As scope of business narrows, Huawei looks to mobilise cloud business

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As scope of business narrows, Huawei looks to mobilise cloud business

Huawei Technologies Co., the Chinese technological giant that has been barred by the Donald Trump-led United States’ (US) government, is eyeing the development of its cloud business, according to a Financial Times report.

As it stands, Huawei’s sanctions do not extend to it using American software chips and the technological conglomerate is keen on pushing its services in order to be able to survive after the sanctions imposed against it.

Huawei channelises effort to build cloud business

Although its cloud arm is still nascent, the company had, in January 2020, put its cloud-based business on the same platform as its telecoms equipment and smartphones sectors.

The Chinese firm’s cloud services have myriad offering for businesses including purchasing computing storage and power and even getting artificial intelligence’s access. Considering that the Trump-led Republican administration had imposed sanctions on the company on account of national security risks, it remains to be seen as to whether the company’s regathering of its business endeavour would go noticed by the administration.

Back then, refuting the allegations, the company said in a press note, "We would never compromise or harm any country, organization, or individual, especially when it comes to cyber-security and user privacy protection."

Since the company was sanctioned in 2019, several other countries joined and supported the United States’ call. These include Australia, New Zealand, and the United Kingdom. The UK announced that Huawei phones would not be eligible to get access to the country’s 5G networks.

As such, cellular service operators in the UK will have to stop using Huawei’s 5G networks by the end of 2020. Likewise, they will also need to phase out its exiting 5G kits by the end of 2027. Recently, India, too, joined the list of countries denouncing Huawei.

Ongoing tensions at the border between India and China in India’s eastern border has led to the Narendra Modi-led Indian government to remove Huawei from its cellular networks. The Indian government also cited concerns about Chinese companies such as Huawei investing in the Indian infrastructural sector.

Recently, there have been several calls for banning of Chinese-produced products in the Indian markets although the popularity of Chinese products especially smartphones continue to soar among Indians due to their lower price point.