According to a Huawei Technologies insider, the Chinese telecoms giant will not enter the enterprise resource planning market since its MetaERP management system is solely for internal use.According to Shanghai Securities News, an insider at the Shenzhen-based firm, the news that Huawei will join the ERP market is a misconception.Ren Zhengfei, the founder of Huawei, has stated that the business will launch MetaERP in April. Ren said that the management system makes use of Huawei's own operating system, database, compiler, and language and that it has already passed practical testing for usage throughout the firm's divisions as well as the yearly settlement trial of the company's ledger.
The release of the ERP system was interpreted as an indication that Huawei was moving faster into the software sector. Following the speculations, shares of top Chinese ERP firms Kingdee International Software Group and Yonyou Network Technology fell due to market fears about increased competition.
A source at Huawei told Yicai Global that software consumes a big portion of the company's R&D budget. Many tools are required for software development, which is as important as lithography for chip manufacturing, and this is an essential requirement to make software products, the person added, noting that only controllable and homemade R&D tools can ensure the safety of the company's core businesses.
"There are no impacts at present," a Kingdee executive told Yicai Global yesterday, noting that Huawei uses Kingdee’s human resources system. MetaERP is for internal use, but even if the system turns to external use, Kingdee is a strategic partner, the person added.
The market has over-interpreted the news of Huawei's entry into the ERP sector, Beijing-based Yonyou Network said to Yicai Global. From the industry's perspective, it takes three to five years to produce a mature ERP product, and Huawei is using its software internally, which has a limited impact on the existing competitive landscape, the company added.
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