Huawei re-org: Chinese giant merges its cloud and compute business units

Reports of cloud team's demise may be premature

Chinese tech giant Huawei has conducted an internal re-organisation and The Register understands one result is its cloud and business computing groups have come together under new leadership.

A report from China’s Caixin, which says it has seen an internal memo from Huawei, states the Chinese company is “closing its core cloud and AI business group,” with the result that the company’s enterprise hardware was sent off into an infrastructure business unit.

The Register understands that the cloud group has been combined with Huawei’s computing business into what’s termed internally as a “Cloud Business Unit.”

Hybrid cloud has become a hugely popular choice for enterprise IT shops, so tossing Huawei’s servers and storage business into a bucket named “cloud” seems sensible.

The Register understands the re-org also aims to make Huawei’s cloud products more relevant across its business. In past years, Huawei has told your correspondent that most of its storage and server sales outside China are attached to new telecoms network deals.

5G networks welcome commodity infrastructure and are assumed to be heavily virtualised and to operate at substantial scale – just like clouds. Making Huawei’s cloud kit more relevant to its 5G push again looks sensible.

We’ve no insights into the AI unit and its fate, although scarcely a day goes past without someone trying to have us write that AI is now utterly ubiquitous. Maybe Huawei reached that conclusion, too, and spread it around. ®

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