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Huawei plans to make a big leap in the rankings among the best cloud service providers in Asia in the next three years

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Huawei Technologies Co. plans to burst into the upper echelons of cloud service providers in the Asia-Pacific region, as the company heads into a growing market as smartphone and network equipment companies struggle under US trade sanctions.

“We are looking forward to becoming the top three cloud service provider in the Asia Pacific region in the next three years,” said Zeng Xingyun, Head of Huawei Cloud Operations in the region. South China Morning Newspaper In Hong Kong this week. “In five years or more, we aim to do even better.”

This driven goal would pit Huawei, which was added to Washington’s trade blacklist in 2019, against major competitors Amazon Web Services (AWS), Microsoft Azure and Alibaba Group Holding’s cloud unit in e-commerce — the three largest infrastructure as a service. . final year in the Asia-Pacific region, according to data from technology research firm Gartner. Ali Baba owns Mail.

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Huawei Cloud was the second cloud provider in China — the world’s second largest cloud market following the United States — in the quarter ending in March, with a share of 19.7 percent, according to a June report from research firm Canalys. Alibaba Cloud continued to dominate the domestic market in the alike period with a share of 39.8 percent.

Shenzhen-based Huawei announced Tuesday that it has committed $100 million to urge startups in the Asia-Pacific region to use its cloud computing platform.

Huawei’s strategic focus in cloud services was outlined by Ren Zhengfei, the company’s founder and CEO, in an inner speech delivered in November final year. Ren said Huawei, which has been hit by US sanctions, should make cloud services a priority and pursue a “breakthrough”, similar to industry leaders AWS and Microsoft Azure.

The stakes are lofty for privately owned Huawei, with public cloud services in the Asia-Pacific market expected to reach $48.4 billion this year, up from $36.4 billion in 2020, according to a report from technology research firm IDC in March.

Cloud computing services enable businesses to purchase, sell, rent, or distribute a range of software and other digital resources as an on-demand service over the Internet, much like electricity from the power grid. These resources are managed within data centers.

Jay Chan, Vice President of Huawei Technologies Co., Asia Pacific Operations.  Photo: charity

“This is the region we want to grow aggressively,” Jay Chan, vice president of Huawei’s Asia Pacific operations, said in an interview. “We put resources into software, and it’s impact-free [US] Penalties “.

Huawei, the world’s largest maker of communications equipment and formerly the largest smartphone seller in China, has been forced to make adjustments due to US sanctions, according to Chan. The company has struggled with stricter restrictions imposed final year, which cover access to chips that were developed or produced using US technology, from anywhere.

“So we’re making some strategic decisions for our entire business,” Chan said. “We hope we can accelerate our growth in cloud software and services.”

The challenge for Huawei is to preserve pace with the expansion initiatives of the world’s leading cloud service providers. AWS, Microsoft Azure and Google Cloud accounted for 61 percent of whole cloud spending of $47 billion in the second quarter, according to Canalys.

Huawei allocates $100 million to startups in the Asia Pacific region to use its cloud services

Huawei Cloud’s steady growth will be on the back of winning multiple major deals with government clients, financial institutions and logistics companies, according to Zeng.

“We have established pleasing relationships with many industry-leading clients in various countries, which has helped us expand our business in the Asia Pacific region over the former few years,” he said.

The company is the advantage of the many relationships it has built over the years as a supplier of telecom network equipment to various governments in the region. It has also trained a group of more than 40,000 people in the region in information and communication technologies, so that they can play a key role in helping to digitally transform industries across Asia.

“In the region, we attach distinguished strategic importance to Singapore,” Chan said.

While many cloud services have become a commodity, Chun Moon Hong, CEO of online car market UCARS in Singapore, said Huawei Cloud is distinguishing itself in emerging areas such as artificial intelligence.

Echoing the difference, Shonali Krishnaswamy, chief technology officer of analytics firm AIDA Technologies in Singapore, said many companies in the city state are planning to shift themselves from old-school software vendors to SaaS platform operators, which will increase demand for cloud service providers like Huawei.

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