(Yicai Global) Apr. 7 -- Local provincial governments in China are stepping up their efforts to increasingly adopt cloud computing, Big Data and Smart City construction, making them the focus of government services business, which also benefits telecom giants. In such a move, CEO of Huawei Technologies, Ren Zhengfei, met with a host of provincial government officials recently and signed contracts, reported the 21st Century Business Herald.
Ren met early this year with high-level local government officials from Sichuan, Shaanxi, Shanxi, Guangdong, Zhejiang and Hubei provinces, the report said, adding that he also held talks with officials from Guizhou and Jiangsu last year. As a result, Huawei has signed strategic framework cooperation agreements with the above-mentioned eight provinces. In partnership with China Mobile Henan, Huawei also won the bid for Henan province's "government services on cloud " project last month.
A government department official in charge of the cloud project in a central city of China told the paper that since Huawei has substantial experience in cloud computing area, it becomes inevitable choice as supplier. He added that Huawei has advantage in hardware, and the local government has good impression of the company which is capable of realizing such projects.
Huawei has formed a strategic cooperation with more than 30 cities in China, which constitutes a cloud services resources network covering the provinces across China, taking the lead in the government cloud services market, indicate Huawei's latest 2016 earnings report.
Local government tenders are the focus of competition for every player in the market. No matter whether it is the governments or enterprises that are making digital transformation, informatization is a national strategy, with IT systems becoming critical decision and core business systems of both corporates and governments, said Yang Ping, Huawei BG China vice-president, in a media interview.