New Delhi: Symantec Corp. and Huawei Technologies Co. Ltd are forming a joint venture company to develop and distribute security and storage appliances to global telecommunications carriers and enterprises.
China-based Huawei will contribute its 51% in the venture, to be headquartered in Chengdu, China, by providing its telecommunications storage and security businesses including its integrated supply chain and integrated product development management practices. The JV will also have access to Huawei’s intellectual property (IP) licenses, research and development capabilities, manufacturing expertise and pool of 750 engineers and other employees.
Symantec will contribute its 49% holding in the form of its enterprise storage and security software licenses and its management expertise. The US-based company will also contribute $150 million toward the joint venture’s growth and expansion.
Ren Zheng Fei, chief executive officer, Huawei, told livemint.com in an an e-mail interview that the JV is expected to be sealed in the latter half of calendar 2007, pending regulatory and governmental approvals in China and the US. But he declined to reveal further details about the alliance. However, he mentioned that the JV will have an OEM relationship with Huawei, which will augment the Chinese partner’s capabilities in delivering network security and storage solutions for telecom carrier customers. Symantec, on the other hand, will be able to enhance its access to the fast growing China market, leveraging on Huawei’s deep distribution and presence in this market.
Businesses around the world are building and maintaining IP networks and IT systems that support a growing number of connections. This requires balancing increasing performance and availability requirements with system security and data integrity. A statement released by Huawei said the joint venture will help carriers and enterprises effectively address challenges by offering security and storage appliances that are easy to implement and maximize value to customers.
According to IDC, the global security and storage appliance market is valued at $23 billion currently. The market in China is growing at 14% per annum and is expected to exceed $1.1 billion by 2010.