Huawei set to exit server, storage and networking business in the UK
- Reference: 1599573678
- News link: https://www.theregister.co.uk/2020/09/08/huawei_set_to_exit_server/
- Source link:
The embattled Chinese giant confirmed it has told its channel partners and customers, some of whom told us that Huawei has called time on hardware including all networking switches, servers and storage gear.
A spokesperson for Huawei sent us a statement about the country-specific portfolio rationalisation and related redundancies.
“Our Enterprise Business is to focus its operations in the UK to deliver fewer products in a better way. Unfortunately this means a number of roles are no longer required, however, we hope to reposition colleagues who are affected elsewhere within the businesses.”
We understand that 20 roles are impacted out of the 50-strong Enterprise team.
The company voicebox added that it will “continue to provide full service and maintenance to existing customers for the life-cycle of our products.”
Huawei refused to confirm the specific lines that have been discontinued in the UK, citing commercial confidentiality. According to sources, existing orders for server, storage and networking will be fulfilled. The current schedule is to cease sales of those products from the end of this calendar year.
“Ultimately, the business has done a review and decided to focus on a number of product lines,” Huawei added. The spokesperson said the campaign waged by the US government against the company was “definitely a factor in its decision.”
El Reg understands that the Digital Energy unit in the Enterprise division remains open for business. This area includes solar-related products and UPS.
Huawei confirmed that its Enterprise division will continue in Europe, though the business does not split country-specific revenues in its global financial results, so we cannot determine how extensive its operations there are.
UK smacks Huawei with banhammer: Buying firm's 5G gear illegal from year's end, mobile networks ordered to rip out all next-gen kit by 2027 [1]READ MORE
Hauling in CNY89.7bn ($12.8bn), the Enterprise division accounted for 10.4 per cent globally of Huawei's CNY858.8bn ($123.3bn) turnover in 2019, according to its [2]annual report [PDF] . This represented year-on-year growth of 8.6 per cent, which is way off the Consumer business, which grew 34 per cent to CNY467.3bn.
Huawei stuck its Enterprise flag in the [3]UK back in 2011 , and the operation [4]encountered teething problems for its first few years here . But according to some channel sources, it has been growing, and project wins were building.
The [5]sustained attacks against [6]Huawei from the US government have not helped, forcing the business to fend off accusations of being a stooge for Chinese spies, and building backdoors in its kit that helps Chinese intelligence services.
In [7]May last year , the Trump Administration put the Chinese telco behemoth on a Treasury Department "entity" list, preventing US firms from trading or transferring technology to it without first obtaining government permission. This hit the firm hard - [8]separating its Android devices from Google Play services and affecting global smartphone sales - as well as impacting its relationships with major DRAM and NAND suppliers, [9]including US maker Micron . In [10]May this year , the entity list was further tweaked, cutting Huawei off from major parts of the global semiconductor supply chain.
The Trump Administration has also pressured allies, [11]including the UK , to limit Huawei's involvement in domestic cellular and broadband systems — especially upcoming 5G networks.
The US is said to be hoping its move will bolster the position of domestic suppliers in 5G and other technologies - although someone should tell [12]Verizon, which just tossed a $6.6bn contract to supply its 5G infrastructure at Samsung .
The company has always denied these allegations of espionage and no evidence to the contrary has yet been forthcoming. But Chinese Premier Xi Jinping's [13]more authoritarian stance in recent years has caused concern in the West about the direction of travel that the country is headed towards.
In July this year, the [14]UK government was backed into a corner by America and forced to expunge Huawei from its networks by 2027 . Now this latest twist means that Huawei truly is having an annus horribilis. ®
Get our [15]Tech Resources
[1] https://www.theregister.com/2020/07/14/huawei_ban_uk/
[2] https://www-file.huawei.com/-/media/corporate/pdf/annual-report/annual_report_2019_en.pdf?la=en-gb
[3] https://www.theregister.com/2011/09/16/poskett_joins_huawei/
[4] https://www.theregister.com/2014/09/17/huawei_our_sales_europe_us_are_tiny/
[5] https://www.theregister.com/2020/06/25/dod_releases_list_of_firms/
[6] https://www.theregister.com/2019/02/21/no_intel_for_huawei/
[7] https://www.theregister.com/2019/05/15/president_trump_huawei_emergency_ban/
[8] https://www.theregister.com/2019/05/20/google_pulls_play_and_other_services_from_huawei/
[9] https://www.theregister.com/2019/09/27/micron_q4_2019/
[10] https://www.theregister.com/2020/05/16/huawei_chip_ban_latest/
[11] https://www.theregister.com/2020/01/29/huawei_uk_us_relations/
[12] https://www.theregister.com/2020/09/07/samsung_wins_verizon_5g/
[13] https://www.theregister.com/2020/09/04/taiwan_tightens_rules_around_local/
[14] https://www.theregister.com/2020/07/14/huawei_ban_uk/
[15] https://whitepapers.theregister.com/
Re: Hasta la vista
About to say the same, we have a long history with u-turns...
Re: Hasta la vista
once USA resolves its presidential roadmap
Timing may depend on whether the US settles for just one more civil war or decides to make it the best of three.
Re: Hasta la vista
> just one more civil war or decides to make it the best of three.
Don't think that changes much.
Los Alamos, Sandia and Livermore are all in Ca or NM.
Oak Ridge is in Tennessee but I don't think they let any locals near the complicated stuff.
F150s with Trump stickers vs Nukes .....
Re: Hasta la vista
You are US Rep Eric Swalwell and I collect my £5.
Not so fast
Everyone in both parties agrees that dealing with China's trade abuses is long overdue. The question has been in how to do so.
Trump's blunt instrument of bluster and pandering wouldn't be the method any reasonable president would use, but the current situation would still be used as a starting point for negotiations - you wouldn't roll back some of the sanctions on Huawei without getting something in return.
Plus it remains to be seen how much of what the UK was doing around Huawei was US pressure and how much was their own intelligence assessment and/or BoJo's being similar to Trump. I really doubt a change in administration in the US is going to cause the UK to reverse course and reopen their market to Huawei. If for no other reason than pride, not wanting to be seen as a pawn of the US.
Re: Not so fast
So what's the excuse fro crushing Bombardier in Belfast - those evil Canadians?
Still "sovereignty yeah"
Re: Not so fast
By "Trade Abuses" you surely mean "producing competitive producs"?
>cause the UK to reverse course and reopen their market to Huawei.
The UK has this rather arrogant notion that its doing everyone a favor by allowing them to sell products to them. This is all back to front; you need the products because you don't have the national capability to produce this kit, it wasn't a profitiable way to invest money. Companies would like to sell you kit but they have other markets that are less bothersome to work with so why bother with the irritant? If the UK becomes a technological backwater -- 'if' being questionable -- then its no skin of anyone else's nose, its the UK's business.
Look around you for equipment that's designed and made in the UK. Compared to the world I grew up there's bascially nothing -- practically everything you use is imported, not just the 'things' but the underlying technology.
Re: Not so fast
No, I'm talking about trade abuses like forcing companies that want to do business in China to license their IP to Chinese companies as part of a required joint venture.
Re: Not so fast
Exactly this. There is no free trade with China, it is all lopsided. You want access to the Chinese market, you give them what they want first. You try to put conditions on Chinese companies getting access to Western markets, it's unfair and they impose sanctions and/or tariffs.
And when China "licences" IP, it just means they can use it whenever they want - it amounts to theft. Then they copy it and patent it wherever they can get away with it.
That's why the US has gone the way they have, just giving China a taste of its own business practices.
Re: Not so fast
We "don't have the national capability to produce this kit" because it's comically cheaper to import it from China. Because the Chinese economy is massively lower cost. "Lower Cost" here means no employee protections, tiny wages, slave-labour working conditions, no environmental controls, free-and-easy attitude to (foreign) IP, and a massively pro-export trade policy. Since we don't want to live in that kind of society, making things in the UK costs more.
The universal "Made in PRC" label on the bottom of anything in the shops is a massive failure of trade and industry policy, not some magical "efficiency" in China.
Re: Not so fast
"... no employee protections, tiny wages, slave-labour working conditions, no environmental controls, free-and-easy attitude to (foreign) IP, and a massively pro-export trade policy..."
.. Wasnt that what Brexit was all about...?
Re: Not so fast
Yes. Even the accommodating and level-headed EU is now criticising China and their one-sided relationship with the rest of the world.
I am no fan of Trump by any means but do wonder if anyone else would have taken aim at China in the (blunt) way he did. Cameron and Osborne certainly didn't. Alongside the chaos Trump has caused domestically and globally, he may well be remembered as a sort of necessary evil with regard to changing the narrative on China.
Re: Not so fast
Part of the way that had previously been attempted was via the TPP - provide a trade deal linking other major trading partners on both sides of the Pacific that left China on the outside, and if they wanted to get in on it down the road they'd have to agree to make changes.
It ended up becoming a political football and while everyone else signed it the US opted out. Whether it would have been good or bad for the US who knows (at least I don't since I never learned much about it other than the name) but if it had resulted in China making concessions in their unfair practices it would have been worth it for the US even if there were some other less positive consequences.
The way Trump has gone from trying to put together a trade deal with China to practically starting a cold war with them will have long term consequences for the US. Not to mention changes around the Iran agreement, NAFTA, wishy washy statements about NATO and so forth. Even allies doubt the US commitment towards them now due to how quickly things can change when a hostile administration comes to power, so those who are not allies have even less reason to trust that deals they make would be honored beyond the next election. Not to mention how much reason it gives them to hold off on making deals if they think a future administration will give them a better one.
While Trump will eventually be out of office (hopefully sooner rather than later) the sort of voter he appealed to is still going to be around - he seems to have permanently changed the republican party. They're much more likely to nominate someone like Trump or BoJo in 2024 versus someone like Bush or Reagan, so unfortunately the Buchanan/Trump/BoJo party will be around for a while (whether they can get elected again when demographic changes are close to turning important republican strongholds like Texas and Georgia into swing states is another matter)
Re: Not so fast
How about another 4 years of Trump, followed by 2 x 4 years of Trump Jr ?
Re: Not so fast
Chaos? What chaos has "he" cause. Why. because he looked at the world and said "NO!" No more one sided trade with China, No more endless wars that do not resolve anything and had dubious reasoning in the first place, No more ringing our hands over "offending" the Palestinians who will never agree to any peace with Israel, No more looking the other way while the Left in the US lie, cheat and use government agencies and law enforcement as political tools, No more standing idle while Democrat politician make backroom deals to enrich their families. (BTW, he does not need to use his position to enrich his family, they were already rich, unlike the Bidens), No to the globalist who have caused decades of destruction to western economies.
The problem the world has with Trump is he does not play the game that has been going on for the last century that has decimated average families in most of the developed world. The game, that doesn't enrich CEOs, doesn't enrich the already rich, it enriches politicians of a single ideology. Those who LIE about their intentions to "Help the average man". No, they want to keep everyone on the brink of poverty and make them believe if you just give all the power and wealth to them that "they" will take care of you.
No, do not blame Trump because the World is having a childish tantrum because he told them NO!
MAGA
Making America Grate - Again
So, how was it that
China stole so much IP from US companies, anyway?
or have they?
Just wondering how one empire might steal IP from another...
Does the US have evidence they don't want to reveal for fear of alerting the opponent of their capabilities?
Can you ever prove - or disprove - a conspiracy?
Who will win the next cup final?
(sorry for slipping in a bit of reality there.)
Re: So, how was it that
>Just wondering how one empire might steal IP from another...
But if Huawei gained access to our Tea growing secrets the whole of British civilisation would be at risk
Re: So, how was it that
It this case, the ones with the patents and the ip advantage are Huawei. So Trump banned them from competing.
Re: So, how was it that
> So Trump banned them from competing.
But allowed them to continue to participate in Standards making, ie. contribute their IP...
Re: So, how was it that
The numbers tell the story.
Huawei is China's version of Bell Labs. Back in the day Bell Labs and its manufacturing affiliate, Western Electric, dominated telecommunications with both basic research and product development. We decided that it was a waste of good profit to spend all this money on R&D so we split up the Bell System into a bunch of regional companies and rebranded Bell Labs as Lucent. Without the phone system subsidy Lucent gradually became unprofitable and eventually it was sold off to Alcatel which eventually got absorbed by Nokia. Employment in these companies dwindled; the money, as ever, was in selling services so the phone network became dominated by cell companies, cable networks and the like, all rather more intent on selling plans than building equipment.
We are to blame for this situation, not the Chinese. They've got the infrastructure and people to develop systems, we don't. The best we can come up with is OpenRAN and a bunch of startup hopefuls. We can also pretend that Nokia and Ericsson are really US companies that just happen to be located in 'friendly' territory.
UK readers will know this type of story well. I used to work in the UK but gave up years ago because of the systematic de-industrialization of the country. The US offered better opportunities at the time because of its size but its been following the UK model; being larger it took longer to fall but now in many areas its a shadow of its former self. Like the UK the US is unable to fully come to terms with what its done, how the financialization of everything has led it to a situation where it only knows how to make money, not product, and like the UK it points to an ever dwindling set of exceptions to convince itself that its not really happening.
Re: So, how was it that
Exactly,
There are so many things that we used to do really well that have been destroyed, either by being sold off to foreign companies or stripped via venture capitalist investments.
And much of the issue around Huawei in particular are about some large and very rich incumbents in the US that are seeing their market share being depleted, not just on cost but because they no longer have superior products.
Yes there are all the allegations around security but is not going to be alone in this. In many ways the US is probably as bad if not worse than China because they arrogantly believe that they are "right & good" and everyone else is "bad".
Untied Estate
Did Albion exit the Fourth Reich in order to become the fifty-first state of Trumpland?
Re: Untied Estate
>become the fifty-first state of Trumpland
That's a ridiculous notion.
Somewhere like Puerto-Rico might get statehood but Britain is at best a territory
Re: Untied Estate
Somewhere like Puerto-Rico might get statehood but Britain is at best a territory ........
still a bit of an upgrade from being the unsinkable aircraft carrier from back in WWII :o)
Huawei softly softly exiting Australasia. Long-time key sponsor of an Aussie NRL team gone last week / expect sponsorship of the Aussie prem football league to follow. Enterprise hardware orders in NZ put on hold / rescinded.
Was told earlier this year "no we can't supply firewalls in NZ" - errrrr ok.......
Is this true?
"In November 2018, New Zealand’s intelligence agency barred its largest telecommunications carrier, Sparc, from using Huawei equipment. Likewise, in December 2018, Japan excluded Huawei from its domestic communications infrastructure. Additionally, in August 2019, the Australian government announced a ban on Huawei equipment. We also note that communications service providers in other countries, including BT, Orange, and Deutsche Telekom, are acting to keep Huawei equipment out of their 5G networks."
-US Govt ppl
Build a better mousetrap....
And the US will «ban» and «sanction» you....
Henri
America's bitch
So, we are losing jobs, and nee critical infrastructure just because trump has a hissy fit.
Remind me when the EU dominated us so?
Spies like US
I work for a large storage provider and a couple of years ago I was called by one of our key African customers to look at what was causing a performance spike on their storage array every day in the early hours of the morning that they could not explain.
We looked at server performance, batch jobs, and processes which were running at the time of the spikes and could find nothing which might be causing the issue.
As part of the RCA we failed the application over to its DR counterpart so that the offending host could be monitored. Sure enough at 2am (In Ethiopia in a dark and dingy DC - maximum fun) the spike happened again on a now quiet system.
After getting our egg head engineers involved they found it was something on the chipset hitting the storage and pulling off some kind of meta data and sending it to (at the time) unknown IP address in China.
The server in question was a Huawei machine and it has some kind of spy chip doing this.
The customer logged a case with the vendor and the machine was duly replaced without comment and without further spikes of sneaky IO subsystem activity.
I saw this with my own two blue eyes.
Is there any truth in the claims that Huawei are insecure, well yes.
Nice people, disgusting government
All the Chinese people I've ever met, or ever known, are few in number. But each of them I found to be pleasant, civilised, and good humoured. That's not a description in any way applicable to the Chinese Communist Party, the self-serving self-perpetuating clique which dominates China to the extent that it IS China.
The sooner, then, the better that the West stops relying on cheap imports from China and starts re-industrializing. The only thing the repellent creatures at the top of the Chinese Communist Party actually understand is money. The only pressure they ever feel is that from Chinese businesses and industrialists who're losing money. So whilst I'm sorry for anyone who has lost their job at Huawei or is about to do so, I've no regrets about severing ties with a fundamentally corrupt country whose psychopathic leaders are only ever going to moderate their behaviour once the money begins to dry up.
Re: Nice people, disgusting government
Agreed re the kindness and civility of Chinese people but ultimately they are part of the problem. Unlike in the West many Chinese see an attack on their government as an attack on both them and their country. The old adage that 'people get the government that they deserve' still rings true.
Smartphone business is on the way out
The next to go will be Huawei's smartphone business which will become completely uncompetitive if the sanctions against them aren't lifted. Without modern SoC's Huawei will quickly fall by the wayside since other Chinese companies face no such hurdles.
Who's gonna buy a Huawei smartphone with a 28nm SoC when they can buy another Chinese brand with a modern 5nm SoC?
Hasta la vista
Expect you'll be back once USA resolves its presidential roadmap