China’s tech giant Huawei has decided to disband its cloud and artificial intelligence (AI) group in the 14 months since its inception, despite investing significant resources.
The Shenzhen-based company has accelerated its diversification into the cloud market following US sanctions on its consumer goods business. In January 2020, we created a new department by combining cloud services and AI units.
According to analyst company Canalys, Huawei Cloud became China’s second largest cloud service provider in the fourth quarter of 2020, with a market share of 17.4%, despite delayed entry into the game.
According to a recent report, Huawei has pledged to invest $ 1.5 billion in a new services sector, taking advantage of its recent success.
However, the closure of the division means that hardware vendors, whether they are home-based companies such as Tencent or Alibaba, or global providers such as Amazon, Google, or Microsoft, are struggling to compete with established cloud players. is showing.
According to the internal Huawei memo seen by CaixinThe Server and Storage Product Unit will be part of Huawei’s Internet Products and Solutions division, renamed ICT Product Solutions and will handle product research and development.
However, it’s unclear if this means Huawei will withdraw completely from the cloud space, or if the closure of the department is only part of the company’s internal restructuring.
Via: Nikkei Asia
Huawei shuts down cloud and AI business groups in just a year
Source link Huawei shuts down cloud and AI business groups in just a year