Tech

Huawei Plans To Get Big Share In Data Center Gear and Entreprise Cloud Industries

By Victor Thomson , Sep 01, 2016 04:00 AM EDT
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Chinese technology provider Huawei is looking to grow its enterprise division in order to increase its market share in fields such as data center gear and enterprise cloud industry.

Huawei's Plans

By the year 2020, Huawei plans to grow its $60 billion in revenue to an impressive $150 billion. The high-tech Chinese company is best known as a manufacturer of gear for the telecom industry. Now, the company is counting on its enterprise division in order to generate much of this planned growth.

One of the key factors to that growth is the cloud. At this week's Huawei Connect conference in Shanghai, the Chinese high-tech company presented its comprehensive "Cloud 2.0"entreprise cloud strategy.

According to Forbes, cloud computing has already been around for about a decade now. For this reason, for a newly arrived company in this industry, such as Huawei, it's risky to place such a large bet on its enterprise cloud strategy. However, the Chinese company plans to counter that risk by using its outstanding expertise in multiple industries.

According to Bloomberg, Huawei also aims to break into another niche of the tech business. The Chinese tech company is planning on selling computing gear for the world's biggest data centers. These giant buildings packed with miles of data-carrying cables and racks of computing equipment are the invisible locomotives of the digital world. They enable everything in the digital world, from the databases managing Walmart's supply chain to the Facebook photos users shared with their friends.

In order to take a bigger share on this data centers market, Huawei plans to achieve customers such as Microsoft, Facebook, Amazon and Google. At the moment, those companies tend to buy made-to-order gear from no-name Taiwanese factories.

Huawei said that, by 2020, it aims to sell about $10 billion worth of software and gear to the global data-center powerhouses. For a relatively newcomer to data center gear, that might sound as an ambitious goal. However, Huawei is a fast growing Chinese company that definitely should not be underestimated.

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