Huawei now faces US pressure on cloud computing, Companies & Markets

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BRUSSELS • Huawei Technologies, already getting squeezed out of Europe’s vast market for the next generation of telecom equipment, is under siege in another fast-growing business: cloud computing.
United States officials have been lobbying European lawmakers and industry leaders to use Western companies – while shunning Huawei – to build data centres and offer infrastructure to handle the growing tide of information.
As part of a European tour last week, US Under-secretary of State for Economic Growth, Energy, and the Environment Keith Krach met executives including Deutsche Telekom chief executive Timotheus Hoettges and head of Spanish telecom carrier MasMovil Meinrad Spenger to urge them to ditch Chinese vendors of cloud infrastructure on data security concerns.

“Look at this as an extension of that 5G,” Mr Krach said. “Clouds are really important, whether it’s in the service cloud or in data centres themselves. This is a big deal.”
Pressure from Washington affects one of Huawei’s fastest-growing businesses. China’s largest technology corporation by sales has in past years accumulated an impressive roster of clients, including Deutsche Telekom, France’s Orange SA and Spain’s Telefonica. It is now seeking to expand its reach to customers such as oil companies, power grid operators and logistics providers.

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