As reported by the South China Morning Post, Huawei founder Ren Zhengfei said his company should focus its energy on cloud computing in 2021. The Chinese giant is fighting against it because of the US sanctions and wants to take advantage of the popularity of this technology after the Covid-19 pandemic.
If, by then, Huawei has mainly specialized in smartphones and telecommunications, it will have to change its mindset to continue to be successful. In fact, the US-China trade war has had a significant impact on the company, which can no longer integrate Google services into its devices. As a result, Huawei was also forced to resell Honor, its low-cost smartphone division.
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Same story in 5G. Following American threats, many countries have decided to pull Huawei out of their infrastructures. This is especially true for the UK and Sweden. In France, an “anti-Huawei” law was passed to restrict the devices developed by the Chinese company. In addition, foreign chip manufacturers using American technology must now obtain a license to sell hardware to Huawei. Result: The company almost lacked the chips for its smartphones.
To overcome these different areas, Huawei therefore has an idea: the development of its branch for cloud computing. During an internal speech in November recently shared with employees, Ren Zhengfei said his company should take inspiration from Amazon and Microsoft in this sector. The two giants do indeed offer IaaS (Infrastructure as a Service) and PaaS (Platform as a Service) services and dominate the international market in each of these sectors. According to its founder, Huawei must therefore focus on attracting large companies and companies in large industries as cloud customers.
As a reminder, Alibaba holds more than 40% of the Chinese cloud computing market, compared to 16% for Huawei, but also for Tencent. The company must therefore double its energy to optimize its services both in its country and in the rest of the world.