Huawei's rotating CEO Xu Zhijun: Huawei's next goal is to customize your favorite mobile phone

Ladies and gentlemen, good morning everyone, welcome everyone to attend the full conference of Huawei. In 2014, I spoke at the HCC conference about why Huawei is entering the IT field. It is because the technology and concept of cloud computing will change the IT architecture and carrier network of enterprises. For Huawei, this is an opportunity to enter the enterprise and government markets, and also to strengthen our competitiveness in operators.

I propose that Huawei must become an IT company in order to become a leader in the ICT industry. At the HCC conference in 2015, I further clarified what Huawei is doing in the entire IT field, what not to do, and our strategic choices. It also clarifies that we will work with all partners in the industry to build an ecosystem and develop together.

In 2014 and 2015, I shared more with Huawei's perspective. Today, I want to change my perspective. From a business perspective, I will discuss with you how to solve the problems and challenges faced in the current economic situation and how to better face the future. My answer is the theme I want to talk about today: Embrace the cloud, integrate into the cloud, and become a digital enterprise.

Yesterday, President Hu called us to shape the cloud era and called on us to shape the world together. He also mentioned that in the era of cloud 2.0, enterprises will become the protagonists. In the process of shaping the cloud era, enterprises should resolutely carry out digital transformation and unswervingly become digital enterprises.

Everyone will ask, what exactly is a digital enterprise, and what is the goal of digital transformation? What value can it bring? Today, I will throw a brick first, and I will continue to explore and improve it in the future.

· I believe that to become a digital enterprise, we must first realize the full connection of people, people and things, and people and things, and also connect the employees, customers, partners and suppliers of the company. Enterprises must operate based on big data and artificial intelligence. In addition, integrating real-time decisions into business processes and automating them makes operations simpler, more efficient, and smarter. The key to a digital enterprise is to provide customers, partners, and employees with a ROADS experience, which is the most difficult to achieve. In the future, from the perspective of enterprises and consumers, when purchasing products and services, and enjoying products and services, they should be able to share and recommend between friends in real time, on demand, online, DIY and through social networks. .

Share with you the example of Harley. Harley-Davidson is the most high-end brand in the world. Its philosophy is that there is no Harley in the world. Thanks to the digital transformation, all production lines are interconnected, and more than 1,200 parts are assembled into a motorcycle, which takes only 89 seconds. Harley's production management can be accurate to the second. Before the digital transformation, a Harley motorcycle took 21 days from the customer's order to delivery. Through the digital transformation, all order orders are online, consumers can choose the model and color of the engine, and shorten the delivery time to 6 hours.

For Huawei, we always have a pursuit. We hope that when consumers place orders in Huawei Mall, they can customize a mobile phone according to their own hobbies. This order can be automatically transferred to the production line; after the manufacturing is completed, Automatically sent to consumers through logistics, that is, we produce a mobile phone, only the time of production and the time of logistics, then what is our competitiveness, operational efficiency, customer experience? In the enterprise competition, if a company is unswervingly digitally transformed and can become a digital enterprise, its experience, efficiency, and various aspects can be greatly improved, and it is likely to win in the competition. On the contrary, companies that do not take action may die in competition.

· How can I become a digital company? I think it is to embrace the cloud, integrate into the cloud, and use the technologies and concepts of cloud computing to innovate our business model and operating model to enhance experience and efficiency. In the past 10 years, companies born on the Internet in the cloud have built a very good experience and changed the business model of many industries, but imagine that our traditional enterprises, traditional industries, or our government agencies, If you can also use the cloud's ideas and technologies to innovate your business model and innovate your own operating model, then maybe some of our industries will not be subverted. At that time, the customer is our customer, the product is our current product, but the business model and operation mode may be able to change through the cloud concept or technology, making it simple, efficient and low cost.

We have to embrace the cloud and integrate into the cloud. In fact, how to do it is clear, but what we really want to do is very challenging. This challenge has the ability to solve problems, talent problems, traditional applications and new applications. There are many other issues with the process and software to be transformed. But I think that the answer to the problems and challenges of cloudization should still be sought from the cloud itself. Enterprises should think about implementation strategies from the three dimensions of building a cloud, using a good cloud and managing a cloud. Based on the IT and network architecture of the entire enterprise, we identified ten aspects of the problem. Of course, there may be more than these ten aspects. I think these ten aspects are the problems that any enterprise will face in the process of digital transformation. I will focus on five key aspects and talk about my views.

The first and most painful thing for all companies today is how to do agile development of these applications. How can the development of I T applications change rapidly as the business changes? I learned yesterday that Huawei used its own 3,000 employees and a large number of outsourced employees to do our internal IT applications. The overall investment in IT outsourcing last year was 1.5 billion yuan, and the overall investment was great. I have talked with many companies and found that a large number of companies have large developers of self-IT applications, as well as a large outsourcing staff. Every IT application actually develops many of the same functions individually and repeatedly. Each application deployment is time consuming and difficult to automate. So in recent years, some big companies have been thinking about how to unify these common functions, develop a PaaS platform or introduce a PaaS platform. However, if every enterprise develops a PaaS platform, everyone is doing repetitive work. The PaaS architecture of each enterprise is fragmented, and the results of the PaaS platform created by each company are also uneven. Therefore, I believe that it is better to have a unified architecture PaaS platform, not only with public, standardized services, but also for each field, but also to provide some specialized services. This allows our different companies, including software developers and system integrators, to focus more on application development.

Second, we want to cloud, whether we build a private cloud or a public cloud service, in fact, we all face a word: security. In terms of security, everyone will think that after we use the cloud, there may not be security before. The core reason is that after the cloudization, due to data dispersion, the risk of data leakage and illegal access increases. Then there is the resource. It turns out that each of our applications runs on different servers. It is physically isolated. After using the cloud, we all go from physical to logical virtual, so the security boundary becomes more and more blurred. The loopholes will also be magnified. It turns out that we may have repaired a Great Wall. It is now possible to protect between virtual machines and virtual machines. On the other hand, from an application perspective, we want to provide applications quickly and agilely, but security matching can't keep up. Also, from a management perspective, we want resources to be more agile, which is the biggest advantage of cloud computing, but our authorization may be static and not matchable. So this is the security challenge facing our cloud era.

But it is not that after the cloud, everything is bad, it also brings new advantages to deal with security challenges. We are able to respond to security threats end-to-end, systematically, and to fully analyze threats and respond in a timely manner. In addition, objectively speaking, public cloud is definitely safer than SMEs, because no SME can have such a large security investment and flexible security services. So I think the key to coping with security after cloudization is to build a full-stack security system, including physical security, network security, host security, application security and data security, while making global visualization, which is also the advantage brought by the cloud. . On the other hand, real-time, intelligent perception and prevention are based on big data and artificial intelligence. Finally, we have to choose some trusted partners.

Third, we are now getting more and more traffic and more and more data. The current data center uses a traditional architecture to divide the network into three layers and the bottom layer to connect to the server. Such a network architecture, according to current capabilities, can only support a capacity of one hundred Tbps, and also faces the problem of single point of failure risk and power consumption. In large data centers, maintaining hundreds of thousands of pairs of fibers is also very difficult. I don't think this is our data center for future big data traffic and massive data storage and computing needs. If the cloud concept is used in the data center architecture, from Scale up to Scale out, you can achieve Pbps-level ultra-large capacity and significantly reduce fiber. But this solution is not yet available. I hope that our industry can work together to use the cloud concept to replace the current data center architecture with a distributed architecture.

Fourth, in the process of cloudization, the migration of data, the migration between private and public clouds, and the migration between public and public clouds, the biggest problem is that enterprises need bandwidth on demand. I am here to talk about a service provided by Amazon, which makes me feel a little shame. Through express delivery, Amazon lets companies deliver a box containing data to Amazon for $200 per 50TB. If you copy this data from the cloud, the charge is between one thousand and two thousand dollars. It is neither safe nor convenient to transport by box, so from the perspective of the enterprise, we need operators to provide bandwidth on demand, so that we can quickly realize the massive data migration between the public cloud and the private cloud.

Fifth, for the campus network management of enterprises. Because the campus network is very complex, it needs to be managed and maintained by certified professionals. Every device must be configured with data. Huawei has more than 200 organizations worldwide, and each organization needs to have someone to do these data configurations. But if we introduce the concept of cloud into our campus network, we will integrate and cloud the campus operation and maintenance, policy management, and configuration, so that the enterprise itself, the supplier, or the service provided by the telecom operator, the enterprise They only use the box to buy, plug and play, and concentrate and cloud the service, which can greatly reduce the OPEX of the campus network.

To truly build a digital enterprise, not only does the CEO and the management team have to make up their minds, they must unswervingly push forward, but also rethink the value and positioning of the CIO in the future. The original CIO had only one I, but now there are three I. Among them, the word InnovaTIon is the most critical. Because the CIO masters the ICT technology and gradually accepts the cloud concept and technology, if combined with the business, it can promote the innovation of the entire business operation mode and business model. We think that the CIO wants Become the driver of innovation in business models and business models. In addition, InformaTIon means that CIOs need to be the leader of IT architecture cloudization, and Interconnect is the hope that CIOs will become customers, partners, and enablers within the enterprise.

Huawei's cloud strategy positioning, we adhere to the customer-centric, focus on ICT infrastructure, to be the provider of innovative cloud technology, we hope to become the promoter of the digital society and intelligent society development process. It has become the enabler and preferred partner of the entire enterprise cloud and digital strategy. Through openness, cooperation and win-win, it has become an active contributor to the cloud ecosystem.

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