RE: US to impose tariffs on chinese solar panels
The company in question is Huawei. They make serious enterprise level networking equipment. In the United States at the highest levels ... that is a Cisco monopoly market. Allow me to provide context for non-geeks:
The most basic networking level is your typical home wifi and/or wired router. It lets you share a network connection with multiple machines in your house. At this level you have scores of competitors .... TrendNet, D-Link, Netgear, Apple, Buffalo, Linksys, Asus, TP-LINK, Engenius, ZyXEL and probably another 6-12 people. You've probably heard of most of these companies. Price points as low as under $10 for some equipment.
Take a step up. At this level it tends to be small business equipment and small government .... supersized versions of what you use at your house. Instead of 4 or 6 ports ... this equipment has 12, 24, 32, 40 ports. And whereas your home equipment does port forwarding and little else ... these can do VPN, hardware firewalls, subscription based filtering services, etc. The competition drops in volume substantially. Now you're down to D-Link, Netgear, Linksys, Engenius, ZyXEL ... but now you're picking up enterprise only vendors. This includes Dell, HP, LG, Cisco ... and some interesting solutions like Vyatta, where they take a highly tweaked Linux software stack and drop it onto commodity PC equipment. Price points jump up to $50 for basic small equipment, $150+ for large basic equipment, and $500+ for feature packed hardware.
Take a step up. At this level you're talking big business, big government, military, enterprise level service providers. This is the equipment you'll find running datacenters. Now you're down to exclusively enterprise providers.... Dell, HP, Cisco, Vyatta. You've left the world of 10/100 wired ethernet, and even gigabit ethernet, and even 10 gigabit ethernet behind... now you're talking fibrechannel ... literally fiber optic cable. You're not touching anything in this space -- even at the really stripped down levels, for less than $1,000. It goes way beyond $10,000 and even $50,000 here.
Take a step up. At this level you're talking backbone provider equipment and private government (e.g. - military) networks. Sprint, AT&T, Level3, Cogent, Charter, Comcast, DukeNet, XO, etc. Now the only player left at this level is Cisco. Now you're talking multi-million dollar rollouts. This is where Huawei wants to compete.
And to be quite frank ... dammit somebody needs to compete there. Cisco makes even Apple look like an open platform by comparison. A standard gigabit ethernet card? In PC land that is $15. And this is Vyatta's business model. Take commodity PC equipment, throw a heavily customized Linux on it, undercut everybody on price with competitive performance with the power of the modern PC. And this works well ... except the very very low and the very very high end. In Cisco world, they change the slots/connectors for EVERYTHING. So even though it is the SAME gigabit card you have in your PC, it won't fit in Cisco equipment. So when you go to get one from Cisco ... instead of being $15 ... that is now $300. Cute model, huh? The trouble is, typical PC hardware isn't able to keep up at the very high end where Cisco dominates. You need custom hardware designed from the ground up. Super high throughput, super low latency equipment. A fundamentally different architecture entirely from PC world, quite literally. Cisco top end stuff runs RISC processors ... PCs are CISC processors. Fundamentally VERY DIFFERENT architectures.
Is it possible Huawei is hiding malicious code in their equipment? Possibly. They've already been documented to have phone-home type behavior. But let's be honest here ....... do you think Cisco equipment doesn't have US government back doors in it? Hmmmm? Due to the nature of this type of equipment being deployed on military networks ... it is unsurprising our government and our allies balk at Huawei. However, it is also unsurprising our enemies do the same at Cisco. The real person losing here is still the businessman ... because competition is desperately needed at the high end of the networking space.
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