Demand for cloud services is increasing and the overall cloud market is growing at an astronomical rate. Almost every company in the cloud business wants to make the most of this growth, and Huawei is no exception.
It has decided to build a global cloud network on its own public cloud. Well, if that sounds confusing, it means, the cloud data center infrastructure will be owned, managed and branded by Huawei’s public cloud partners, but it is built on Huawei’s network. In many ways, we can imagine this network to be like a Hydra creature with many heads, spreading across different regions in the world.
Essentially, it is creating the infrastructure that includes itself and its partners, so that its customer base and network is spread all over the world. With such a plan in place, Huawei wants to be one of the top five public cloud providers in the world. According to the CEO, it believes Alibaba, Microsoft, Google and Amazon Web Services to be the other four public cloud providers against which it will be competing in the future.
This is a strategic move for many reasons. Firstly, the top four companies, according to Huawei, have already established their infrastructure, so it will require massive investments to compete with them. By partnering with other companies, it may be much easier for Huawei to penetrate into different markets.
Secondly, managing the entire infrastructure can be mind-boggling to say the least. The cost and resources involved will be enormous, so by leasing out its infrastructure, Huawei can have a more workable model that will also be load-friendly.
Lastly, it can avoid vendor lock-ins as all its partners don’t necessarily have to use this network. They can partner with Microsoft, Google, Alibaba or AWS for other operations too. In fact, Huawei offers hybrid solutions that make it easy for applications and customers to integrate with other third-party cloud platforms that include the platforms of its competitors as well.
This idea and its implementation has been progressing at a rapid pace. This unit of Huawei was first formed in March 2017 and since then, the company has seen a 238 percent increase in its customer base. This goes to show that many of its customers are looking forward to this public cloud product from Huawei.
So far, it has also released 40 new cloud services out of the total 85 cloud services it has released so far. This includes a data warehouse, DDoS protection and content delivery network that are having a big impact on its clients’ operations.
Many notable companies such as Volkswagen, Mercedes-Benz, Industrial bank of China and Philips are using Huawei’s products. It has also partnered with cloud service providers and telecom companies like Deutsche Telecom, Telefonica and Orange to further its plans.
Overall, it seems ambitious, but it also looks like Huawei has a firm plan in place to further its ambitions. The next few months can give us a better idea of the progress of this product and its acceptance among the global cloud clients.