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In 2017, Huawei Cloud released its performance data and confirmed that the claim of generating $500 million in profit was inaccurate. This marked a significant step in Huawei Cloud's digital transformation, signaling its entry into the Cloud 2.0 era. The shift is expected to drive advancements in key technologies such as artificial intelligence (AI), positioning Huawei Cloud as a major player in the evolving cloud landscape.
At the start of 2018, Zheng Yelai, President of Huawei Cloud Business Unit, emphasized the company’s core philosophy: "Why do we talk about the 'three no's' when it comes to cloud computing? Because it’s all about solving security issues—people are at the center." Many had initially doubted Huawei’s move into the cloud market, even some internal staff at Huawei's canteens thought it was unfeasible. However, after Huawei Cloud revealed its 2017 sales figures, the skepticism began to fade.
The image below highlights the transition of Huawei Cloud into the 2.0 era, with digital transformation driving innovation in AI development.
Zheng Yelai explained that business-driven enterprises are increasingly turning to new technologies and business models for transformation, with cloud computing becoming a crucial enabler for government and enterprise customers to restructure their IT infrastructure. As cloud computing moves into the Cloud 2.0 phase, traditional large and medium-sized enterprises are becoming the backbone of the industry. Companies like Dongfeng Honda, Konka Group, and Geely Automobile have chosen Huawei Cloud to support their digital transformations.
Regarding Huawei Cloud's strategic foundation, Zheng emphasized that technology is the cornerstone of ensuring the highest level of security. The company adheres strictly to the "three no" principles: not developing applications, not accessing customer data, and not making equity investments. Zheng stated, "Last year, we introduced the 'three no' commitment, and many customers recognized it. Government and enterprise clients need stable, reliable, safe, and credible cloud service providers. The 'three no' approach is central to building a healthy ecosystem, and Huawei Cloud aims for win-win cooperation with partners."
When asked about Huawei Cloud’s 2018 revenue goals, Zheng did not provide a direct answer, saying he wasn't good at math and didn’t focus on numerical targets. Instead, he highlighted the importance of technological innovation. "Revenue isn’t the main goal. What matters is that technology brings real changes to the industry. Only through innovation can we reshape the future," he said.
Artificial intelligence presents new opportunities for cloud services. To truly harness AI, two key challenges must be addressed: first, enabling enterprise applications, and second, maximizing cost efficiency. Huawei has developed AI platforms that help businesses tackle internal issues such as supply chain management, global technical services, and transportation logistics. By integrating software and hardware innovations, Huawei aims to make AI more cost-effective and accessible.
The growth of the Internet of Vehicles (IoV) also opens up new possibilities for Huawei Cloud. When discussing partnerships with car companies, Zheng noted that many chose Huawei because it doesn’t directly compete with them. He pointed out that the core of IoV lies in connectivity, where Huawei has strong expertise in communications. Additionally, Huawei’s long-standing experience in chip development further strengthens its position in the market.
In response to the idea that the public cloud market is saturated, Zheng argued that as long as industries are still evolving, the journey for cloud service providers has just begun. He observed that many internet companies are now looking for a second cloud provider, reinforcing the belief that cloud computing is the future.
September 28, 2025