Huawei hopes to reach cloud services in 2021
Huawei hopes to reach cloud services in 2021

Huawei founder (Ren Zhengfei) said: Due to the restrictions imposed by the US sanctions on Huawei 5G companies and smartphones, the Chinese technology giant should prioritize cloud services.

In an internal speech in November and at an employee forum two days before the new year, the founder of Huawei admitted that cloud services are not strong and that the company needs to make progress in this area. .

Regarding Huawei's status as an unlisted company, he said: We cannot go the same way as Alibaba because it can get unlimited money in the US stock markets.

He added: Our institutional work should reduce the effectiveness of the struggle. If our strategy is too broad, we will lose combat effectiveness.

Alibaba, which is listed on the New York Stock Exchange, has a variety of commercial activities such as e-commerce, video streaming, cloud computing, etc., while Huawei is mainly focused on communications and smartphones.

Cheng Fei said: Huawei should build on Microsoft and Amazon's successful experience in global cloud services by focusing on infrastructure like IaaS and platform like PaaS.

Customers usually pay for computing resources like network and data storage through IaaS. At PaaS, you pay for a range of computing resources, programming infrastructure, and online software delivery.

According to the founder of Huawei, the company is expected to attract large corporations and companies in key industries as cloud clients.

Although Amazon and Microsoft hold a leading position in the global IaaS market, Huawei is one of the best Chinese providers like Alibaba and Tencent.

In the third quarter of 2020, Alibaba accounted for more than 40% of the Chinese market, while Huawei and Tencent each own nearly 16%.

As companies are moving their business online in response to the coronavirus pandemic, the demand for cloud services has increased over the past year.

The government's "New Infrastructure Initiative" has boosted spending on cloud computing in China, which aims to accelerate spending in areas such as 5G networks and data centers.

After the US government described it as a security risk that led to an escalation of tensions with China, Huawei has worked hard to reshape its business.

As of mid-2019, purchases of US products and services without Washington's approval have been banned.

US sanctions are also forcing foreign chip makers who use US technology to apply for a license to sell products to Huawei.

Huawei's rotating chairman said in September last year, "We still have enough chips to run the company."

At the same time, Huawei's stock of smartphone chips has been shrinking to the point that cell phones, including advanced chips, must be switched off.

Late last year, the company decided to sell Honor's budget phones in hopes that the split would free Honor from US sanctions.

Huawei doesn't seem to be abandoning its consumer business. It recently announced that it plans to launch HarmonyOS on all of its smartphones and many other devices this year. It is Google's preferred choice for replacing Android OS.

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