The Chinese telecommunications giant Huawei Technologies is closing its core business group Cloud and Artificial Intelligence after just 14 months. This reflects the company’s difficulty in moving from device manufacturer to service provider.

The group’s activities will be split into two units, Huawei announced in an internal memo dated April 2. Server and hardware storage operations will be handled by Huawei’s Internet Products and Solutions division, which will be responsible for product research and development.

Zhang Pingan was named president of the cloud business unit, replacing Richard Yu, who became president of the combined cloud and AI business group and cloud business unit in January.

The changes reflect Huawei’s struggle to evolve from a hardware provider to a service provider. The company focuses on a few core businesses: the Carrier Network Business Group, the Enterprise Business Group and the Consumer Business Group.

However, last week’s memo didn’t say who …


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