Huawei is evolving its cloud business by investing in a public cloud platform. During the company’s annual global analyst summit in Shenzhen, China, this week, Eric Xu, Huawei’s rotating CEO, said the company is committed to working with operators on their cloud services as well as building Huawei’s own public cloud.
According to Mobile World Live, which has analysts attending Huawei’s analyst conference, Huawei plans to create a new cloud business unit and will invest $1 billion in the initiative. It will do that by first transforming itself into a digital company and then working with operators to help them change their businesses.
William Xu, executive director and chief strategy marketing officer at Huawei, said that according to the company’s 2017 Global Connectivity index, cloud computing is gaining steam on a regional and national scale, and many industries are seeing the importance of the cloud. The company also touted its All-Cloud platform, which has three key features including hardware resource pooling, which allows the pooling of computing and storage resources; distributed software architecture, which includes scalability, service quality, and service agility; and automated operations, which means the network is self-healing and optimized for efficiency.
This isn’t the first time Huawei has talked about the public cloud. At the 2016 analyst conference, company executives made many references to leading U.S. cloud platforms, including Amazon, Microsoft, and Facebook, and talked about how Huawei could help telecom companies move as quickly as possible to the cloud model.
Huawei’s Not Alone
Of course Huawei isn’t the only company looking to take market share away from the big public cloud providers. In January China Mobile announced it had deployed nearly 2,000 public cloud servers at two existing data centers in Beijing and Guangzhou. China Mobile chose Nokia’s Nuage Networks software-defined networking (SDN) technology for the project.
Plus, just last week European cloud hosting provider OVH announced it was buying VMware’s vCloud Air business as part of the expansion of its cloud business. OVH recently received a $250 million investment from KKR and TowerBrook to help fund the company’s U.S. expansion and fuel competition with big public cloud providers like AWS and Microsoft.