Huawei Takes Aim at Amazon and Alibaba for Public Cloud Service

Huawei is looking to compete with Amazon.com and Alibaba as a global provider for public cloud services.

According to a Reuters report, while the Chinese tech giant reported slow profit growth, they are looking to expand in cloud computing with a dedicated division that will recruit 2,000 more people this year.

“We used to focus on private cloud and did well,” Zheng Yelai, president of the new unit, said at an annual analyst meeting. “Now the purpose is to strengthen our public cloud offering.”

Previously a hardware player in the cloud computing arena, Huawei focused on private cloud enterprise offerings purpse built for individual customers. Turning to public cloud, Huawei is looking to operated a shared infrastructure and generate revenue from providing platform as a service, such as AWS cloud platforms. Gartner expects the market for public cloud services to reach $383 billion by 2020 from $247 billion in this year.

In Malaysia, Huawei is working with Redtone to provide cloud services relying on Huawei hardware. In China, its biggest rival in public cloud services would be Alibaba Cloud, while the latest market entrant is conglomerate Dalian Wanda Group Co Ltd in partnership with IBM.

Eric Xu, deputy chairman of Huawei’s board and one of three rotating chief executive officers, said Huawei’s global network of telecoms clients give the firm a unique advantage. “Compete and coexist with AWS and Microsoft, I believe that is the trend we are going to see.” Xu said, referring to Amazon Web Services and Microsoft Azure.

Xu also said Huawei would not compete for market share by offering services at extremely low prices.

Huawei earlier said it expects its cloud computing revenue to reach 10 billion yuan by 2020.

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