Huawei Technologies (HWT.UL) announced on Thursday that it is replacing its internal software management systems from U.S. vendors with its own, claiming triumph over U.S. constraints threatening its survival.
On Thursday, Huawei’s rotating Chairperson Meng Wanzhou, the daughter of founder Ren Zhengfei, attended an internal ceremony in Dongguan, south China, to commemorate the transfer to its own “MetaERP” (enterprise resource planning system).
ERP software manages accounting and supply chain processes for enterprises.
“We were cut off from the old ERP system and other core operation and management systems three years ago,” said Huawei board member and quality, business process, and IT management department president Tao Jingwen.
“Today we are proud to announce that we have broken through that blockade, we survived!”
Huawei announced that 80% of its business uses its Meta-ERP.
Huawei has been expanding into other fields to survive U.S. criticism, and Tao’s statement suggests a new business line for the corporation.
The U.S. Commerce Department blocked Huawei in May 2019 for security concerns it disputes.
Huawei has trouble sourcing U.S.-made products after the listing and numerous rounds of trade penalties.
According to a source, it also turned off servicing and patches for Oracle Corp (ORCL.N) ERP tools that are mostly used.
In his speech, Tao called the cutoff a “massive crisis” for Huawei because the old system had been fundamental to its operations for over two decades.
“Not having access to ERP became Huawei’s ‘Dadu River’ that blocked our way forward and threatened our very existence,” Tao added, referring to the Red Army’s epic escape during China’s civil war.
The insider said Huawei’s’meta-ERP’ system is a ‘cloud-native’ solution that exploits the company’s cloud-computing systems to be more efficient than standard ERP products.
Tao called the old system “a massive old building in disrepair,” but the new system has been completely tested and processes 15 million accounting entries every day.
Comment Template