Intel and Huawei Technology have come together to cooperate strategically on cloud computing, as per an announcement made Wednesday. By partnering with a Chinese firm, Intel plans to retain access to one of the biggest markets in the world.
Intel and Huawei together again
Intel and Huawei will work together on new server, data center, software and cyber-security to offer telecom carriers cloud computing services across the world, according to Huawei, which is taking its network overseas. In 2012, Intel and Huawei worked together to form a server and cloud product team, and last year, the duo cooperated on data storage. Apart from Intel, Huawei entered into a deal with Baidu.com in mobile internet and indoor location services.
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Entering into a partnership with Chinese companies and adopting Chinese partners’ branding help foreign firms to make their products appeal even more to local buyers and authorities in the world’s second largest economy. Apart from Intel, other U.S. firms adopting Chinese partnerships are IBM, Dell, Cisco, Hewlett-Packard and Juniper Networks. Other companies that have invested in China are Microsoft, Amazon and Alibaba.
Separately, Intel recently joined hands with Ericsson to offer network operator customers data-centers, thus making them more competitive against big cloud-based firms such Facebook, Google, Amazon, etc.
Chinese cloud computing market offers huge potential
In China, the public cloud computing market totaled $717 million in 2014, an increase of 46.7% annually. The annual growth rate is expected to be an average of 33% until 2018, according to U.S.-based International Data Corp. Also Chinese Premier Li Leqiang stated in a recent report that the cloud computing industry is a focus area for China, and the government will support its development. Cloud computing is expected to create 40,000 jobs in China by this year.
For quite some time, the Chinese government has promoted the use of more of Chinese-made and less foreign-made technology to develop domestic firms. Also the move was a response to revelations by former U.S. National Security Agency contractor Edward Snowden about U.S. cyber-surveillance. Such policies in China have been a constant factor of tussle in foreign relations, especially with the U.S.