It has recently been reported that Yu Chengdong (also known as Yu Yudong), head of Huawei’s consumer business group, will serve as the head of Huawei’s cloud and computing business unit, which will be officially announced in February 2021.
At the same time, Huawei internally announced that Richard Yu AKA Yu Chengdong, the current CEO of Consumer BG, will be appointed as the new President of Cloud, and AI BG will serve as the head of the Cloud&AI BG administrative management team. On the other hand, Hou Jinlong, the current president of Cloud Computing BG, will serve as the chairman of Digital Energy.
So far, this is the rarest thing in Huawei’s history, and the three major businesses will now be managed by an official.
Now, what is the main purpose of Huawei making this decision? Let us discuss this issue in this article.
What is the latest status of Huawei Cloud?
Since 2017, Huawei has established a cloud computing BG, which is currently in a large but not strong state. It is reported that Huawei’s cloud computing BG includes three parts: cloud computing BU, computing product line (servers, etc.), and storage and machine vision product lines. But this is one of the businesses that Huawei will focus on.
However, the goal of Huawei executives to catch up with Alibaba Cloud within three years has already exceeded the time limit. Now, Huawei is expected to make new breakthroughs after cloud computing BG is handed over to Yu Chengdong.
Huawei’s definition of the cloud and computing BG organization is to be responsible for the competitiveness and commercial success of the Huawei cloud and computing industry, and to undertake R&D, labeling, ecology, technical sales, consulting, and integrated support services. The responsibility of the cloud and computing industry. Around Kunpeng, Shengteng, Huawei Cloud builds an ecosystem and becomes the foundation of the digital world.
Judging from the current situation of Huawei, the revenue of cloud computing and BG is still not very satisfactory. Since the establishment of the cloud business unit, Huawei has never announced the specific revenue of this business in the financial report, and only mentioned the growth of this business in the semi-annual report for the first half of 2020.
Although it is too early for Huawei to enter the game, it has achieved fruitful results through a series of measures. According to a report by the research institute Canalys, China’s cloud infrastructure services totaled US$4.3 billion in the second quarter of 2020, a year-on-year increase of 70%.
Huawei Cloud ranked second with a market share of 15.5%, second only to Alibaba Cloud, with a year-on-year increase of 259.6%. In the fast-growing cloud business field, Huawei Cloud is driving at super high speeds in recent years
Ren Zhengfei pointed out that Huawei’s corporate business stated that it must focus on strategic priorities, continue to reduce, downsize the corporate business as a frontline, and carefully figure out how to build a combat model. “We must do something, not do something, not everything.”
Under various backgrounds, it is not difficult to see that Huawei is ready to make adjustments on Huawei Cloud in order to seek greater breakthroughs, and Yu Chengdong’s personnel adjustments are obviously to achieve greater ambitions and better develop Huawei Cloud.
Huawei CEO Ren Zhengfei said that after the miracle of consumer BG, whether Yu Chengdong can continue to replicate this success in cloud computing and computer BG will face no small internal and external tests.
However, Richard may still retain command of the consumer business unit, but formal approval on this matter has not yet arrived.
The purpose is after personnel adjustment?
Huawei insiders said that the purpose of Huawei’s personnel adjustment is to strengthen the collaboration between mobile phones and cloud computing, further improve internal operating efficiency, further integrate core capabilities, strengthen Internet business layout, and promote the overall development of the ecosystem.
Huawei Cloud has previously supported consumer BG services at the business level and provided cloud services for Huawei mobile phone users, but the organizational structure is two groups of teams. Now, Yu Chengdong is responsible for cloud and mobile phones, which in theory can better promote cloud integration.
In this regard, industry insiders also said that Huawei’s board and card games are constantly being adjusted. This time the change is bolder and the purpose is more obvious. It is to continue to eliminate barriers, integrate and create new growth poles, coordinate the development of the cloud, and finally end. Occupy a new consumption scene. ”
It is worth noting that Yu Chengdong is also responsible for the automotive BU business. The car is considered to be the most imaginative smart terminal after smart phones. By combining these services, Huawei can discover that “cloud services” are the basis for carrying HMS, HarmonyOS, consumer cloud services and smart car cloud services, thus forming a closed loop of ecology + business.
Some media have also analyzed from a series of Huawei’s layouts that Huawei Hongmeng focuses on the Internet of Everything, which is a major achievement of the Internet of Things. The future direction of Huawei Cloud will support this strategic route and provide infrastructure for applications in the direction of the Internet of Everything. The problem lies in the cloud, and the decisive victory lies in the application ecosystem.
“In the future, with the development of 5G, the manufacturing industry will become intelligent, and the Internet of Things will require a lot of IT facilities. Obviously, new outlets have emerged. In the future, Alibaba Cloud is likely to lead the development of China’s Internet sector. , HUAWEI CLOUD will lead the two most powerful IT facilities required for manufacturing and AIoT.” Many industry insiders also have this judgment.
How far can Yu Chengdong lead Huawei Cloud?
As we all know, Yu Chengdong is a member of Huawei. Since joining Huawei in 1993, Yu Chengdong has served successively as President of the Wireless Product Line, President of the European Region, President of Strategy and Marketing, Chairman of the Terminal Company and CEO of Consumer BG. Under his leadership, Huawei’s wireless and terminal department has achieved higher results.
In particular, under the leadership of Yu Chengdong, Huawei’s consumer business has achieved rapid development and has become the largest revenue contributor among operator BG, enterprise BG, cloud and AI BG and consumer BG.
Despite the great pressure of the US ban in the past two years, Huawei’s consumer business still achieved satisfactory results. Huawei’s 2019 financial report shows that in 2019, consumer business revenue was 467.3 billion yuan, accounting for 54.4% of total revenue, a year-on-year increase of 34%, and smartphone shipments exceeded 240 million. In the first half of 2020, Huawei achieved sales revenue of 454 billion yuan and consumer business revenue of 255.8 billion yuan.
Under the leadership of Yu Chengdong, Huawei mobile phones surpassed many powerful opponents. In the second quarter of 2020, the global market share of Huawei mobile phones surpassed Samsung for the first time, ranking first in the global market for the first time. He also fulfilled his wish for many years.
This time, Yu Chengdong was appointed as the president of cloud computing business and BG, which will also strengthen the collaboration of BG’s internal business.
At the same time, Yu Chengdong’s experience in Huawei’s consumer business, especially in the construction of consumer cloud services and end-cloud collaboration functions, will help the development of Huawei’s cloud business, and will help maintain the smartphone business while maintaining It is raised to a new level.