Chinese Telecom Giant Huawei to scrape its AI and cloud business group
8th April 2021
"This sudden change is an obvious reflection of Huawei's struggle to transform from a hardware supplier to a services provider. "
Facing immense difficulties in the transformation from device maker to service provider, Huawei Technologies is closing its cloud and AI business group only after 14 months of its operation.
As announced on April 2 in an internal memo group activities will be split into two units.
Server and hardware storage operations will be assumed by Huawei's internet products and solutions department.
Zhang Pingan is taking over from Richard Yu who was appointed president of the cloud and AI business group.
This sudden change is an obvious reflection of Huawei's struggle to transform from a hardware supplier to a services provider.
The company started its cloud computing strategy around 2010 and expanded into the cloud services market in 2017.
It became China's second-largest cloud services provider in late 2020.
The pandemic had brought forward one to three years of full adoption of cloud services by global enterprises, and that revenue generated by Huawei Cloud grew 168% year on year.
They aimed to build world-leading information and communication technology infrastructure, but the cloud services were yet to reach an advanced stage.
Their cloud services were lagging behind the rival companies due to their late entry into the particular market.
Compiled by :
Raj Kapali
Raj Kapali
