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Huawei's Cloud Unit Reaches 1 Million Customers

By Zhang Erchi and Tang Ziyi / Apr 01, 2019 03:46 PM / Business & Tech

Photo: VCG

Photo: VCG

Embattled telecoms giant Huawei has picked up 1 million customers in its cloud service arm since it launched two years ago, according to Zheng Yelai, president of Huawei's Cloud Business Unit (Cloud BU).

Over half of the unit's income comes from internet companies, Zheng said in an interview on Friday, without disclosing further details.

Huawei, which traditionally has sold hardware, has bet on cloud services and artificial intelligence (AI) in recent years – technologies that could power future generations of its products. The cloud service unit offers complex data-storage options for customers who want to transfer their computing tasks off-site.

Zheng said Huawei’s recent marketing strategy has been to prioritize selling cloud services, as customers migrate from buying hardware and software to cloud offerings.

Most of China’s top tech companies have made big pushes into cloud computing services. Huawei's cloud business, which targets its services at government authorities and companies, only accounts for 0.9% of the total public cloud market in China in 2018. Its rivals, the cloud business units of Alibaba and Tencent, account for 45.5% and 10.3% of the market respectively.

Read Caixin’s full coverage of Huawei here.

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