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Huawei shuts down AI and cloud business group

Huawei-Computer-Monitor

A recent report reveals that, only after 14 months, the Huawei is closing its core cloud and artificial intelligence business group.

Apparently, this is due to Huawei’s difficulties in transforming itself into a service provider from being a device manufacturer.

In an internal memo sent out last April 2, the server and hardware storage operations will be handed to the Huawei internet products and solutions department. They will be behind the company’s product research and development.

Zhang Pingan will now be the cloud business unit president after Richard Yu was promoted to president for the combined cloud and AI business group and cloud business unit.

After the effects of the US ban, Huawei tried to restructure itself to become a service provider from being a hardware supplier. Huawei has put up a couple of core business segments: there’s the carrier network business group, consumer business group, and enterprise business group.

Huawei’s cloud computing tech was up since 2010. By 2017, they created a dedicated business unit in an attempt to tap the cloud service market.

In fact, Huawei Cloud is the second biggest provider in China by Q4 of 2020, just below Alibaba.

Huawei executive Ken Hu said that Huawei Cloud was able to have a 168% year-on-year growth.

Founder Ren Zhengfei said in an internal meeting that they plan to create a world-leading ICT infrastructure, but its cloud services are at a “middling level” and haven’t reached the advanced stage.

An employee from Huawei then revealed that Huawei Cloud fails to compete with its rivals as they arrived a little late to the market.

Via: Nikkei Asia

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