Image source: visual China
Reporter Lu Keyan
On January 27, Huawei announced a major personnel appointment: Yu Chengdong, the current CEO of consumer BG, plans to appoint the president (Part-time) of cloud & AI BG, the director of cloud & AI BG administrative management team, the president (Part-time) of cloud Bu and the director of cloud Bu administrative management team. Hou Jinlong, the current president of cloud and computing BG, intends to appoint the chairman of digital energy this time.
This appointment can be interpreted as that Yu Chengdong began to take charge of Huawei’s two BGS, and his power expanded again; while Hou Jinlong changed from BG president to product line president, and his power narrowed.
It is worth mentioning that just two months ago, Huawei’s intelligent vehicle business and intelligent terminal business were integrated. The business jurisdiction was unified under the consumer business management committee, and Yu Chengdong was appointed as the director of IRB for intelligent terminal and intelligent vehicle parts. In other words, Yu Chengdong has the right to determine the resources required for the above business.
After the fate of Huawei’s mobile phone business has become a mystery, smart cars and cloud computing are regarded as the most likely growth points of the company in the future. Now, these two businesses are in the charge of Yu Chengdong, who is highly recognized, which further proves that Huawei attaches great importance to these two businesses.
Cloud and computing BG includes cloud, computing, data storage, machine vision and other business lines. At the beginning of 2020, Huawei made a round of organizational restructuring, in which cloud & AI (cloud and Computing) business was stripped from enterprise BG to Huawei’s fourth largest BG, keeping pace with the three pillar businesses of operators, enterprises and consumers.
In the financial data released in the past, Huawei did not mention the revenue of cloud and computing BG. A Huawei executive once said in an interview that Huawei is willing to leave sufficient room for the growth of the newly established BG.
A person familiar with the matter said that Huawei’s internal communication means that the purpose of this personnel adjustment is to strengthen the collaboration between mobile phone based “end” and cloud computing, integrate core capabilities, further improve internal operation efficiency and strengthen Internet business layout. In addition, Huawei also stressed “not selling mobile phone business”.
Earlier, foreign media reported that Huawei was discussing the possibility of selling its mobile phone business with a consortium led by an investment company supported by the Shanghai municipal government due to the shortage of chips. Huawei’s mobile phone may have the same fate as glory. According to another report, Huawei is considering selling not only its mobile phone business, but also a series of IOT products such as PCs and tablets in its consumer business.
As we all know, mobile phone is the core of Huawei’s consumer business, and also the key entrance of IOT products. Once Huawei’s mobile phones are sold, the value of other business lines will be greatly reduced. In the worst case, the mobile phone business is facing sale, and multiple product lines of the consumer business may be stripped together.
Huawei denied rumors of selling its mobile phone business, saying it had “no plans at all.”. However, there is a view that the appointment is to pave the way for the future business adjustment. Under the management of Yu Chengdong, cloud and computing may have more synergy with smart car business.
A former consumer business employee said that the rumor of the appointment has been around for nearly a year, which shows that Huawei has long had this intention. In his view, the chip problem has not been found a solution, the consumer business is not optimistic. “Bet cloud and computing BG may not be the optimal solution, but it is more growth than the operator business.”
A middle-level member of Huawei once told interface news that although the transfer of the highest power in the United States has been completed, Huawei does not think that the other party’s attitude towards Huawei will change. When the road ahead is unclear, Huawei must set aside a way back for itself.
IDC report shows that in the first quarter of 2020, Huawei’s public cloud revenue reached 1.85 billion yuan, and its domestic market share rose to the third, reaching 8.9%, with a year-on-year growth of 170%. Huawei is the fastest growing Chinese cloud manufacturer. In addition, Huawei servers account for 4.9% of the global market share, ranking fifth with a revenue of 7.2 billion yuan. The storage business ranked fourth in the global market, with a market share of 9.4% and a revenue of 4.1 billion yuan.
Overall, Huawei is a leading manufacturer, but it still lags behind Alibaba, Tencent and other manufacturers. However, there are not many players in the domestic cloud and computing market, and the growth rate is also very considerable. Huawei still has great room to break through.
Whether it’s tob or TOC business, Yu Chengdong has the experience of leading Huawei to the first place in the world, which is also the reason why Huawei has entrusted the heavy task to him. However, cloud and computing are a brand new market. Whether Huawei’s usual playing method can still work remains to be tested by time.
Image source: visual China