CORPORATE GOVERNANCE

Huawei Splits Cloud-AI Business Group

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Chinese vendor Huawei moved to separate its Cloud and AI business group into individual units just over a year after creating the division to drive cloud services.

A Huawei representative told Mobile World Live the restructuring is in process, noting no official announcement was made.

Caixin reported an internal memo revealed Huawei’s server and storage products unit will become part of the Internet Products and Solutions Department, which will be renamed ICT Product Solution and handle product R&D.

The news outlet didn’t mention how Huawei would realign the AI element.

Huawei formed the division in January 2020, combining its cloud services and AI units to create a fourth business group alongside the Carrier, Consumer and Enterprise groups.

Consumer business unit CEO Richard Yu was named head of the combined cloud and AI group in January.

In its 2020 earnings figures, Huawei only broke down revenue for the Consumer, Carrier and Enterprise groups: the Cloud and AI business group numbers were reportedly included in each of those

Canalys placed the unit as the second-largest cloud services provider in China during Q4 2020 with a 17.4 per cent market share, behind Alibaba on 40.3 per cent. Cloud infrastructure services spending in the country jumped 62 per cent year-on-year to US$5.8 billion.

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