At the Huawei Analyst Summit (HAS) 2024 event, held in Shenzhen, China, Huawei emphasised its strategy of focusing on high-growth areas: ICT infrastructure, smart devices, Huawei Cloud, Digital Power, Intelligent Automotive Solutions, Laboratories, and HiSilicon (its semiconductor subsidiary).

Huawei’s goal is to create, with the help of an ecosystem of partners, a unified developer platform based on Huawei Cloud, deployed alongside the company’s open-source HarmonyOS, its Ascend semiconductor architecture, Pangu models, and other proprietary technologies.

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Huawei focus on sustainability

One of the points emphasised during the keynote was that the dramatic growth in computing power required to run digital transformation initiatives including GenAI applications has resulted in increased demand for data center capacity, as well as innovative semiconductor technologies.

The company is focusing on sustainability, a major drive in fast-growing regions such as the Middle East and Africa, where it is looking to extend its reach. It is also actively seeking greater recognition in the sustainability area, where it has released new offerings for the data center, including a Data Center Facility Integration Service solution based on liquid cooling to help customers increase the utilisation rate for IT systems.

This solution is targeting enterprises whose objective is to decrease the ratio of the power distribution room to IT system space. This should not only help customers save money in energy but also facilitate the achievement of their carbon goals. The ultimate objective is to reduce PUE (Power Usage Effectiveness), although increasingly, the overall industry is looking for novel, alternative ways to measure energy consumption other than the traditional PUE factor. Huawei also announced high-density integrated power modules that, according to the company, can help customers save up to 40% in physical footprint.

Huawei Cloud

Huawei Cloud continues to be a major focus area. The company’s cloud business rests on the Huawei Cloud Stack, an on-premises solution to help customers meet industrial hybrid cloud requirements with strict data residency, resiliency, and latency needs such as in government, banking, financial services, insurance, and manufacturing.

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Although its domestic market remains overwhelmingly important, Huawei is growing its market share of the IaaS (Infrastructure as a Service) marketplace globally and currently has around 5,500 customers outside China. The Huawei Cloud Stack offers over 240 varied services and is, according to the vendor, the top contributor to the open-source Linux kernel worldwide.

The company launched new cloud regions such as Türkiye and Saudi Arabia in 2023, following on from Ireland and Indonesia in 2022, amounting to a total of 30 zones worldwide. Huawei’s proactive efforts to grow its partner ecosystem have been instrumental in driving growth outside China. The company has set itself the goal of reaching the milestone of 45,000 partners by year-end, an achievable target given that it already hovers around the 43,000 mark. In addition, the company has an ecosystem of more than five million developers, and more than 10,000 applications have been released on KooGallery (Huawei Cloud’s marketplace).

AI technologies

During the event, the company featured new use cases driven by its large language model (LLM) suite, Pangu, in a host of vertical industries including finance, healthcare, manufacturing, and telecoms.

Alongside Pangu, the company offers the Celia assistant, to capture the broader opportunity from companies across many sectors adopting AI. Huawei’s foray into AI is not limited to its traditional core expertise in the communications industry. Pangu has been trained for an array of scenarios, from forecasting the weather to industry-specific applications in finance, mining, manufacturing, or telecommunications.

Huawei is expected to use them to enhance its own product and service offerings, and this means that Huawei clients will be able to leverage them to implement business process digitalization initiatives and even product innovation. GlobalData forecasts the generative AI market opportunity to grow 80% annually until 2027 to reach US$33bn.

Conclusion

HAS 2024 highlighted Huawei’s drive towards AI and its ambitious plan to leverage its partner ecosystem to expand outside China. Although China represents the bulk of Huawei’s market, the company is actively pursuing the international market opportunity where it already has a sizeable amount of clients particularly in data center infrastructure and cloud, across the EMEA and Latin America regions.

The company is well known for aggressively investing in R&D, having allocated $22.73bn, almost a quarter of its annual revenue, in 2023. Going forward, Huawei should continue trying to grow its share of big-margin areas including analytics and IoT.