The Value of Cloud Computing is Expanding

As companies transmit, store, and analyze larger quantities of data, cloud computing is extending into more corners of the business world. Private enterprises and the public sector are turning to the cloud to manage these growing data streams. This has led Huawei to expand its own cloud computing services.

It’s a natural evolution. We started with computing, storage, and network management, working mostly with telecoms operators. Now, we’re leveraging that experience and working with different industry verticals to supply private, public, and hybrid clouds in the many areas where cloud computing can create value.

For example, the media and entertainment industry is starting to appreciate the benefits of the cloud. Viewers today want a superb experience when streaming video and other content on a device. To help media outlets meet those expectations, Huawei created a converged cloud solution for Hunan TV, one of China’s leading broadcasters.

Because TV programs increasingly are produced and broadcast in high-definition (HD) format, video was consuming a huge amount of storage space in Hunan TV’s internal data center. Huawei’s solution enabled the station to store ultra-high-quality video in its own data center, while putting lower-resolution “work-in-progress” video into a public cloud. Moving the work-in-progress material to the public cloud freed up enough storage space that Hunan TV can now put 50% more HD video in its own data center. Another media outlet, Shenzhen TV, employed a Huawei solution to improve its resource use by 50%, shorten its average news program production time from two hours to 72 minutes, and reduce the amount of office space it needed to perform the same amount of work.

From support system to production system

IT has long been regarded as infrastructure that every business needs. But soon the cloud will transform IT from a mere support system into a production system that allows companies to create value and pursue new business models.

While cloud computing has already changed many consumer industries, it will soon expand to the industrial sector, integrating into the production process such technologies as Big Data, mobile broadband, and the Internet of Things. This will enable products and services to be produced at scale in a way that is flexible, customized, and innovative.

Harley-Davidson, the maker of iconic motorcycles, offers its customers the option of customizing their bikes to reflect their individual tastes. Each motorbike is made of more than 1,200 components, many of which can be personalized for fit, style, and performance. Clients can choose the engine, the tailpipes, the intake system, and the transmission; the height and style of the seat or handlebars; and, of course, the color and finish of the paint.

This is great for customers, because it opens the door to nearly unlimited combinations. But from a business standpoint, it was problematic for Harley. Producing a single customized bike required 21 days. The personalized, single-batch manufacturing that was so important to its customers was affecting the company’s productivity.

Using a cloud platform developed by SAP in conjunction with Huawei, the Harley-Davidson production center in Germany reduced the time needed to produce a customized bike from 21 days to just six hours. Customers can place an order in the morning, wait half a day, and drive their dream bikes home that same afternoon. This cloud solution has boosted manufacturing productivity at the plant by 25%, while keeping customers happy.

From business to public services

Cloud computing is expanding to the public sector as well. By integrating resources into government, transport, healthcare, and education, cloud computing fosters collaboration, allows resource-sharing, and eliminates information silos.

The city of Guangzhou in southern China needed a unified e-government platform to enhance cross-agency collaboration and improve user experience. Citizens seeking access to government services online had to spend significant time learning different systems because the city released information through a wide range of channels, including a portal, an online petition hall, the websites of different city agencies, and various social networking sites.

By moving to a unified platform that combined private and public cloud technology, Guangzhou greatly improved access to an array of vital public services, including education, healthcare, and land resource management. It also positioned the city to meet changing service needs in the future, while reducing IT costs by 40% and operation and maintenance expenses by 30%.

The era of cloud-based industry transformation has arrived, but much work remains to be done. Products, solutions, and services that involve the cloud are interdependent, so a sound ecosystem must be established for the industry to thrive.

We’d like to hear your thoughts on how this ecosystem might take shape, and what your organization is doing to leverage the benefits of cloud computing – while meeting the challenges of implementation.

You might also like to learn more about The Huawei Cloud Congress in Shanghai, September 18 and 19, 2015.