The emphasis Huawei has placed on a wave of investment in optical fixed line networks is bearing fruit. At MWC 2023, the company unveiled a range of F5G
(Fifth generation fixed network) solutions for vertical industries. For Gu Yunbo, who manages the part of Huawei that sells optical network products to enterprises, this is the start of something big: a new wave of “green technology and digital transformation”.

Since 2020, Huawei has been working with industry parties on nurturing emerging standards for all-optical F5G. The reason for this investment in F5G includes spiraling traffic volumes on existing fixed line networks, caused by the roll-out of 5G and continuing digital transformation efforts.

Huawei describes F5G as “future-oriented strategic infrastructure”. Gu foresees widely available “ultra-high bandwidth, with optical networks directly connected to desktops, Wi-Fi access points and [IoT] machines”. For end users, he describes the result as having “almost zero latency and zero jitter.”

According to the management consultancy EY, global expenditure on F5G is growing at a rapid pace (18% CAGR). By 2025, EY expects the market to be worth over €400bn annually.

Much of the demand for fiber networks comes from consumer-facing industries (including cloud-based gaming, AR/VR, UHD video, smart transportation and smart home applications).

But Gu also sees F5G opening up new possibilities for employee productivity and digital transformation.

Gu says: “Huawei has released five solutions for digital transformation scenarios in various industries. These include campus networks, WAN production networks, industrial IoT, data center interconnects, and all-optical sensing solutions.”

At MWC, Huawei unveiled a 50G POL prototype designed to upgrade campus networks. Initially, the aim is to support the roll-out of ultra-fast “Wi-Fi 7-oriented” green campus networks, particularly in educational and healthcare scenarios.

“In practice,” says Gu, “we find that although 10G PON can meet campus requirements in most cases, the rising use of AR/VR teaching, 3D medical imaging, and remote interactive office poses new requirements and challenges on network bandwidth and latency.”

Huawei has also been working on digital transformation projects that directly rely upon optical networking scenarios. In electrical power generation, for example, optical F5G networks, alongside video and sensors, will play a key role in enabling remote inspection of power lines.

To underpin solutions like this, Huawei unveiled the industry’s first end-to-end OSU product portfolio at MWC. Gu describes the portfolio as “building a reliable optical communication base” for energy, transportation and other industries.

In the interview, Gu also described three additional optical-related launches at MWC. These included a lossless industrial optical network solution to improve working conditions and efficiency in large-scale industrial scenarios and a high-precision optical-visual solution for perimeter inspection at large facilities such as railways and airports.

In a sign of things to come, Huawei has also been building F5G solutions for the data center, including storage-optical interconnects (SOCCs) for financial transactions where speed and reliability are at a premium.

“We are continually working with industries to promote wide application of F5G in various industries,” said Gu. “We believe that F5G, as it evolves, is going to strengthen the level of innovation and reshape productivity.”

Find out more about Huawei’s optical solutions here.

Digital Transformation

Almost two months after cloud-based CRM software provider Salesforce announced it would be cutting around 950 jobs, the company has announced it will lay off about 10% of its workforce, roughly 8,000 employees, and close some offices as part of a restructuring plan.

Salesforce had nearly 80,000 global employees as of February 2022, up from more than 49,000 employees as of January 2020.

In a filing with the Securities and Exchange Commission on Wednesday, the company disclosed that its restructuring plan calls for the company to incur charges between $1.4 billion and $2.1 billion, with up to $1 billion of those costs being shouldered by the company in the fourth quarter of 2023.

Salesforce said these costs consist of up to $1.4 billion in charges related to employee transition, severance payments, employee benefits, and share-based compensation; while up to $650 million will be spent on exit charges associated with the office space reductions.

In a letter sent by Salesforce’s co-CEO Marc Benioff and attached to Wednesday’s SEC filing, he told employees “the environment remains challenging, and our customers are taking a more measured approach to their purchasing decisions. With this in mind, we’ve made the very difficult decision to reduce our workforce by about 10 percent, mostly over the coming weeks.”

Salesforce over-hired during the pandemic

He added that as Salesforce’s revenue accelerated through the pandemic, the company over-hired and can no longer sustain its current workforce size due to the ongoing economic downturn. “I take responsibility for that,” Benioff said in his letter.

The company said it expects to complete most of the employee restructuring plan by the end of fiscal year 2024, and to finish its real-estate restructuring in fiscal 2026. According to Benioff’s letter, US-based employees affected by the layoffs will receive a minimum of nearly five months of pay, health insurance, career resources, and other benefits to help with their transition. Those outside the US will receive a similar level of support, with Salesforce confirming that local processes will align with employment laws in each country.

Despite having a relatively successful financial 2022, the year’s last quarter saw the company grapple with several high-profile executive departures, including co-CEO Bret Taylor and Stewart Butterfield, the chief executive and co-founder of Slack, both of whom announced they would be leaving the company in the same week. Salesforce acquired Slack in 2020 for $27 billion, in a deal where Taylor played a key role.

The news comes as the WSJ reported that, based on estimates from Layoffs.fyi, employers in the tech sector collectively cut more than 150,000 jobs in 2022. In comparison, according to data compiled by the site, there were only about 80,000 layoffs in March-December 2020 and 15,000 during the whole of 2021, meaning that technology companies have been laying off workers at the fastest pace since the Covid-19 pandemic began.

CRM Systems, Technology Industry