Huawei aspires to compete with Amazon in field of general cloud computing

Apr

11

2017

China’s telecoms and smartphones maker Huawei said Tuesday it aims to compete with Amazon and Alibaba Holdings as a global provider of cloud services.

The Shenzhen-based company, which last month announced its lowest five-year profit growth, said it would expand into cloud computing with a dedicated division that would set another 2,000 employees this year.

“We were focusing on private cloud computing and we succeeded,” said Qing Yili, head of the new cloud computing unit, at the annual meeting of analysts. “Now we aim to strengthen our offerings from general computing solutions.”

General cloud services include a common data infrastructure, rather than the dedicated infrastructure that customers create. Market research firm Gartner expects the global cloud services market to reach $ 383 billion by 2020 from $ 247 billion in 2017.

With the expansion of cloud computing, Huawei, which focuses on the hardware industry, hopes to continue to grow software-based revenues as growth in smartphone sales slows and spending on telecommunications infrastructure slows.

In China, Huawei is seeking to compete with its fellow Alibaba Cloud, which will be its biggest rival in global cloud services, along with the latest entrants to the market, a conglomerate that combines Dalian Wanda Group and IBM.

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

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