Huawei has emerged as a big competitor in cloud computing in China.
Illustration:
Siung Tjia/WSJ
China’s Huawei Technologies Co. has viewed its 5G organization put up with due to the fact of constraints imposed by the U.S. and other nations around the world. But its booming software package business enterprise is throwing the telecom giant a lifeline.
Huawei’s business organization team has emerged as its fastest-rising division recently, as the company’s handset product sales plunge and it faces setbacks in its organization with telecom operators. Several nations around the world, led by the U.S., have banned the use of Huawei tools in 5G networks, and the U.S. has also imposed broad controls on the use of American know-how by the enterprise, blocking its acquisition of quite a few state-of-the-art chips.
Huawei’s huge-ranging company division sells cloud solutions, software and infrastructure to businesses, governments and other institutions—and does not depend as seriously on foreign chips and other factors. The division grew 23% in 2020—the most modern yr for which the company has produced fiscal results—bolstered by booming development in its cloud-computing earnings.
Huawei has emerged as a key competitor in cloud computing in China, with 17% of the industry in the third quarter of past year, making it the second-major service provider of cloud providers in the place, according to sector tracker Canalys. It was at the rear of
Alibaba Team Keeping Ltd.
, whose share stood at 38.3%.
In addition, Huawei has reported it has viewed strong demand from customers for technology utilized in wise cities and other electronic infrastructure services for businesses and governments.
Huawei executives have said the corporation is reorienting towards application, autos and other enterprise parts that really don’t involve as a lot of international chips. “Our general strategy and precise initiatives are all developed to make sure that we could survive and build whilst remaining on the entity list for a extensive time,”
Eric Xu,
a senior Huawei government, said through a push convention final calendar year, referring to the U.S. export limitations.
Mr. Strumpf is a Wall Avenue Journal reporter in Hong Kong. He can be attained at [email protected].
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Appeared in the March 14, 2022, print edition as ‘A Lifeline for Huawei.’