Huawei Technologies Co. is one of the worlds “top three makers of telecom networking gear and smartphones”, and now it is entering into the data-storage market against competitors like Hewlett Packard Enterprise Co., Dell Inc. and Cisco Systems. A data center is a facility used to house computer and storage systems. The article, “ Huawei’s Cloud-Computing Plans Aim Sky High” states that essentially Huawei is building a cloud data center infrastructure for transporting operators into storage clouds.
Huawei believes that it will be a huge competitor in the cloud computing market as it plans to spend upwards of $1 billion budget for equipment and operating systems for data centers. However, I believe that there is a slim chance that Huawei will become a supplier for huge companies such as Amazon, Facebook, and Google, because “large corporations build their own data centers that offer cloud services and enable business and consumers to use these resources.” Though cloud storage platforms are in high demand right now it will be fairly difficult for Huawei to enter the niche market. As a user of a cloud storage platform I would definitely prefer to use a service provided from providers like Amazon, rather than using a whole new service, that is solely used for cloud storage. Furthermore, most of the information stored in cloud storage is sensitive, personal information and users prefer to use their own systems for security purposes.
Additionally, it will be fairly difficult for Huawei, a Chinese company, to enter the American market, as the American government believes it poses security risks to the U.S. Though in the short term Huawei will be able to make a profit on their data storage platform in countries in Europe and Asia, I feel that eventually Huawei’s will only be successful and a huge competitor if they migrate into the American market. The main advantage that Huawei has is already a major supplier of data-center equipment in China, which other competitors can not and provides 60% of it services outside of China. As of right now America is a major tech hub, and for Huawei to be successful in the future they will have to be able to provide data storage for American companies as well.
On the other hand, the fact that employment and development in data centers has increased tremendously in the past four years, targeting data storage is definitely the best growth opportunity for Huawei. I believe that in the next few years it will be imperative that Huawei works on creating relationships and clientele with companies who already work with Western data storage suppliers. In the long term however, Huawei should seek to break into the American markets as well, as data storage become more and more essential as technology develops.