Huawei To Shutter Cloud Computing, AI Business Groups Amid Restructuring As US-China Trade War Bites

The information reveals troubles confronted by the Shenzhen-based agency, particularly amid the continued US commerce warfare on China and ongoing COVID-19 pandemic, in line with media stories.

Chinese telecoms large Huawei Technologies has shuttered its core cloud and synthetic intelligence (AI) teams after simply 14 months of operations, Caixin Global reported on Tuesday.

A server and {hardware} storage unit in addition to web merchandise and options division tasked with product analysis and growth (R&D) have been fashioned amid the dissolution, the agency mentioned in a 2 April inner memo.

The agency has appointed Zhang Pingan as president of its cloud enterprise unit to switch former president of cloud and AI enterprise group, Richard Yu.

The restructuring efforts reveal the corporate’s battle to shift to a providers supplier, in line with Nikkei Asian Review.

Huawei at the moment consists of its provider community, shopper and enterprise enterprise teams. The firm’s cloud computing technique was launched in 2010 and opened its enterprise unit within the cloud providers market in 2017.

Data from analysis agency Canalys reveals Huawei Cloud was China’s second greatest cloud service supplier in This autumn 2020, gaining 17.4 p.c of the mainland’s market share. Alibaba Cloud stays the highest agency with a 40.3 p.c market share.

But the corporate’s cloud merchandise had been behind rival corporations attributable to Huawei’s late arrival to the sector, a Huawei worker instructed Caixin within the report.

The developments come amid the continued US commerce warfare on China, which noticed the Chinese telecoms agency blacklisted together with quite a few Chinese tech firms, together with Shanghai-based chipmaker SMIC, ZTE and dozens others.



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