Huawei is seeking to expand into the IT and cloud computing sectors through a joint engineering agreement with Intel, in a bid to stem falling profits from its telecom equipment business.
The pair has agreed to develop server, storage, data center and cloud computing products. The firms will also share market development efforts, synchronize future strategies, and shorten product development cycles, as part of a memorandum of understanding signed this week.
“The key advantage for both companies is the ability to bring new innovative product and usage models to market,” Ian Yang, Intel corporate vice president and China president says.
Zheng Yelai, president of Huawei’s IT product line, says the deal builds on a decade of collaboration with Intel, by enabling the firms to “innovate around customer demand – providing more efficient, more valuable, ICT solutions to our customers."