Huawei’s cloud service down for half an hour, disrupting services for Guangdong customers

·2-min read

The cloud operations of Chinese tech giant Huawei Technologies Co crashed for 34 minutes on Monday morning, causing disruptions across a variety of services including a popular stock trading app.

Huawei Cloud said that there were “abnormalities” when accessing its public cloud network in Guangzhou, capital of southern Guangdong province, according to a short statement the firm posted on Chinese microblogging site Weibo at about noon on Monday.

The glitch has been fixed, but the company is still probing the cause, the statement said.

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The crash of Huawei’s cloud services caused extensive disruptions and triggered a wave of complaints. Among the clients severely affected was Tonghuashun, a stock trading and finance information app operated by Hithink Royal Flush Information Network.

Users of the Tonghuashun app flocked to Weibo on Monday morning to report that they were not able to use the trading function, making it one of the top trending topics on the social media platform.

Tonghuashun later said on its official Weibo account that its service has been restored.

Huawei Cloud’s crash comes amid heated competition between Chinese tech giants in the cloud computing field under the country’s drive for digital transformation of industries and business.

Cloud computing services enable companies to buy, sell, lease or distribute a range of software and other digital resources as an on-demand service over the internet, just like electricity from a power grid. These resources are managed inside data centres.

No 2 player Huawei accounted for an 18 per cent share of the US$27.4 billion mainland Chinese cloud market last year, just ahead of social media and gaming giant Tencent Holdings with a 16 per cent share, according to a March report by Canalys.

Huawei and Tencent lag behind the cloud unit of Alibaba Group Holding, which held a dominant lead with a 37 per cent revenue share last year. Alibaba owns the South China Morning Post.

Cloud computing is one of the major new directions Huawei is relying on to remake itself after its once-lucrative smartphone business was crippled by US trade sanctions.

A part of Huawei’s enterprise services segment, which reported 2 per cent revenue growth in 2021, the cloud computing unit saw growth of 30 per cent to reach 20.1 billion yuan (US$3 billion) in revenue.

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