Huawei 2012 Annual Report Download - page 31

Management Discussion and Analysis 28
Huawei took the initiative to facilitate the
establishment of an organization to research
Carrier SDN. Huawei is a founding member of the
oneM2M global partnership project. By the end of
2012, Huawei had joined more than 150 industry
standards organizations, including the 3GPP, IETF,
IEEE, ITU, BBF, ETSI, ATIS, TMF, WFA, CCSA, and
OMA. In 2012, Huawei submitted more than 5,000
proposals to these standards organizations and
served as a board member for ETSI, ATIS, OMA,
CCSA, WFA, and numerous other organizations.
The company holds more than 180 positions in
international standards organizations.
Huawei’s R&D expenses totaled CNY30,090 million
in 2012, accounting for 13.7% of the company’s
annual revenue. Of the total R&D expenses,
CNY1,300 million was invested in research. Huawei
has cumulatively spent more than CNY130,000
million on R&D over the last decade.
Cyber Security
As a responsible ICT provider, we take our
responsibilities to maintain the availability of our
technologies seriously while protecting them from
any form of damage, including cyber security.
In this context, we believe that such threats will
never cease. As such, we will never let up in
our endeavors to design, develop, and support
technology and solutions that significantly limit the
possibility that our technology could be used for
purposes for which it was never intended.
In 2012, we released a cyber security white paper
titled Cyber Security Perspective: 21st Century
Technology and Security – A Difficult Marriage.
As we point out in this paper, open networks
have encouraged information flow and sharing,
lowered the costs of innovation, and helped
improve the world’s capabilities in producing
technological innovations. The development of
networks has enabled people in different parts
of the world, and within their own countries,
to have a fair opportunity of development, to
promote equal communications among different
cultures, and drive the advancement of civilization.
Technology is fundamentally improving the health,
wealth, and prospects of humanity. However, with
these enormous benefits brought about by the
networked world, we are also facing increasing
cyber security challenges.
Cyber security is a shared global challenge which
is not limited to a particular geographical region,
culture, language, or technology provider. All
stakeholders, including government and industry,
must collaborate to mitigate these risks and reduce
the chances that technology deployment is reduced
due to the fear of cyber crime. To this end, Huawei
is dedicated to closely collaborating, innovating,
and establishing international standards with other
global organizations and governments to ensure
that the integrity and security of the networked
solutions and services we provide meet or exceed
the needs of our customers and provide the
assurance and confidence required by their own
customers.
The Global Cyber Security Committee (GCSC)
is the highest level cyber security management
body at Huawei. John Suffolk is Huawei’s Global
Cyber Security Officer. Mr. Suffolk is tasked with
formulating strategies for the cyber security
assurance system as well as managing and
overseeing the implementation of the system. He
reports directly to the CEO. In 2012, following the
strategies and objectives set out in the Statement
on Establishing a Global Cyber Security Assurance
System, we have continuously incorporated cyber
security elements into our core business processes
(including R&D, supply chain, service delivery,
HR management, supplier management, and
so on) to roll out an end-to-end global cyber