Huawei faces struggle to deliver network and smartphone integration

Huawei has laid out plans for the next 10 years of its development at its eighth annual global analyst summit, but experts have argued it could struggle to meet its ambitious targets.

As markets in IT and communications merge, Huawei is reconfiguring itself around a converging strategy of "cloud-pipe-device", which it said provides telecoms companies, enterprises and consumers with a single corporate infrastructure for data.

"The next 10 years will be a crucial period as the needs of users shift from basic communications to comprehensive demands for information," said Richard Yu, chief marketing officer at Huawei.

"The disappearing line between IT and communications technology presents opportunities and challenges for us. Huawei will continue to collaborate closely with partners to broaden the boundaries of the telecoms industry and work towards greater growth."

Huawei is the second largest telecoms company in the world behind Ericsson, and is expanding its range of smartphones with enterprise handsets like the Ideos.

The company has seen strong growth, even during the recession, and is making plans to target European and North American markets.

Enderle Group principal analyst Rob Enderle told V3.co.uk that the company is strong in telecoms experience, but faces an uphill struggle to deliver a converged portfolio that sells worldwide.

"Over time the telecoms side has been steadily drifting towards a more computer-centric solution, driven by technologies like VOIP," he explained.

"Unfortunately this drift takes it further away from the telecoms competence that Huawei enjoys. Add to this the concerns surrounding security in any China-based company, and the barrier to successful execution may be impermeable."

Partnerships will also be key, Enderle said, and Huawei's ongoing relationships provide a healthy barometer of progress. The company may be looking to set up other co-operative agreements in the future.

However, Huawei has non-technology problems, as shown when it attempted to take over US server manufacturer 3Leaf earlier this year.

The 3Leaf sale fell through after objections from the American government, and there are continuing concerns about the security implications of Huawei's buying into certain markets.