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Huawei said Tuesday it will compete with amazon and alibaba as a global public cloud service provider, according to Reuters.
Last month, huawei released its 2016 earnings report, which showed profit growth at its slowest pace in nearly five years. The company said it would set up a special department that will recruit more than 2,000 people this year to expand in the cloud.
Zheng Yelai, President of the new department at huawei annual analysis of normal university said: "we used to focus on private cloud and do well. Now the goal is to strengthen our public cloud products."
Public cloud services involve sharing data infrastructure rather than building a dedicated infrastructure for a single customer. Gartner, a market-research firm, expects the global public cloud services market to grow from $247bn this year to $383 billion by 2020.
In smartphone sales growth is slowing, telecom infrastructure spending, which is mainly composed of hardware, huawei hopes to expand in the field of cloud computing, continue to develop based on the income of the software.
In mainland China, huawei cloud services in the public market's biggest rival is ali cloud, and the latest market participants is the dalian wanda group, was established in collaboration with IBM.
Mr. Cheng declined to say how huawei would win over alibaba in the public cloud service, which is also a key customer for huawei's IT infrastructure and services.
Xu zhijun, vice chairman and CEO of huawei, said huawei's global telecommunications customer network offers a unique advantage for the company.
"I believe we can use the advantages that we have accumulated over the years," he said. He cited huawei's partnership with European operators and a strong market share in developing countries.
"We will compete with amazon cloud services AWS and Microsoft cloud services Azure," he said. "I believe this is a trend we will see."
He also said huawei would not compete for market share by offering services at very low prices.
Last month, tencent received a cloud service contract with a price tag of just 0.01 yuan. Local media reports say competitors are complaining about unfair competition. But tencent told Reuters the case was a one-off.
"Our strategic focus will be on the transformation of our telecommunications partners into the cloud," Mr Xu said.
On Monday, China's ministry of industry and information technology released the three year action plan for the development of cloud computing (2017-2019). The division predicts that by 2019, China's domestic cloud computing industry will grow from 2015, 150 billion yuan to 430 billion yuan, and said that the field will appear "two or three leading companies in the world."
Huawei earlier said it expected revenues from its cloud computing business to reach 10 billion yuan by 2020.