Huawei is closing its cloud and AI business group after only a year
Chinese giant had only recently pumped significant resources in the new group
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Chinese tech giantHuaweihas decided to break up its cloud and artificial intelligence (AI) group, despite dedicating significant resources during the 14 months since its inception.
The Shenzhen-based firm accelerated its diversification into the cloud market in response to theUS sanctionson its consumer products business. In January 2020, it combined thecloud servicesand AI units to create a new division.
According to analyst firm Canalys, despite being a late entrant in the game, Huawei Cloud quickly became China’s second-largest cloud services provider in Q4 2020, with a market share of 17.4%.
Recent reports had claimed that Huawei, riding on the recent successes,had committedto investing $1.5 billion into the new services division.
Late entrant
However, shuttering the division is an indication of the hardware vendors’ struggles to compete with the established cloud players, be it home-based firms like Tencent and Alibaba, or global providers likeAmazon,Google, andMicrosoft.
According to an internal Huawei memo seen byCaixin, the server and storage products unit will become part of Huawei’s Internet Products and Solutions Department, which will be renamed ICT Product Solution and handle product research and development.
However, it isn’t exactly sure if this means that Huawei is exiting the cloud space altogether, or whether the closure of the division is just part of an internal restructuring at the company.
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Via:Nikkei Asia
With almost two decades of writing and reporting on Linux, Mayank Sharma would like everyone to think he’sTechRadar Pro’sexpert on the topic. Of course, he’s just as interested in other computing topics, particularly cybersecurity, cloud, containers, and coding.
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