Information Technology Reference
In-Depth Information
When DCI was founded, no one realized how powerful the internet would be-
come and how it would change normal classroom and seminar training.
The demise of a company due to IRS criminal charges is unique in this topic,
although no doubt it has happened many times in many industries.
Huawei
Huawei is not a U.S. company but is included to illustrate that computers and soft-
ware became global business sectors during the 1980s. It is also cited because the
telecommunications industry was a pioneer in both computers and software and
also in software quality control.
Huawei was founded in 1988 in Shenzhen, Guandong, China, by a former mil-
itary officer named Ren Zhenfei. Huawei was originally a private company that
was owned by its employees, which would have been an unusual business mod-
el in the United States. Another unusual aspect of the Huawei business model is
that about 46% of the company's approximate 140,000 employees works in re-
search and development. This harkens back to the glory days of Bell Labs when
it was one of the world's premier research organizations that developed many
of the devices used today, such as transistors in 1953. Huawei currently has 20
R&D laboratories located around the world in many countries, including the Un-
ited States.
Huawei is a global corporation that manufactures communication devices, net-
working equipment, cell phones, and other products. Huawei became the world's
largest manufacturer of telecommunications equipment circa 2012, when it pulled
ahead of Ericsson.
Huawei started operations as a marketing company that sold private branch ex-
change (PBX) switching systems developed by a Hong Kong company. After sev-
eral years, Huawei began to build its own PBX switches aimed at hotels and cor-
porations that needed their own telephone systems.
In 1997, Huawei began to expand outside of China. In 1999, Huawei joined the
International Telecommunications Union (ITU), which is a business necessity for
global telecommunications companies. Huawei's global business grew so rapidly
that by 2005, global sales were larger than sales in China for the first time.
As companies grow rapidly, their organization structures also need to grow and
stay flexible. To assist in this rapid growth, Huawei contracted with IBM from
1998 to 2003. Huawei has also entered into a variety of joint ventures with U.S.
companies such as Motorola and Symantec.
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