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56 Huawei Investment & Holding Co., Ltd. 2014 Annual Report
future. While the ability to provide hybrid cloud is
important, delivering networks and local services
is vital, especially if a superior user experience is to
be ensured.
The IT industry is being reshaped by new business
models. The Internet, IT, and telecom industries
are all looking to shake up the market landscape in
order to seize the strategic high ground. The success
of these efforts will rely on dual transformation:
technological revolution and business model
transformation. Cloud services, which play a decisive
role in the information industry, are the must-haves
in a Better Connected World.
■ New network technologies: 5G will power the
Internet of Things and lay a foundation for the
new industrial revolution.
The Internet of Things and Big Data intelligence are
the foundation of the new industrial revolution.
However, it's important to realize that what
industries need from networks is vastly different
from what consumers need.
The first obvious difference is the number of
required connections. The gap might be exponential:
Machine-to-machine connections may be hundreds
or even thousands of times greater than people-to-
people connections.
The second difference lies in latency. In industry
scenarios, the demands on real-time data are much
higher than the needs of individual consumers. Many
applications, from industrial control to automated
driving, will require much lower latencies than that
are generally available today.
5G is the answer for these problems, and its
development path must be considered in relation
to both the information era and the new industrial
revolution. The goals and features of 5G networks
must be defined in line with our vision for the
future. Specifically, 5G must possess the following
core features: 100 billion connections, ultra-
low latency (1ms), and a 10 Gbit/s access speed.
Achieving these features will require innovative new
technologies, such as new cloud-based architectures,
new air interfaces with novel modulation techniques,
massive multiple-input multiple-output (MIMO)
antennas, and once-marginalized high-frequency
and unlicensed spectra. We will have to face the
needs of the connected world square on if we are
to create the building block for the new industrial
revolution.
■ New network architectures: Cloud data centers
will be at the core of software-defined network
architectures.
Software-defined networking (SDN) and network
functions virtualization (NFV) are reshaping CT
networks with IT technology to create smart, flexible
network and product architectures.
SDN separates the control and forwarding planes and
abstracts network resources to enhance centralized
network management and offer a global view. The
result is the optimum configurations of network
resources, higher efficiency, and simplified software
upgrades.
NFV decouples hardware from software and achieves
software-defined anything. Thanks to NFV, the
performance of network equipment will no longer
depend on individual pieces of hardware. Network
elements will share a unified hardware platform
and form a shared cloud resource pool, in which
resources can be flexibly shared. Networks may
automate and scale up operations based on service
volume, while systems can achieve autonomous fault
isolation and recovery.