Cyber Security Strategy and Approach Making Cyber Security part of your company DNA



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www.huawei.com Cyber Security Strategy and Approach Making Cyber Security part of your company DNA David.Francis@Huawei.com Cyber Security Officer, UK&I

Huawei was founded in Shenzhen, China s Special Economic Zone Huawei, a private company, was founded by Ren Zhengfei and several other investors with an investment of US$3,500. At that time, the company was a reseller of PBX switches of Hong Kong Hong Nian Company. 1987 1992 Huawei developed HJD analog switches that supported 48 ports. 1993 Huawei developed C&C08 digital switches, which were primarily deployed in rural areas. 1997 Huawei started engaging global top consulting firms for management transformations. 1999 Huawei established its first international R&D center in Bangalore, India. 2000 Huawei made significant progress in developing countries, e.g., Uzbekistan. 2005 2009 2010 Huawei became a preferred supplier for top carriers such as British Telecom and Vodafone. Revenue from Asia Pacific, the Americas, and EMEA exceeded domestic market for the first time. Huawei deployed the world's first LTE network in Northern Europe. Huawei transformed itself from a CT company to an ICT company and established three BGs: Carrier BG, Enterprise BG, and Consumer BG. Shenzhen in the early 1980s Shenzhen after three decades

Today, Huawei is a leading ICT company Who is Huawei Employees A leading global ICT solutions provider 150,000+ employees worldwide A Fortune 70,000+ engaged in R&D Private, employee owned company 80,000 Global 500 company, ranking 285 in 2014 shareholders Market Progress US$46Bn revenue in 2014, Serving 45 of the world's top 50 carriers, which account for 77% of Huawei's revenue generated from the carrier network business Serving 1/3 of the world's population Business Areas Carrier Enterprise Consumer

Focusing on the pipe strategy to lead in the digital era Information storage and processing Cloud data center Digital society Big data and big traffic Information transmission Network infrastructure Information presentation Network devices Enterprise business: steady growth Become a major ICT infrastructure provider that supports digital restructuring for enterprise customers Carrier business: Maintain leadership Become the best strategic partner for carriers and the industry leader Consumer business: build brand Become a world-leading smart device brand trusted by consumers

Globalized resource deployment and localized business operations Netherlands Toronto Germany Ottawa Hungary Romania Silicon Valley China Bahrain Mexico India UAE Malaysia Huawei Headquarters Accounting shared service center Brazil Bidding center Mauritius Supply center & Hub R&D center Training center Argentina Technical support center Operations in 170+ countries; 150,000+ employees comprised of 150+ nationalities worldwide ; 30,000+ non-chinese employees with 70%+ localization rate. Huawei's global value chain allows fluid capability transfer across the globe, develops and retains talent in local countries, and creates jobs and economic opportunities.

Our Presence in the UK 1100+ employees 75 % locally recruited 1500 staff by 2017 HQ in Reading 2 Joint Innovation Centers 10 Centers of Excellence In 2012 Mr Ren pledged to invest 650m & procure 650m in services, in the UK by year-end 2017 We will Invest 125M in UK R&D over the next three years We currently employ 150 hightech R&D staff & by 2017 will employ 300 R&D staff Huawei proprietary. No spread without permission. Page 6

Technology has fundamentally helped enhance mankind better education, better health, better economic output, better lifestyle choices. This is set to continue Any Content Any Place Any Device Any Network Any Time Internet @ Breakfast Communication during Trip Internet @ Entertainment Internet @ Office Internet @ Meeting Internet @ Hotel Internet @ Taxi Internet @ Plane Future = Ubiquitous + Omnipotent Page 7

Open networks connect the world, facilitate economic exchanges across regions, and promote global trade. 5G telecommunications technology will increase today s fastest wireless speeds by 100 times new opportunities and new threats 7 Billion People 50 Billion Machine In-vehicle Communication & Smart Traffic Vehicle communication, navigation, tracing, security and maintenance Auto Meter Reading Remote meter reading is safer and easier. Benefit for Green City construction Merchandise Distribution RFID is used for merchandise trade and garbage sorting management Remote monitoring & Health Vending Electronic Consumer Remote homecaring, health, safety management Vending, cargos management, E- wallet management Info sharing, on-line game, media download, communication, etc. Page 8

Technology and its use is advancing at an amazing rate and brings substantial benefits to all, but so are the threats to the users of technology advancing Page 9 It is hard to stop the tide of progress and technology innovation. Threats are increasing every day. The bad guys are getting significantly more sophisticated. And international law provides its own security twists and turns. And finally it is impacting on almost all hardware and software even systems not connected to the internet are being breached.

Cyber Security The threat is changing, roles are changing and the purpose of the attack is changing politics, protectionism, money and hacktivism Source: Microsoft/ Secunia Page 10

A series of cyber security white papers--cyber Security Perspectives Remain open and transparent; demonstrate Huawei's policies, challenges, and solutions in terms of cyber security. Making cyber security a part of company's D NA-A set of integrated processes, policies a nd standards Introduce how Huawei resolves this issue th rough its end-to-end cyber security assuran ce system 4th version of cyber security white paper Analyze cyber security issues based on future-oriented technology trend 2012 2013 2014 2015/6 21st century technology and security-a diffic ult marriage Share with the industry and the general publ ic about how Huawei perspectives cyber security 100 requirements when considering end-to-e nd cyber security with your technology vend ers Provide customers with suggestions on how to mange and improve cyber security Page 11

Huawei s Second Cyber Security White Paper Cyber Security Perspectives Making cyber security a part of a company s DNA A set of integrated processes, policies and standards October 2013 Page 12

The white paper details our approach to implementing consistently understood, globally rolled-out repeatable processes on which to embed the change a built-in strategy our corporate processes are the foundation stones consulting consulting Customer Requirement MM Charter IPD Requirement Realization Customers Leading/Opportunity / Contract Service Engineering Input / Market Input Order Related Process Operation & Maintenance Process Contract ISC consulting Manufacture NPI Sourcing Plan Product/ Service Customers Issues CRM/ LTC Service HR Finance IT Quality Control consulting consulting MM: Market Management IPD: Integrated Product Development ISC: Integrated Supply Chain LTC: Lead To Cash Page 13

Every part of Huawei, and every person, is included in our built-in strategy. Audit Strategy, Governance and Control Standards and Processes Area Strategy, Governance and Control Standards and Processes Focus Having an overall strategy and the accountability to make it happen Using the best standards and approaches to protect against threats and risks Issue, Defect and Vulnerability Resolution Delivering Services Securely Built-in cyber security assurance Laws and Regulations Human Resources Laws and Regulations Human Resources Research and Development Verification: Assume nothing, believe no one, check everything Third-Party Supplier Management Making your products and operations legally compliant in every country you operate in Getting the right people, in the right roles with the right behaviour to limit insider issues Designing, building, testing products in a secure way that builds on the above building blocks Many eyes, many hands many checks. Tiered independent approach to security verification Getting your suppliers to take security seriously 70% in the box is not Huawei s Manufacturing Third-Party Supplier Management Verification: Assume nothing, believe no one, check everything Research and Development Manufacturing Delivering Services Securely Issue, Defect and Vulnerability Resolution Audit Manufacturing products that secure each step along the way right through to delivery Ensuring installation, service and support is secured. No tampering, fully auditable As issues arise, solving them quickly and ensuring customers technology is secured Using rigorous audit mechanisms to ensure every part of Huawei conform to the strategy Page 14

We have created a virtuous circle of many eyes and many hands ensuring we continuously improve our knowledge our technology, our people and our processes, this creates a win-win-win process customers, Government, Huawei What we learn updates all Huawei processes, standards and policies and is applied to all products and services virtuous circle IPD: Integrated Product Development Process Concept TR1 Plan TR2 TR3 Development TR4 TR4A TR5 Qualify TR6 Launch GA Lifecycle Independent Penetration Test Independent Internal Cyber Security Test Lab Independent External Cyber Security Verification Centre Independent Testing As Specified By Customers/ Governments Common Criteria Third Party Page 15

White Papers Huawei s Third Cyber Security White Paper: Cyber Security Perspectives 100 requirements when considering end-to-end Cyber security with your technology vendors May 2014 www.huawei.com/ilink/en/download/hw_401430 Page 16

Closing Thoughts: Threat will never stop,we never stop The development of networks has helped to advance social progress. Open networks have encouraged information flow and sharing, provided more opportunities for innovations, lowered the costs of innovation, and has helped improve the world's health, wealth and prosperity. Cyber security is not a single country or specific company issue. All stakeholders governments and industry alike need to recognize that cyber security is a shared global problem requiring risk-based approaches, best practices and international cooperation to address the challenge. As a crucial company strategy, Huawei has established and will constantly optimize an end-to-end cyber security assurance system. This is a continual effort, and Huawei is committed to providing best-in-class products and services to meet the needs of our customers. We take cyber security seriously and have invested substantial resources into our efforts to promote and improve the ability of our company, our peers and others to provide the best-possible security assurance and ensure a safer and more secure cyber world for all. Page 17

Thank you www.huawei.com Copyright 2012 Huawei Technologies Co., Ltd. All Rights Reserved. The information in this document may contain predictive statements including, without limitation, statements regarding the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an acceptance. Huawei may change the information at any time without notice.