eTail Asia 2021

18 - 20 May, 2021

Online (SGT)

How Huawei is Taking on Amazon and Alibaba with Its B2B Communications Services


Cloud-based services are continuing to replace legacy IT systems during the digital transformation with some industry leaders predicting that 85% of enterprise applications will be run on cloud platforms by 2025. HUAWEI is answering this call by creating cloud and network synergy for its own B2B services.

HUAWEI was founded by Ren Zhengfei in Shenzhen, China, in 1987. The company initially operated on a business model of reverse engineering foreign tech for the domestic market. However, the company came to international attention in 2003 when it established its own phone handset department and, in 2011, debuted its own cloud service and the world’s first cloud enabled smartphone – HUAWEI Vision. In 2015, HUAWEI announced the Nexus 6P, created in collaboration with tech giants, Google.

Today HUAWEI is one of the largest tech firms in the world and employs 180,000 people. The Shenzhen-based company has revenues of $78,511 million and holds the #83 spot on the Fortune 500.

The Challenges of the Cloud

As local area networks fall beneath the tide of inter-departmental cloud connections, the need for more and varied connections becomes greater. For example, banks will have a greater focus on security and high-quality private lines, whereas small business are likely to prioritize cost effectiveness.

Adding to this will be the proliferation of internet of things (IoT) devices. As connected devices become more and more ubiquitous, there will need to be a sympathetic increase in the number of connections available for them, as well as for more traditional connection applications.

Thirdly, there will be an increase in the need for appropriate and reliable bandwidth, latency, and security.

These demands are presenting great opportunities to telecommunications providers offering services to B2B customers. However, there are a couple of big players already in the game, which could offer serious challenges.

Amazon Web Services leverages the power of the world’s largest ecommerce company to offer a plethora of powerful enterprise grade products and services. While it maybe lacks specific line services and communications products, Amazon works with operators and IXP providers to bridge these gaps.

A little closer to home for HUAWEI is Chinese technology giant, Alibaba, which recently announced at Mobile World Congress 2018 its intention to spend the next three years building itself into the world’s largest cloud communications service provider, beginning with the recent launch of its cloud powered enterprising network services.

"We believe we need to service local clients leveraging our computers on the AI and big data," said General Manager of Alibaba Cloud Europe, Yeming Wang. “The European cloud business is still like a baby, but we’re excited about the prospects in the market as more companies look to digitize. Today, we are talking a lot with local clients about digital transformation including retail, logistics, finance. All are talking about digital transformation."

Cloud-Network Synergy

To meet this challenge, HUAWEI has been redeveloping its B2B strategy to make sure it differentiates itself from the competition. The new strategy is based around three key goals.

  • Migrating existing communications capabilities (DCI, private line, CDN, enterprise network management, enterprise communications, etc.) to the cloud to provide faster and more flexible services.
  • Building innovative services such as IoT on cloud platforms to provide a broader range of service categories.
  • Leveraging cloud platform and network capabilities to develop ecosystem partners, focusing on popular industry scenarios (distance education, industry video, enterprise office, etc.) to provide flexible solutions that help government and enterprise customers implement their own digital transformation strategies.

To meet these goals, HUAWEI is offing four distinct services designed to help its B2B customers build their cloud-based solutions.

Strategic planning will help operators to establish strategic positioning, identify target customers, and design reasonable bespoke packages.

Solution implementation provides a variety of cloud network solutions such as agile private line, CloudCampus, SD-WAN, cloud services, and IoT.

Operations and maintenance sorts and integrates telecommunication operations processes into a cloud-based operations and management system and processes.

Ecosystem development extends the global ecosystem chain based on HUAWEI’s experience in cloud service provision. Ecosystem partners can help operators to expand their upper-layer services.

By bringing cloud-services and networks together and helping companies make sure they are working in sync with one another, they can become more agile and effective communicators. By setting up an organization in this way, they ensure that future digital transformation demands can be met, and new services and/or infrastructure can be developed and implemented on the fly.

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