According to Global Times Huawei is scaling back their enterprise businesses. The reason for this is to focus on more strategic areas. CEO Ren Zhengfei said “because we are a company with limited power, we must do well and fine-tune the projects we are going to do.
We must seize opportunities in the areas where we can, focus our energies, and do a good job in a down-to-earth manner. Only then can we truly find a better solution than others.
The CEO of Huawei also says that they must take advantage of its 30 years of network experience to create a unique advantage. Huawei scaling back enterprise businesses can help achieve this. While learning from Amazon and Microsoft Ren learned that they need to take advantage of their own strengths.
By focusing on their experience with the cloud service market they can build differentiated features. However, Ren does point out that “Huawei can’t take the same path as Alibaba and Amazon.” Since Amazon and Alibaba have “endless money” from the US stock market they are able to do more than Huawei in certain scenarios.
Huawei’s cloud business is facing increased competition in the domestic market. According to analysts, these remarks come as a result of that increased competition. The strategy that Ren is discussing is a solution in response to the difficulties Huawei Is facing.
Huawei scaling back enterprise businesses allows the company to focus on its strengths
In order to break through some barriers facing its enterprise Ren is focusing on these certain points. “Huawei enterprise is still limited in size and faces barriers to develop on a bigger scale.” These points will help Huawei break through the bottleneck according to Jiang Junmu chief writer at C114.com.cn.
Huawei Cloud has more than 200 services. More than 1.5 million developers use these services and have attracted about 20,000 partners.
Now Ren and Huawei are focusing on how to seize the opportunity of digitalization of government and enterprises. They will also focus on how to achieve better development and achieve the world’s leading position.
Huawei specializes in hardware. This gives them an advantage compared to Alibaba Cloud, Tencent Cloud, and Amazon’s AWS which have hardware-and software fusion devices. These competitors have introduced more of these devices over time.
In order to better compete Ren says the company must strengthen its own software and application ecosystem. They must also not give the advantages its hardware brings to Huawei Cloud. Huawei Cloud does have its own advantages. Unfortunately, its development is relatively late.
Instead of competing with Alibaba and Amazon in the same arena, Huawei will focus its energies in other ways. By paving its own path the company can play to its strengths and create unique advantages.