Huaweiis closing its core cloud and artificial intelligence (AI) business group after only 14 months of operation, reported Caixin.
The group’s activities will be split into two units, Huawei announced in a Friday internal memo. Its server and storage hardware products activities will be taken over by Huawei’s internet products and solutions department, renamed “ICT product solutions” and made responsible for the tech giant’s product R&D.
The internal changes reflect Huawei’s struggle to transform from a hardware supplier to a services provider. It is built around a few core business segments: the carrier network business group, enterprise business group and consumer business group, reported Caixin.
Huawei Cloud became China’s second-largest cloud services provider in the fourth quarter of last year, growing its Chinese market share to 17.4%, according to datafrom research firm Canalys. This marked a sharp contrast to the fourth quarter of 2019, when Huawei Cloud was out of the top three.