For technology enthusiasts, it is estimated that the grievances between Huawei and Cisco are familiar to everyone. As one of the most representative technology companies in the United States, Cisco has a high position in the world. However, since the day Huawei entered North America, the feud between Huawei and Cisco has never stopped, and Cisco has been looking for various ways to stop Huawei.
In order to attack Huawei, Cisco played a series of "combination boxing", such as giving customers "black materials" to persuade them not to do business with Huawei; Accusing Huawei of copying its source code; Spend millions of dollars to mobilize US congressmen and government executives to stop Huawei from competing with it in the United States. The most direct confrontation occurred in 2003, when Cisco announced that it would file a lawsuit against Huawei and its subsidiaries, accusing Huawei of illegally infringing Cisco's intellectual property rights. The allegations include illegal plagiarism and theft of IOS software, including source code. In the recent indictment, there are more than 20 charges, covering almost all fields of intellectual property litigation.
Finally, on July 28th, 2004, the two sides reached an understanding and Cisco dropped the lawsuit. On the premise that Huawei did not infringe Cisco's intellectual property rights, Huawei agreed to modify its command line interface, user manual, help interface and some source codes to dispel Cisco's doubts. Since then, the feud between Cisco and Huawei for more than ten years has begun. Although there are some things that Cisco has not officially come forward, we all know that some problems faced by Huawei are more or less behind Cisco.
After years of competition, although Huawei has been blocked by Cisco in every way, it still can't stop the pace of Huawei's growth. Huawei has grown from a little-known enterprise to the world's largest supplier of communication equipment, surpassing Cisco in many places.
First of all, from the perspective of operating income, Huawei is more than Cisco. In 20 18, Huawei's operating income was 7.21200 million RMB, and its revenue exceeded100 billion US dollars. In 20 18, Cisco's revenue was only 49.3 billion US dollars, which was equivalent to more than twice that of Huawei.
Secondly, in terms of communication equipment and mobile phone manufacturing, Cisco is not as good as Huawei. Since 20 17, the sales scale of Huawei's communication equipment has surpassed that of Ericsson and become the largest supplier of communication equipment in the world. At the same time, Huawei's 20 18 global mobile phone shipments exceeded 200 million units, making it the third largest mobile phone manufacturer in the world.
But we need to be soberly aware that Cisco's heritage is still there, and no one can surpass it in a few years. At present, Cisco still has strong competitiveness in many fields.
First, Cisco enterprise network, switches and other data communication equipment still have strong competitiveness.
At present, Cisco can provide a complete set of solutions in the field of data communication, especially in enterprise network equipment. Although Huawei's core router market share surpassed Cisco to become the first in the world in 20 17, the quality and stability of the core router still have a certain gap with Cisco, but Huawei's price is obviously much lower than Cisco's, so Cisco was driven off the throne of the first place.
In addition to the core router, Cisco is in a monopoly position in the enterprise network, with a large market share. At present, the market share of Huawei enterprise network is relatively small, mainly because of the different channel laying and marketing methods of enterprise network. Huawei's advantage lies in being an operator, but there are few operators in a country, usually only a few. It only needs to win the operators through bidding and other means, and then it can basically occupy the communication market in this country accurately, but the corresponding profit of the operator market is far lower than that of the enterprise network. Although Huawei is also actively expanding the enterprise network market in recent years, it is difficult to shake Cisco's position in the short term.
Second, Cisco is superior to Huawei in technical services.
Everyone knows that Cisco is a hardware company, but the software service is actually not bad. At present, in addition to providing hardware, Cisco also provides consulting services, implementation services, optimization services, hosting services, technical services, training services and forecasting services based on artificial intelligence. These services have generated at least $654.38+02 billion in revenue for Cisco every year.
In addition, Cisco has an advantage over Huawei in the cloud IT market. In the future, cloud services will have a great impact on traditional infrastructure products such as switches and routers, so many giants are currently laying out the cloud IT market, and Cisco is ahead of Huawei in this respect.
In recent years, Huawei has developed by leaps and bounds. Both the communication equipment market and the mobile phone market are booming, but compared with the rapid development of Huawei, the development of Cisco in the past few years has not been smooth. For example, Cisco's net income in fiscal year 20 18 was $49.3 billion, an increase of 3% compared with $48 billion in fiscal year 20 17, while its profit was only $ 10 billion, a decrease of 99% compared with $9.6 billion in fiscal year 20 17.
In the past few years, Cisco has also made many reorganizations and layoffs. For example, in 20 14, Cisco announced its fourth major reorganization and laid off 6,000 people. From 20 1 1 to 20 13, Cisco has cut about 20,000 employees through layoffs and business sales. Until now, the development of Cisco is still not very smooth.
At present, Cisco is still a fairly large enterprise, but Huawei has become the world's number one supplier of communication equipment.
Like Huawei, Cisco is an enterprise that started as a switch. At that time, Cisco was really strong, and it can be said that it was the top network communication giant in the world.
Cisco, which originated in the United States, was established in February, 1984 in/kloc-0. At that time, Cisco wanted technology and capital. So in 1996, Cisco became the world's top network switch enterprise.
The feud between Cisco and Huawei started long ago. In 2003, Cisco accused Huawei of copying his code. It was solved in 2007.
Later, some time ago, it was discovered that Cisco used Huawei's key on the server, although Cisco said that the tester forgot to delete it after testing. But it also confirms Huawei's strength from the side.
Huawei 20 12 has become the largest supplier of communication equipment in the world. However, the competition between Huawei and Cisco has never stopped, and there is even a special book about the competition between Huawei and Cisco. It can be seen that these two companies have great influence on the communication industry.
Although Cisco is really not as strong as before, it is still very strong now.
2018 July 19, the Fortune Global 500 list was released, and Cisco ranked 2 12. 20 18 12 18 was published in the "Top 500 World Brands 20 18" compiled by the World Brand Lab, and Cisco ranked it as 15.
Let's take a look at Cisco's market share: IDC's data shows that in the first quarter of 2065.438+08, enterprises spent an astonishing $654.38+0.29 billion on servers, storage and network infrastructure products, among which Cisco's share ranked third;
20 17 in the first quarter, the market share of Cisco routers was far ahead, reaching 75.7%.
Cisco is still ahead in enterprise networks, switches and core routers, occupying great advantages. It is extremely awesome in technology and products, and can provide a whole set of solutions in the field of data communication.
And recently, Cisco is still considering an acquisition: Cisco announced its intention to acquire —Acacia Communications, a core equipment manufacturer in the field of optical communication in Silicon Valley, which mainly trades optical interconnection products in cash of up to $70 per share. The average share price is $70. Based on the closing price of AcaciaCommunications on Monday (US$ 48), the premium rate of this tender offer will reach 46%. And it's a cash acquisition. Let's just say Cisco is really rich. .......
Words such as "not what it used to be" or even "sit up and take notice" can be used to describe the changes in the relationship between Huawei and Cisco, the old rivals.
Recently, there are several things that can vividly describe the changes in the roles of Huawei and Cisco in the industry.
As early as 2003, Cisco accused Huawei of "copying code". At that time, Cisco was the absolute market overlord and leading enterprise of the core equipment of Internet and communication network. At that time, Huawei had just emerged and began to emerge from the switch products. China's late-developing enterprises will inevitably "learn from" and "imitate" advanced products. It matters not what someone is born but what they grow to be. At that time, Cisco obviously felt that Huawei would be a formidable opponent, so it paid more attention to it from all aspects, and even the industry rumored that it had set up a so-called "China Office".
These are all in the past! However, the rapid rise of Huawei does not seem to be slowed down by the attacks of Cisco and others. In Cisco's most powerful switch industry, Huawei quickly achieved overtaking, which caused Cisco to lose its leading position in the industry, especially in the router market of operators. It is difficult for Cisco to compete with Huawei's price war, and now it has basically withdrawn from the router market of China operators.
Not only that, Cisco was recently found to contain Huawei's code in its network equipment, which made Cisco extremely embarrassed.
On July 4th, the American media reported that there was a small low-level "loophole" in Cisco's switch, and this "loophole" was that Huawei's security certificate was actually found inside Cisco's switch. Afterwards, Cisco also responded to this matter, saying that it forgot to delete it.
Cisco and Huawei compete not only in the carrier market, but also in the enterprise network market. It stands to reason that American enterprises have natural genes in the enterprise network market, and Cisco was once one of the industry benchmark enterprises in this market. However, the rise of China enterprises such as Huawei ZTE has also changed the status quo of the industry.
At present, the overall situation of the domestic enterprise network market is that Huawei is absolutely ahead, and some industries of Cisco still occupy a place. It can be said that Huawei has slowly occupied the Cisco market for more than ten years.
IDC report shows that Huawei routers and switches account for nearly 50% of domestic enterprise networks, which is terrible, so Cisco switches basically have no chance. But for routers, Cisco still has a share in some industries.
In fact, Cisco is not the Cisco it used to be. Because of its high stock price, market value, profit and cash, Cisco embarked on the road of sustainable development bought by buy buy.
Cisco just announced an acquisition. On Tuesday, Cisco announced plans to acquire Acacia Communications for $70 a share in cash. Cisco said that the acquisition will strengthen Cisco's optical system product portfolio. Acacia is currently the network provider of Cisco and the core device manufacturer in the field of optical communication in Silicon Valley. It mainly provides high-speed coherent optical interconnection products, which can improve performance and capacity, reduce related costs, and reshape the communication network that cloud infrastructure operators, content and communication service providers rely on. Mainly through the realization of optical interconnection technology on the platform based on silicon. Supply for major optical communication enterprises such as Cisco and ZTE. Note that this enterprise does not supply Huawei.
This is the third time that Cisco has acquired Silicon Photonics, and they are all leading silicon photonics companies in the industry. Cisco's continuous investment in silicon light is admirable, and it also shows its determination in the field of silicon light to the industry. Since silicon photonic technology was put forward, it is considered that it will solve the bottleneck of power consumption, speed and volume faced by information networks because of its outstanding advantages such as low power consumption, high speed and compact structure.
Cisco acquired three silicon photonic companies, two of which are leading companies in this field, so that there are fewer and fewer high-quality silicon photonic companies in the market, and Cisco can control the upstream industrial chain of this industry. This makes Cisco, a veteran manufacturer, embark on a resource development road of monopolizing key component resources under the condition that it cannot compete technically, which is very similar to several big-name Japanese technology companies such as Panasonic, NEC and Toshiba. They basically quit the once-popular consumer electronics industry. Because of the fierce competition from Korean brand manufacturers and then from China, they had to retreat upstream to provide key components for China enterprises.
So it can be seen that Huawei's competitiveness is still very scary. There used to be many very famous communication brands in North America, such as Nortel, Lucent and Motorola, which all disappeared under the competition of Huawei. Cisco started as an Internet switching router and gradually handed over its leading position to Huawei. Now Cisco has resources to buy in buy buy, which is a helpless choice for R&D and operational competition to keep up with the new era.
With the decline of Cisco, the market development methods are relatively backward, and the influence of the US government eavesdropping door, there is no demand in the market and consumers, and the European market is also shrinking at present. In addition to the efforts of the Chinese people, Huawei came from behind, benefiting from two points: First, Huawei is cheap and advanced in technology. Spending half the money can meet the needs of operators, and operators will also consider the cost, so Cisco has no advantage; Second, the service advantage, Huawei has achieved the ultimate around the service, and adopted the strategy of "encircling the city from the countryside" to make markets in Africa and Cisco, expand the world market share, and use time to accumulate technology upgrades. Later, through service and price plus technology, it gradually seized the markets of developed countries such as Europe. Cisco is losing its edge. It is foreseeable that it will be acquired or closed down.
Cisco has transformed! The main tasks are, first, to create rumors about Huawei around the world, and second, to push the US government to sanction Huawei!
I'm not familiar with this piece, but personally, I think the market should shrink. Many agreements of Cisco are private, which is a bit like the feeling of Sony and Nokia. I wonder if it will be the next collapsed empire.
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Cisco is very good, and the overall competition is not inferior under the conditions of market economy.