Huawei public cloud upgrade - "Huawei cloud must exceed Ali in three years"

Huawei announced today that it has announced internal restructuring, which is called supporting business development. Cloud BU will be moved to Huawei Group and become a company-level organization.

In March of this year, Xu Zhijun, vice chairman and rotating CEO of Huawei, announced the establishment of Cloud BU, which is responsible for the public cloud, and said that it will increase the investment of 2,000 in 2017. It is worth noting that Cloud BU was established under the product and solution department, and Zheng Yelai, president of IT product line, also served as president of Cloud BU. In less than half a year, Cloud BU was upgraded from a secondary organization to a primary organization.

Huawei public cloud upgrade - "Huawei cloud must exceed Ali in three years"

According to Caijing, through this adjustment, Cloud BU will not only be accounted for separately, but will also appear in Huawei's 2017 financial report. Cloud BU will have its own HR department, CTO office, strategy and business development department and financial management department. In addition, this adjustment did not involve the core management.

In fact, in order to promote the development of cloud business, Huawei founder Ren Zhengfei began to visit provincial leaders frequently at the beginning of this year, and signed contracts with many provinces in cloud computing, big data, and smart cities. In addition to the domestic, Ren Zhengfei also personally flew to many countries to meet the leaders, and proposed the idea of ​​increasing overseas investment and developing cloud business overseas.

At the Huawei analyst conference held in April this year, Xu Wenwei, Huawei's managing director and president of the company's strategy MarkeTIng, proposed the goal of promoting digital transformation in all walks of life. He believes that cloud services are the basis for the digital transformation of operators and all walks of life, so Huawei has established Cloud BU in line with the trend. “We will invest heavily in building an open public cloud platform; we will work together to build a cloud ecosystem. By helping operators network and business cloud, together with operators, we will serve the vast number of industry customers with cloud services. The digital transformation of the industry. At the same time, Xu Wenwei shouted the goal of "Huawei public cloud must exceed Ali in three years."

Huawei public cloud upgrade - "Huawei cloud must exceed Ali in three years"

In addition to Ali, Amazon AWS and Microsoft Azure are also the enemy of Huawei's cloud business at home and abroad. Xu Zhijun, vice chairman and rotating CEO of Huawei, believes that Amazon and Microsoft have advantages in the US and developed markets, while Huawei mainly cooperates with local telecom operators in Europe and has an operator base. At the same time, Huawei has extensive presence and basic advantages in developing countries, and will coexist in the future with Amazon and Microsoft.

During the Huawei analyst conference, Zheng Yelai, president of Huawei Cloud BU and president of IT product line, also talked about the fierce competition faced by Huawei in the public cloud when interviewed by Sina and other media.

Zheng Yelai believes that the market space of enterprise clouds is very large. For Huawei, it has a differentiated advantage compared to its rivals. First, Huawei adheres to the open cloud architecture based on OpenStack, so that customers are not bound by a certain service provider. Secondly, Huawei has more than 20 years of service enterprise experience, and has established trust with customers, and will not worry about enterprise data security. User privacy issues. Finally, in the process of enterprise migration to the cloud, it is the accumulation of long-term historical applications and the accumulation of data, which requires the participation of partners. Huawei currently has 12,000 partners worldwide, and partners around the world are involved in the Cloud BU business ecosystem.

However, with the intensification of competition in the public cloud market, Tencent Cloud and China Telecom have frequently won the bid for a penny, and Zheng Yelai clearly stated that Huawei will not take the price war route.

In August, Ali’s earnings report showed that Alibaba’s revenue for the quarter reached 2.431 billion yuan, and the number of paid users of cloud computing exceeded 1 million for the first time, making it the first cloud computing company in Asia to reach a million users. While the scale of revenue and the growth of paying users, Alibaba Cloud is also constantly reducing the price of some products.

In the public cloud market, Huawei has its own resources and technological advantages. However, under the background of strong enemies and constant price wars, whether Huawei's cloud business can achieve breakthrough is still unknown.

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