Information & Communication Technologies

Huawei shares digital strategy and future plans at HAS 2017

by Haritha Ramachandran 11 May 2017
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Frost & Sullivan has attended Huawei’s 2017 Huawei Analyst Summit (HAS 2017) in Shenzhen, where Huawei discussed its performance results and future strategy. One of the key announcements during the summit was the launch of its first public cloud service suite called ServiceStage.

Eric Xu, Huawei's Rotating CEO, opened the summit with an in-depth overview of the company’s performance in 2016. Huawei’s overall revenue reached RMB 522 billion (USD 75 billion), increase of +32% YoY. However, despite the revenue growth its operating profit margin dropped from 12% in 2015 to 9% in 2016. Geographically, China contributed to 45% of Huawei’s total revenue in 2016, which indicated an increase from 42% in 2015.

The operator business held its key share of Huawei’s 2016 revenue (56%). The consumer BU grew at +44% YoY and total posted revenue of RMB 180 billion, which resulted in increased contribution from 32% in 2015 to 34% in 2016. Huawei’s global smartphone shipment reached 140 million in 2016, which indicated an increase of +30% YoY.

Earlier in March 2017, Huawei announced setup of the Cloud BU with 2000 staff and launched 54 full-stack cloud services falling into ten categories. "Cloud technology is becoming the new growth engine as digital transformations accelerate. Huawei has continued to step up its R&D, one result culminating in the cloud service offering. Huawei has become the preferred partner for many of the world's top customers and will continue to provide high-quality cloud services with our partners as we persist in building a healthy ecology in the sector”, said Zheng Yelai, President, Cloud BU and IT Product Line during HAS 2017.

All things considered, Huawei’s cloud ambitions for 2017 seem both broader and deeper than most, if not all of its competitors. Cloud service will become a crucial part of infrastructure to support digital transformation in the Cloud and Huawei is going “all in” on it. 

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