Simon Lin,President of Huawei Asia Pacific
Asia-Pacific is ripe with opportunities for
digital transformation, and the pandemic has accelerated it. As 5G rolls out at
scale, connectivity, cloud, AI, computing, and industry applications have all
come together to create unprecedented opportunities for the ICT sector.
According to the Asian Economic Integration
Report 2021, Asia Pacific would reap an economic dividend of more than $1.7
trillion yearly or more than $8.6 trillion to 2025. The increased use of
digital technologies will result in about 65 million new jobs created yearly in
the region until 2025.
With stable human, financial and business
fundamentals, the highest net profit in history, and our continued efforts to
globalize under pressure and increase R&D investment, Huawei’s unwavering business
strategy, focused on connectivity and computing and rapidly developing new
businesses including digital power and cloud, is perfectly aligned to drive the
digital economy in Asia Pacific.
Leveraging
Key Digital Trends
As we shift gears from COVID 19 being a great
disruptor to focusing on new opportunities from an acceleration towards digital
transformation, I’m re-energized with the possibilities for our digital
future. In 2022, our Huawei vision and
mission continues, that is to bring digital to every person, home and
organization for a fully connected, intelligent world. This year with Mobile World Congress 2022 now
behind us, I can think of no better opportunity to re-emphasize this vision and
extend it to our view for the future world of 2030.
Looking at the future world in 2030, its
characteristics and how it will impact every aspect of life, industry, society
and economy, Huawei is predicting various indicators across 4 broad areas that
include Digital Life, Digital Industries, Digital Infrastructure and Digital
Carriers.
For Digital Life, new XR and enhanced
multimedia experiences will scale to 1 billion users and offer immersive solutions that will redefine everything from museum visits to shopping.
Combining the data requirement for this with Digital Industry will mean the
amount of data generated worldwide each year will likely exceed one trillion
gigabytes and cloud services will account for more than 87% of enterprise
application spending.
Digital Infrastructure will improve energy conservation
and emission reduction with renewable energy accounting for 42% of the
industry's electricity generation. ICT technologies, while consuming only 2% of
global energy, will help reduce CO2 emissions by 20%.
Underpinning all this will be Digital Carriers,
supporting more than 200 billion connections, and providing more computing and
storage capabilities to Industries.
The Intelligent World will redefine
experiences, optimize operations, and ignite new business. Embracing business, technology and sustainability
we hope to work together with customers, partners, governments, industry and
consumers to enrich lives through this new digital future.
Driving
Innovation in Digital Infrastructure
Fundamentally, our future world will be based
on 3 driving forces: business, technology and sustainability. First,
business-driven forces will arise from the application of digital technologies
in various industries to drive digitalization and improve services.
Second, technology-driven forces will emerge
from new connectivity including 5G Advanced, 6G and IPv6+ and computing
technologies that are evolving to enable new applications.
Lastly, sustainability-driven forces including
green development, social responsibility, and fast response to emergency
situations will profoundly change people’s lives.
Connectivity and cloud are the lifeblood of
the digital frontier; however, the digital readiness of the region varies
greatly. Huawei’s Global Connectivity
Index (GCI) shows that India, Indonesia and the Philippines ranked 63, 58 and 59
respectively out of all countries, while Singapore ranked No.2. Philippines and
Indonesia are the lowest in fixed broadband speeds compared to Singapore, and
Thailand at the front. More broadly, cloud
penetration in the region is less than 20%, 4G mobile coverage is slightly
above half, and FBB reaches barely one-third of households.
Under our Tech4All initiative, for example,
Huawei’s RuralStar program, with the aim to provide Internet and connectivity
for underdeveloped regions since 2017, has successfully cooperated with 12
operators in 8 countries, including Thailand and Indonesia, in its first year.
In the remote mountains of Chiang Mai,
Thailand, for example, Huawei's AirPON solution reuses existing poles and fiber
resources, creating an "air network equipment room" that has provided
connectivity to more than 10,000 villages.
As part of its efforts to create a greener and
more sustainable digital world, Huawei will increase its investment in
sustainable green solutions, leveraging clean power generation, electric
transportation, and smart energy storage, to support the Asia Pacific region’s
goals of cutting carbon emissions, promoting renewable energy, and contributing
to a circular economy.
Lighting
Up Asia Pacific
As one of the most populous and diverse
regions in the world, Asia Pacific is set as the top fast growing economy group
to the forefront of the global digital landscape. We have been seeing the huge
opportunities for digital economy growth and digital transformation in the
region, we also have been seeing many countries in the region have released
their national digitalization strategies.
For example, Singapore released its Smart
Nation 2025 blueprint. Indonesia and Malaysia released strategies to go
digital, Bangladesh has released its strategy called Digital Bangladesh, and
Thailand announced its vision to become a digital hub in ASEAN.
In this great journey, we are committed to
supporting the region’s digital vision as a key contributor. Towards this goal,
we will focus on three key areas: Connectivity and Intelligence, Low-Carbon
Development, and Digital Inclusion initiatives.
Digital Connectivity, including 4G, 5G, fiber
and IoT is fundamental to the success of the digital economy and has been
further accelerated by COVID-19 with the demand from digital subscribers and
for digital services growing significantly. Huawei definitely plays a leading
role in this area, not only in product and solution, but in fundamental theory
research and industrial design as well.
Cloud Computing and Intelligence is the cloud
Infrastructure for an intelligent Asia Pacific, including data centers, cloud
services and AI enablement to support data monetization and promote industry
digitalization. According to Gartner’s latest report, HUAWEI CLOUD was the
fastest growing cloud in the global IaaS market with a growth rate of more than
220%. We are currently ranked 5th in
global market share and in Asia Pacific, we operate 7 Availability Zones in Thailand,
Hong Kong, and Singapore and have local service teams in over 10 countries.
Through heavy R&D investment, the carbon
emission for our E2E products and services has been reduced by over 80% for the
same capacity. Huawei combines digital and electronic technologies to develop
innovative digital power services to use energy as efficiently as possible, and
minimize the carbon footprint of ICT infrastructure, by leveraging clean power
generation, electric transportation, and smart energy storage. By the end of
2021, Huawei will have helped global customers reduce carbon emissions by 230
million tons and in Singapore, we supported Sunseap Group with industry-leading
solar inverters to build one of the world's largest offshore floating farms,
contributing to the clean energy landscape in Asia Pacific.
Lastly, we will keep driving digital
innovation for an inclusive Asia Pacific and leave no one behind. In our
vision, a digital world is not just about technology, it is about people and
humanity. Over the next 3 years Huawei will invest US$100 million to build the
startup ecosystem in Asia Pacific, and over the next 5 years, we will invest
US$50 million to develop 500,000 digital talents. In Malaysia, we launched our TECH4ALL
initiative to help bridge the digital divide and with our Huawei IdeaHub smart
screen, we have connected students in remote areas to digital interactive
learning centers.
Huawei’s
Outlook
Huawei’s Carrier business continues to benefit
from 5G network infrastructure construction and remains robust, with 13
overseas countries having the best experience of Huawei's 5G network in
third-party tests. Overseas, along with
our operators and partners, we promoted 3,000 5G applications, including many
applications for industry commercialization.
Our Enterprise business, established in 2011,
has exceeded expectations and already includes more than half of the top
Fortune Global 500 companies and more than 30,000 partners, helping various
industries transform including education, government, finance, energy,
transportation and more.
Cumulative shipments of smart wear devices now
exceed 100 million worldwide, driving our Consumer business and we continue to
expand our footprint with new devices that include premium smartphones and
tablets, smart screens, audio, printers, laptops, desktops and more. Our
Harmony operating system has surpassed 220 million users globally and Asia
Pacific continues to lead with the rapid development of our consumer HMS
ecosystem.
Our Cloud and Digital Energy businesses
achieved double-digit growth in part due to a community of over 8 million
Huawei Cloud developers and green sites deployed in more than 100 countries
worldwide.
Certainly the political climate has impacted
Huawei’s ability to do business as we would like. Even in the face of
adversity, we have achieved the highest net profit in history, hold sufficient
net cash, and maintain a healthy financial position of the company.
Going forward Huawei will adapt to this new
environment with an optimized organizational structure and continuously improve
our operating capabilities and organizational efficiency. While maintaining the
advantage of a large platform, we have shortened the management chain through
the pilot operation of industrial subsidiaries that are able to respond more
quickly to customer needs. Huawei has both the capabilities and confidence to
continue serving our customers with innovative, business-aligned, sustainable
solutions.
Huawei’s business strategy is clear, focusing
on connectivity and computing, and developing new businesses that include
digital energy and cloud. More importantly, we will support industry
transformation by leveraging our more than 3,000 5GtoB projects to offer
guidance and solutions for Smart Mining, Smart Manufacturing, and Smart Ports,
helping operators launch 5GtoB services more successfully.
We are committed to driving innovation,
attracting top and outstanding global talent, and supporting the continuous
operation of hundreds of operators, millions of businesses and billions of
consumers.
We continue to be guided by our commitment to
innovation, openness, collaboration and shared success. Even under heavy pressure, we leverage our
world-leading strong investment in R&D and drive the implementation of our
globalization strategy that includes standards, talent and supply chain. Through this, We maintain our ability to
create value for customers, cooperate with partners for shared success, and
contribute to society as a whole. Only by working together can we build the infrastructure,
services and trust that will power us into the Intelligent World.
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