Huawei adds Cloud and AI as its fourth business group (BG)

Huawei has recently reorganized its Cloud and AI business division as its fourth core business group (BG) similar to the other three businesses including Carrier, Enterprise, and Consumer BGs. This signals a new and big shift in its business strategy.

The Cloud and AI BG will be headed by Hou Jinglong, former President of Huawei’s Cloud & AI Products & Services. Hou is one of the key people behind the company’s entry into the cloud and AI business.

However, the details and direction of this adjustment are still under discussion and not announced publically.

According to the information, this new business group will primarily cover public cloud, private cloud, big data, AI, computing, storage, and IoT services.

Earlier this month, this structural reorder was also hinted by the Eric Xu, Huawei’s Rotating Chairman.

“The goal of organizational transformation in our ICT business is to support our commercial success in cloud and computing,” said Xu.

At Huawei Analyst Summit in 2019, Managing director David Wang unveiled Huawei’s Cloud Only strategy to integrate all of its resources from chips and data centers to hardware, software and computing devices to make Huawei’s cloud the only full-stack services in China.

The company says AI is a core driver for enterprises for the cloud. Huawei predicted that by 2025, all companies will use the cloud with 97% of the large enterprises and 77% of the cloud applications will use AI.

Data from China’s Ministry of Industry and Information Technology (MIIT) show that an additional one million enterprises in China will apply cloud computing to their production, operations, and management by 2020.

With its recent step-ups in the industry, Huawei has now become the fifth largest public cloud operator in China behind Alibaba, Tencent, China Telecom, AWS. The top four counts a total of 75% of China’s IaaS/PaaS/SaaS market scale of US$5.42 billion in the first half of 2019.

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