that drive purchase decisions.

GigaOm Radar report: A forward-looking analysis that plots the relative value and progression of vendor solutions along multiple axes based on strategy and execution. The Radar report includes a breakdown of each vendor’s offering in the sector.

Solution Profile: An in-depth vendor analysis that builds on the framework developed in the Key Criteria and Radar reports to assess a company’s engagement within a technology sector. This analysis includes forward-looking guidance around both strategy and product.

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Key Criteria for Evaluating Secure Service Access

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Since the inception of large-scale computing, enterprises, organizations, and service providers have protected their digital assets by securing the perimeter of their on-premises data centers. With the advent of cloud computing, the perimeter has dissolved, but—in most cases—the legacy approach to security hasn not. Many corporations still manage the expanded enterprise and remote workforce as an extension of the old headquarters office/branch model serviced by LANs and WANs.

Bolting new security products onto their aging networks increased costs and complexity exponentially, while at the same time severely limiting their ability to meet regulatory compliance mandates, scale elastically, or secure the threat surface of the new any place/any user/any device perimeter.

The result? Patchwork security ill-suited to the demands of the post-COVID distributed enterprise.

Converging networking and security, secure service access (SSA) represents a significant shift in the way organizations consume network security, enabling them to replace multiple security vendors with a single, integrated platform offering full interoperability and end-to-end redundancy. Encompassing secure access service edge (SASE), zero-trust network access (ZTNA), and extended detection and response (XDR), SSA shifts the focus of security consumption from being either data center or edge-centric to being ubiquitous, with an emphasis on securing services irrespective of user identity or resources accessed.

This GigaOm Key Criteria report outlines critical criteria and evaluation metrics for selecting an SSA solution. The corresponding GigaOm Radar Report provides an overview of notable SSA vendors and their offerings available today. Together, these reports are designed to help educate decision-makers, making them aware of various approaches and vendors that are meeting the challenges of the distributed enterprise in the post-pandemic era.

How to Read this Report

This GigaOm report is one of a series of documents that helps IT organizations assess competing solutions in the context of well-defined features and criteria. For a fuller understanding consider reviewing the following reports:

Key Criteria report: A detailed market sector analysis that assesses the impact that key product features and criteria have on top-line solution characteristics—such as scalability, performance, and TCO—that drive purchase decisions.

GigaOm Radar report: A forward-looking analysis that plots the relative value and progression of vendor solutions along multiple axes based on strategy and execution. The Radar report includes a breakdown of each vendor’s offering in the sector.

Solution Profile: An in-depth vendor analysis that builds on the framework developed in the Key Criteria and Radar reports to assess a company’s engagement within a technology sector. This analysis includes forward-looking guidance around both strategy and product.

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Key Criteria for Evaluating Edge Platforms

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Edge platforms leverage distributed infrastructure to deliver content, computing, and security closer to end devices, offloading networks and improving performance. We define edge platforms as the solutions capable of providing end users with millisecond access to processing power, media files, storage, secure connectivity, and related “cloud-like” services.

The key benefit of edge platforms is bringing websites, applications, media, security, and a multitude of virtual infrastructures and services closer to end devices compared to public or private cloud locations.

The need for content proximity started to become more evident in the early 2000s as the web evolved from a read-only service to a read-write experience, and users worldwide began both consuming and creating content. Today, this is even more important, as live and on-demand video streaming at very high resolutions cannot be sustained from a single central location. Content delivery networks (CDNs) helped host these types of media at the edge, and the associated network optimization methods allowed them to provide these new demanding services.

As we moved into the early 2010s, we experienced the rapid cloudification of traditional infrastructure. Roughly speaking, cloud computing takes a server from a user’s office, puts it in a faraway data center, and allows it to be used across the internet. Cloud providers manage the underlying hardware and provide it as a service, allowing users to provision their own virtual infrastructure. There are many operational benefits, but at least one unavoidable downside: the increase in latency. This is especially true in this dawning age of distributed enterprises for which there is not just a single office to optimize. Instead, “the office” is now anywhere and everywhere employees happen to be.

Even so, this centralized, cloud-based compute methodology works very well for most enterprise applications, as long as there is no critical sensitivity to delay. But what about use cases that cannot tolerate latency? Think industrial monitoring and control, real-time machine learning, autonomous vehicles, augmented reality, and gaming. If a cloud data center is a few hundred or even thousands of miles away, the physical limitations of sending an optical or electrical pulse through a cable mean there are no options to lower the latency. The answer to this is leveraging a distributed infrastructure model, which has traditionally been used by content delivery networks.

As CDNs have brought the internet’s content closer to everyone, CDN providers have positioned themselves in the unique space of owning much of the infrastructure required to bring computing and security closer to users and end devices. With servers close to the topological edge of the network, CDN providers can offer processing power and other “cloud-like” services to end devices with only a few milliseconds latency.

While CDN operators are in the right place at the right time to develop edge platforms, we’ve observed a total of four types of vendors that have been building out relevant—and potentially competing—edge infrastructure. These include traditional CDNs, hyperscale cloud providers, telecommunications companies, and new dedicated edge platform operators, purpose-built for this emerging requirement.

How to Read this Report

This GigaOm report is one of a series of documents that helps IT organizations assess competing solutions in the context of well-defined features and criteria. For a fuller understanding consider reviewing the following reports:

Key Criteria report: A detailed market sector analysis that assesses the impact that key product features and criteria have on top-line solution characteristics—such as scalability, performance, and TCO—that drive purchase decisions.

GigaOm Radar report: A forward-looking analysis that plots the relative value and progression of vendor solutions along multiple axes based on strategy and execution. The Radar report includes a breakdown of each vendor’s offering in the sector.

Vendor Profile: An in-depth vendor analysis that builds on the framework developed in the Key Criteria and Radar reports to assess a company’s engagement within a technology sector. This analysis includes forward-looking guidance around both strategy and product.

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