(Ren Zhengfei), founder of Huawei, said: The Chinese technology giant should make cloud services a priority, in light of the US sanctions that put a stranglehold on the 5G business and Huawei’s smartphones.
And in Speech An internship delivered in November and participated in a staff forum two days before the new year, The founder of Huawei admitted that the cloud services were not strong and that the company needed to make a breakthrough in this area.
Referring to Huawei’s status as a non-publicly traded company, he said: It is impossible for us to follow the same path as Alibaba, as it has access to unlimited money in the US stock market.
He added: Our institutional work needs to reduce its combat front, and if our strategy is too broad, we will lose our combat power.
Alibaba, listed on the New York Stock Exchange, owns multiple commercial activities, such as: e-commerce, video broadcasting, cloud computing, and others, while Huawei mainly focused on communications and smartphones.
Chengfei said: Huawei should learn from the success of Microsoft and Amazon in the global field of cloud services by focusing on infrastructure as IaaS and the platform as PaaS service.
Customers typically pay a fee to use computing resources, such as: networking and data storage, at IaaS, while they pay PaaS against a set of computing resources, programming infrastructure and online software delivery.
According to the Huawei founder, the company should attract large corporations and companies in key industries as cloud clients.
While Amazon and Microsoft are leading the IaaS market worldwide, Huawei is one of the major suppliers in China alongside Alibaba and Tencent.
In the third quarter of 2020, Alibaba acquired more than 40 percent of the Chinese market, while Huawei and Tencent each own Approximately 16 percent each.
Cloud services have seen a surge in demand in the past year as organizations have moved their activities to the internet to deal with the coronavirus pandemic.
China’s cloud spending has been boosted by the government’s New Infrastructure Initiative that seeks to speed up spending in areas such as 5G networks and data centers.
Huawei has been struggling to reinvent its business after the US government described it as a security risk amid escalating tensions with China.
It has been banned from purchasing US products and services without Washington’s approval since mid-2019.
US sanctions also require foreign chip makers who use US technology to apply for a license to sell to Huawei.
“We still have enough chips for our corporate business,” the rotating chairman of Huawei said last September.
At the same time, Huawei’s stock of smartphone chips has dwindled to the point where it has had to stop phones including its advanced chips.
Late last year, the company opted to sell the budget phone brand Honor, in the hope that the separation would allow Honor to get rid of US sanctions.
It seems that Huawei has not abandoned its consumer business, It recently announced that it plans to roll out HarmonyOS, its own alternative to Google’s Android operating system, across all of its smartphones and many other devices this year.