Prism door follow-up: American technology giant staged "Feng Sheng" in China

Since it is impossible to find out who the spy is, then isolate all the suspects-this is the plot at the beginning of the movie "Sound of Wind", and it is also the survival state of US-funded technology companies in China behind the prism door. Before clarifying who is involved in Prism Door, these companies will have difficulty participating in the competition in many markets in China.

On Wednesday, Cisco released its first fiscal quarter report for fiscal year 2014. In this quarter, Cisco's net profit in China fell by 4.6%, and the number of orders fell by 18% year-on-year. Cisco CEO Chambers acknowledged at the financial report that the National Security Agency's surveillance activities have affected Cisco's business in China and once again denied participation in the "Prism" project.

Many overseas media such as the Wall Street Journal and Reuters believe that US technology companies including Cisco, IBM and Microsoft are causing a decline in performance due to the boycott of the Chinese government, but the above-mentioned media failed to provide any official Chinese government call to boycott related companies The evidence only cited the cover report of a Chinese financial magazine in June, and emphasized the state-owned nature of the magazine.

However, according to Tencent Technology, since Snowden revealed that the US government used US technology companies to obtain intelligence from other countries, although relevant departments have conducted investigations, no conclusive documents have been issued, and US companies have not been prohibited from participating in project bidding. It's just that the number of bids for US-funded products is very small.

Cisco losing orders

According to Cisco ’s first fiscal quarter results for fiscal year 2014 (three months ended October 26) released on Wednesday, Cisco ’s revenue was $ 12.1 billion, up 1.8% year-on-year, and net profit was $ 2 billion, down 4.6% year-on-year ; And the company expects sales in the second quarter to fall 8% to 10% year-on-year, which caused Cisco's stock price to fall 10% on Thursday.

Compared with the previous quarter, Cisco's sales in emerging markets have shrunk by 12%. This is mainly due to the fact that Cisco's sales in Asia fell by 3% during this period, and it fell by 6% in China. Cisco CEO Chambers acknowledged in the subsequent financial report meeting that the National Security Bureau ’s surveillance activities affected Cisco ’s China business and once again denied participation in the “Prism” project.

What is the real situation of Cisco in China? Cisco ’s largest agent in China, an employee of a listed distribution company on the Hong Kong Stock Exchange, told Tencent Technology that the company ’s Cisco business has suffered a serious decline, and it has not been able to complete a single business in some regions for several consecutive months. It is responsible for the Cisco branch. Nearly half of the employees have been laid off this year.

The employee revealed that Cisco had tried to establish a joint venture company with a Chinese company with better government relations in this case, but after negotiations with several companies, it was fruitless, and most Chinese companies were reluctant to visit this time. Muddy water, this company that maintained a growth rate of more than 10% in China in 2011 and 2012, has not been favored by Chinese partners for the time being.

It is reported that in the first batch of China Telecom's 2013 centralized IP equipment procurement in July this year, Cisco had no results in its traditional superior project, the high-end core router project.

Many US technology companies are involved in the prism door

In June 2013, Edward Snowden, who was a CIA technical analyst and later worked for defense project contractor Booz Allen Hamilton, disclosed the US National Security Agency's secret document on the PRISM (prism) monitoring project to "Guardian" and "Washington Post".

According to a 41-page security presentation leaked by Snowden, the National Security Agency (NSA) and the Federal Bureau of Investigation (FBI) have been collecting data from the internal servers of nine large technology companies, all participating in the program are Silicon Valley Tier 1 technology companies, including Microsoft, Yahoo, Google, Facebook, AOL, Skype, YouTube and Apple.

Later, he further exposed that the US surveillance of China "since 2009" and obtained hundreds of thousands of computers by invading the network backbone (basically all devices such as huge Internet routers) Communication situation. Although Snowden did not directly point to Cisco, but the outside world believes that Cisco is involved in the Prism Door project.

It is reported that in China's core routing market has been divided by Cisco and Juniper companies, in China's 163, 169 backbone network, Cisco equipment accounted for almost 70% to 80% of the share. At the same time, backbone routers such as international gateway nodes, super core nodes, common core nodes, and aggregation nodes are mostly Cisco products.

Who is organizing a boycott of US-funded technology companies?

The Wall Street Journal, Reuters and other overseas media believe that US technology companies including Cisco, IBM and Microsoft are causing a decline in performance due to the boycott of the Chinese government, but overseas media failed to provide evidence and only cited a Chinese financial magazine The cover report in June emphasized the state-owned nature of the magazine, but in fact this media does not have the ability and tradition to represent the will of the country.

According to Tencent Technology, since the exposure of Prism Door, although several ministries including the Ministry of Industry and Information Technology and the Ministry of Public Security have conducted investigations, no conclusive document has been issued. In the procurement bidding process of governments, telecommunications operators, banks and other units in many places, US-funded enterprises were not prohibited from participating in bidding, but the number of bids for US-funded products was very few.

An industry person in charge of government procurement affairs revealed to Tencent Technology that the crisis of trust for US technology companies in China has arisen because of the Prism Door. hair. The Chinese government has never organized a boycott against companies such as Cisco.

The industry sources revealed that last year the state authorities had expressly requested the blockade of many foreign network equipment suppliers such as F5 and Annette. The blockade at that time did not affect the overall image of American technology companies. But this year's situation is completely different. Since Prism Door is by no means a fiction, and no specific participating companies can be found, it can only "isolate" the US-funded technology companies as a whole from sensitive projects into a substantial "resistance."

He believes that before the actual participants of Prism Gate are exposed, it is difficult for US-funded technology companies to continue to gain more shares as in the past at all levels of government departments, large state-owned enterprises and financial institutions, and no one needs to organize a boycott, let alone Huawei. Chinese companies such as ZTE and ZTE are growing rapidly. Even if the technical level is poor, choosing Chinese companies is much less risky than leaking.

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