Huawei launches cloud services after US-China row

cloud market

Chinese tech giant Huawei has made a flurry of announcements signalling the company’s entrance into the cloud market – just days after intense negotiations between US President Donald Trump and Chinese Premier Xi Jinping over the future of digital enterprise. 

Huawei has launched its first public cloud service, called ServiceStage, and says it will be open to developers.

Speaking at a company event, Huawei’s president of IT product line, Zheng Yelai, said: “Cloud technology is becoming the new growth engine as digital transformations accelerate. Huawei has continued to step up its R&D, one result culminating in the cloud service offering.

“Huawei has become the preferred partner for many of the world’s top customers and will continue to provide high-quality cloud services with our partners as we persist in building a healthy ecology in the sector.”

Despite the massive size of Huawei’s overall business, the giant of the cloud market – Amazon – is unlikley to be too perturbed, since it’s market share is bigger than the next three cloud services providers combined.

And considering that the next three are IBM, Google and Microsoft, that is an unimaginably huge share of the cloud market.

However, Huawei says its enterprise business has grown 47 per cent over the past year and it looks forward to more growth in the current and future years.

Huawei’s announcements of its push into the digital enterprise sector – the company is more well-known for making electronics hardware – comes days after the first meeting between US and Chinese leaders.

Ahead of the meeting, the US administration of Trump had produced a report – Foreign Trade Barriers – in which it said China was still largely closed to outside companies, which seems unfair.

The Trump report says: “In major markets, including China, cloud computing services are typically offered through commercial presence in one of two ways:

  1. as an integrated service in which the owner and operator of a telecommunication network also offers computing services, including data storage and processing function, over that network; or
  2. as a stand-alone computer service, with the customer responsible for arranging connectivity to the computing service site.

“Although China’s GATS commitments cover both options, neither is currently open to foreign-invested companies.”

GATS stands for General Agreement on Trade in Services, and relates to a broad, over-arching trade agreements between major economies.