Rebirth 76: Industrial Internet Empire

Yang Mo even forgot that Huawei's two biggest business competitors in the future, Cisco and Apple, are now companies controlled by him.

Promoting cooperation between Huawei and its arch-rival Cisco was the first step in his prank...

There is no need to talk in circles when communicating with smart people. Yang Mo said straightforwardly: "The reason for the cooperation between Huawei and Cisco is to use your integration capabilities and Cisco's leading network communication technology to quickly occupy the global market!"

"But we don't want to be a company that manufactures communication equipment for Cisco!" Ren Zhengfei refused without hesitation.

"It's not an OEM, it's a joint venture! Cisco provides core technologies such as Internet operating systems, router gateway technologies, and smart switch operating systems, as well as funds corresponding to equity, accounting for 55% of the shares. You are responsible for the establishment of the joint venture, as well as subsequent operations and Promotion..." Yang Mo continued.

This is a tempting joint venture plan that almost no one can refuse...

But Ren Zhengfei still shook his head and refused: "This is unfair and not conducive to the normal operation of the company! Since we are responsible for the subsequent operation and promotion of the joint venture, the controlling rights should also be exchanged, and we will hold 55%!"

"Okay! As you said, you will hold 55% of the shares and invest an initial investment of US$[-] million for the research and development and promotion of network communication equipment. Both parties will contribute according to their shareholding ratio!" Yang Mo agreed readily.

The business negotiation was like a child playing house. Ren Zhengfei was stunned and asked in disbelief: "Is this a deal? Can you represent Cisco?"

Yang Mo didn't explain. He looked up at the clock on the wall. It shouldn't be too late in Los Angeles. He picked up the phone and dialed Chambers's phone: "Hi, John! This is Yang Mo. I'm sorry it's so late. Excuse me, could you answer the phone right now?"

"Mr. Yang! You are so polite and very convenient. What are your orders?" Chambers' voice came from the other end of the phone.

"That's it, John! I have negotiated a cooperation project in the name of Cisco in mainland China. I will send the specific cooperation details to your email later. When is it convenient for you to come over and sign the contract?" Yang Mo explained.

"Okay, I will make arrangements as soon as possible and report back to you after the itinerary is confirmed!" Chambers replied readily.

Putting down the phone, Yang Mo said with a smile: "Mr. Ren, I have to ask you to draft a contract and send it to me when you go back..."

"Mr. Yang, I'm not sure about your relationship with Cisco. Why would Chambers listen to you?" Ren Zhengfei asked puzzledly.

Yang Mo chuckled and said: "Zhiyuan Group is one of the shareholders of Cisco. Chambers and I also have a personal relationship. Don't worry, I will convince him to complete this signing!"

Ren Zhengfei looked at Yang Mo dubiously. He always felt that things were not as simple as imagined. There must be evil spirits when things go wrong. How could Cisco agree to sign such a cooperation agreement with Huawei that was obviously at a disadvantage?

As the earliest communications equipment giant to develop Internet operating systems and router gateway technologies, Cisco has done its best to set up countless patent barriers on these technologies in order to prevent other companies from getting involved in the network communications equipment business. How can they easily authorize them? What about third-party companies using their own proprietary technology?

Yang Mo seemed to have read through Ren Zhengfei's thoughts, and said with a smile: "Mr. Ren, you must be very curious, why should I help you promote cooperation with Cisco?"

Ren Zhengfei nodded and said nothing. He was waiting for Yang Mo to continue to give the answer.

"I know that you are going to develop overseas telecommunications equipment business next. Cooperation with Cisco can help you get orders from developed countries. Your price advantage and high-quality service, coupled with Cisco's technology, are enough to help you defeat the booming telecommunications equipment business." Nokia and Ericsson have grabbed more market share! But doing so is not enough to make Huawei a great company..."

Yang Mo paused and continued: "The joint venture with Cisco, in addition to swallowing up the equipment business market share of Ericsson and Nokia, more importantly, can win valuable R&D funds for the parent company and develop its own patented network equipment technology. The joint venture The company has established a complete equipment supply chain, and you can also use this supply chain to quietly seize markets in developing countries!"

Ren Zhengfei became more and more confused as he listened, and finally couldn't help but ask: "Aren't you a Cisco shareholder? How can you help us in return?"

Yang Mo chuckled and said: "You want to ask me why I eat it inside and outside, right?"

Ren Zhengfei quickly waved his hands and denied, "No... no, I'm just curious, why are you helping us?"

After Yang Mo pondered for a moment, he said with a serious face: "I'm not completely helping you. Although I am one of the shareholders of Cisco and Zhiyuan is also a Hong Kong company, after all, I can be regarded as a Chinese. I hope that in Zhiyuan In the crucial field of communication equipment, there is a Chinese company that can gain a greater say and even become a company that sets communication standards in the future!"

Ren Zhengfei looked at Yang Mo blankly, he couldn't believe his ears.

"Of course, I also have my own selfish motives. I want to promote cooperation between Huawei and Cisco, so that you can become the main supplier of domestic telecommunications equipment as soon as possible. The purchase price of network equipment, which has been monopolized by multinational communication equipment giants, will hopefully come down as soon as possible. Telephone and Internet tariffs will naturally come down!" Yang Mo explained with a smile.

In fact, what Yang Mo wants to say is that Cisco will still be defeated by Huawei n years later. It is better to turn enemies into friends earlier and join forces to seize the market share of Nokia and Ericsson.

Yang Mo is still a little worried because the flapping of his butterfly wings has led Huawei, which has been on the right track, astray.

"Mr. Ren, which standard do you think, European GSM or Qualcomm's CDMA, better represents the future of mobile communications?" Yang Mo asked intentionally or unintentionally after talking about the business.

"I am not a technician and don't understand these technical standards very well, but I heard from Xiao Guo, who is responsible for technology in our company, that cdma has too many patent barriers and it is not easy for us to re-establish our own technical system, and the gsm standard, in order to make the world More companies are participating, and there are almost no restrictions on patents, which is more suitable for us to develop technology based on this standard. Of course, we will not lead the development of cdma wireless network equipment..." Ren Zhengfei explained.

Yang Mo nodded and said: "You little Guo have a very strategic vision! Qualcomm's gangster thinking of "passing by from now on and leaving money to buy it" will hinder the development of cdma. Ericsson, Nokia, Siemens, Motorola , Alcatel, and Lucent have all joined GSM is the best verification!"