Huawei looks to cloud services in 2021 as US sanctions strangle smartphone business

As Huawei Technologies struggles under the impacts of the US sanctions, the company’s founder Ren Zhengfei said that the smartphone maker is now looking towards cloud services as its primary focus, over its smartphone and 5G operations.

Huawei

According to an SCMP report, the senior executive of the Chinese tech giant had made the announcement in an internal speech back in November 2020. The founder had said that the company must build up its strength in cloud services and that the brand needed to also make a “breakthrough” in the field. The official added that “It is impossible for us to simply follow the same path as Alibaba and Amazon … They have access to unlimited money in the US stock market.”

“Our enterprise business needs to scale back its battlefront … If our strategy is too broad, we will lose our combat strength.” Companies like Amazon are tech conglomerates with businesses spanning e-commerce, video streaming, and even cloud computing among various other businesses as well. Unlike these firms, Huawei has mostly focused on its telecom equipment services and its popular smartphone business.

As per Ren, the company should learn from companies like Amazon and Microsoft, both of which are major names in the global cloud services field. These brands focus on infrastructure as a service (IaaS) and platform as a service (PaaS). For those unaware, customers of these companies pay a fee to utilize their computing resources such as networking and data storage. At the moment, Huawei is already a leading cloud service provider in China, alongside Alibaba and Tencent. Although, its presence in the global market is still scarce, despite there currently being a surge in demand for could services.

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