Why Cisco Fears Huawei

Published May 05, 2012
Alumni: Constellation Research

Executive Summary

Four Reasons Cisco is Looking Over its Shoulder and What it Means to CXOs

Cisco Systems’ Chairman and CEO John Chambers usually doesn’t really pay too much attention to what the company’s competitors are saying and doing – with the exception of Huawei, a Chinese high-tech firm competing in most of the same product categories.

Huawei is on the move, and Cisco has good reason for viewing it as its fiercest global competitor. There are at least four reasons why Cisco must be wary:

  1. Huawei’s comprehensive portfolio.

  2. The cost of intellectual capital.

  3. Selling on value versus selling on price.

  4. The rules of engagement.

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