Huawei Besieged on New European Front After U.S. Targets Cloud, , on October 15, 2020 at 1:59 am

By ILP
On 10/15/2020
In Financial News
Tags:

(Bloomberg) — Huawei Technologies Co., already getting squeezed out of Europe’s vast market for the next generation of telecom equipment, is under siege in another fast-growing business: cloud computing.U.S. officials have been lobbying European lawmakers and industry leaders to use Western companies — while shunning Huawei — to build data centers and offer infrastructure to handle the growing tide of information.As part of a European tour last week, U.S. Under Secretary Keith Krach met executives including Deutsche Telekom AG CEO Timotheus Hoettges and Meinrad Spenger, the head of Spanish telecom carrier MasMovil, to urge them to ditch Chinese vendors of cloud infrastructure on data-security concerns.“Look at this as an extension of that 5G,” Krach said. “Clouds are really important, whether it’s in the service cloud or in data centers themselves. This is a big deal.”Pressure from Washington affects one of Huawei’s fastest-growing businesses. China’s largest technology corporation by sales has in past years accumulated an impressive roster of clients, including Deutsche Telekom, France’s Orange SA and Spain’s Telefonica SA. It’s now seeking to expand its reach to customers such as oil companies, power grid operators and logistics providers.While Alibaba Group Holding Ltd. operates a larger cloud business and WeChat-operator Tencent Holdings Ltd. isn’t far behind, Huawei is more vulnerable given the Trump administration has managed to convince some governments in the region to exclude its 5G networking gear. Europe’s cloud infrastructure is a $12.4 billion business that grew 33% this year from 2019, according to market researcher IDC. U.S. players dominate, led by Amazon.com Inc.’s AWS and followed by Microsoft Corp., IBM, Google and Oracle Corp.“Chinese players like Alibaba and Tencent are not making huge inroads into the European market,” according to IDC’s Carla Arend.A spokesman for Huawei declined to comment on its European cloud business.Similar to European telecom firms slowing turning away from Huawei for their 5G infrastructure, U.S. pressure is already working in the cloud. Orange CEO Stephane Richard told analysts in July that the company’s cloud built on a Huawei infrastructure was “likely no longer relevant.”“Clearly today, the Huawei Cloud infrastructure is not necessarily the one we’re going to be promoting in Europe,” he said. Orange’s Huawei-built cloud is currently used by the European Space Agency and car-marker PSA. Just days before Richard’s call with analysts, Orange signed a cloud deal with Google.Deutsche Telekom declined to comment on its CEO’s meeting with Krach and its cloud-business plans. The company, whose biggest sales come from its T-Mobile unit in the U.S., has cloud partnerships with Cisco, Microsoft, OVH and Amazon’s AWS. It also has an offer based on Huawei infrastructure called “Open Telekom Cloud” for small and medium-sized companies.While Huawei is struggling, U.S. companies are thriving. Nokia Oyj on Wednesday signed a five-year deal to move its IT infrastructure onto Alphabet Inc.’s Google Cloud. The U.S. provider also recently won a multiyear deal to store Renault SA’s manufacturing data, marking the U.S. tech company’s first major industrial cloud deal in France.“Huawei is losing market share in Europe,” said Jim Lewis, Director of Technology Policy Program at the Center for Strategic and International Studies in Washington, D.C. “I think its brand has been damaged. Their handset sales continue to do well, but in infrastructure they are being squeezed out of the developed world.”U.S. sanctions have already jeopardized Huawei’s supply chain. A U.S. ban in chip sales to Huawei kicked in Sept. 15, disrupting its wireless, handset and cloud offerings. In 5G, the U.K. has imposed a full ban, while France has devised rules making it riskier for operators to use Huawei equipment, without banning it outright.Read More: Trump Is Still Trying to Pressure Merkel Into Banning HuaweiTelefonica, which retracted plans to use mainly Huawei for its 5G, sells a cloud offer with the Shenzen company in Spain, Brazil, Argentina and Chile. It also has partnerships with Google, SAP and Microsoft. Krach cited Telefonica as one of the 50 telecom operators committed to the U.S.’s “clean network” plan.Huawei is far from defeated in Europe. On a rainy day last week, it opened an 8,000-square foot (743 square meters) research center in an upscale Paris neighborhood. Local telecom champion Orange said it will selectively keep parts of Huawei’s infrastructure in its offerings.But for now, the U.S. is maintaining pressure on its European counterparts.“All these companies that have cloud businesses and data centers that use Huawei, they understand that in terms of 5G, sophisticated smartphones and their servers, they are going to be out of chips,” Krach said after his eight-country European tour.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.,

Huawei Besieged on New European Front After U.S. Targets Cloud(Bloomberg) — Huawei Technologies Co., already getting squeezed out of Europe’s vast market for the next generation of telecom equipment, is under siege in another fast-growing business: cloud computing.U.S. officials have been lobbying European lawmakers and industry leaders to use Western companies — while shunning Huawei — to build data centers and offer infrastructure to handle the growing tide of information.As part of a European tour last week, U.S. Under Secretary Keith Krach met executives including Deutsche Telekom AG CEO Timotheus Hoettges and Meinrad Spenger, the head of Spanish telecom carrier MasMovil, to urge them to ditch Chinese vendors of cloud infrastructure on data-security concerns.“Look at this as an extension of that 5G,” Krach said. “Clouds are really important, whether it’s in the service cloud or in data centers themselves. This is a big deal.”Pressure from Washington affects one of Huawei’s fastest-growing businesses. China’s largest technology corporation by sales has in past years accumulated an impressive roster of clients, including Deutsche Telekom, France’s Orange SA and Spain’s Telefonica SA. It’s now seeking to expand its reach to customers such as oil companies, power grid operators and logistics providers.While Alibaba Group Holding Ltd. operates a larger cloud business and WeChat-operator Tencent Holdings Ltd. isn’t far behind, Huawei is more vulnerable given the Trump administration has managed to convince some governments in the region to exclude its 5G networking gear. Europe’s cloud infrastructure is a $12.4 billion business that grew 33% this year from 2019, according to market researcher IDC. U.S. players dominate, led by Amazon.com Inc.’s AWS and followed by Microsoft Corp., IBM, Google and Oracle Corp.“Chinese players like Alibaba and Tencent are not making huge inroads into the European market,” according to IDC’s Carla Arend.A spokesman for Huawei declined to comment on its European cloud business.Similar to European telecom firms slowing turning away from Huawei for their 5G infrastructure, U.S. pressure is already working in the cloud. Orange CEO Stephane Richard told analysts in July that the company’s cloud built on a Huawei infrastructure was “likely no longer relevant.”“Clearly today, the Huawei Cloud infrastructure is not necessarily the one we’re going to be promoting in Europe,” he said. Orange’s Huawei-built cloud is currently used by the European Space Agency and car-marker PSA. Just days before Richard’s call with analysts, Orange signed a cloud deal with Google.Deutsche Telekom declined to comment on its CEO’s meeting with Krach and its cloud-business plans. The company, whose biggest sales come from its T-Mobile unit in the U.S., has cloud partnerships with Cisco, Microsoft, OVH and Amazon’s AWS. It also has an offer based on Huawei infrastructure called “Open Telekom Cloud” for small and medium-sized companies.While Huawei is struggling, U.S. companies are thriving. Nokia Oyj on Wednesday signed a five-year deal to move its IT infrastructure onto Alphabet Inc.’s Google Cloud. The U.S. provider also recently won a multiyear deal to store Renault SA’s manufacturing data, marking the U.S. tech company’s first major industrial cloud deal in France.“Huawei is losing market share in Europe,” said Jim Lewis, Director of Technology Policy Program at the Center for Strategic and International Studies in Washington, D.C. “I think its brand has been damaged. Their handset sales continue to do well, but in infrastructure they are being squeezed out of the developed world.”U.S. sanctions have already jeopardized Huawei’s supply chain. A U.S. ban in chip sales to Huawei kicked in Sept. 15, disrupting its wireless, handset and cloud offerings. In 5G, the U.K. has imposed a full ban, while France has devised rules making it riskier for operators to use Huawei equipment, without banning it outright.Read More: Trump Is Still Trying to Pressure Merkel Into Banning HuaweiTelefonica, which retracted plans to use mainly Huawei for its 5G, sells a cloud offer with the Shenzen company in Spain, Brazil, Argentina and Chile. It also has partnerships with Google, SAP and Microsoft. Krach cited Telefonica as one of the 50 telecom operators committed to the U.S.’s “clean network” plan.Huawei is far from defeated in Europe. On a rainy day last week, it opened an 8,000-square foot (743 square meters) research center in an upscale Paris neighborhood. Local telecom champion Orange said it will selectively keep parts of Huawei’s infrastructure in its offerings.But for now, the U.S. is maintaining pressure on its European counterparts.“All these companies that have cloud businesses and data centers that use Huawei, they understand that in terms of 5G, sophisticated smartphones and their servers, they are going to be out of chips,” Krach said after his eight-country European tour.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

,

Contact Us

Please use our Instant Quote form to see if you're pre-qualified for a non-recourse stock loan, or if you have any questions or feedback, please email, call or chat with us.

deals@internationalliquiditypartners.com

+44 20 3994 1588

Headquarters: Hunkins Waterfront Plaza, Charlestown, Nevis

Open 24 hours a day / 7 days a week / 365 days a year

 

 

 

Frequently Asked Questions

What Is Securities-Based Lending?
Securities-based lending, or a stock loan, is the practice of using market investments such as stocks, ETF’s, warrants, bonds, or real estate investment trusts as collateral for a loan.
How much money can I get for my securities?
Borrow up to 80% of the value of your pledged investments giving you the capital you need to expand your business, purchase real estate, or tackle a costly project.
What happens if my securities lose value?
With a non-recourse stock loan, you can walk away from your securities at any time and keep the loan money with no negative credit consequences even if the investments lose value.
Is my information safe with ILP?
We pride ourselves on outstanding service and make client confidentiality our top priority. You can always be absolutely certain your information is safe with us.
How long does it take for the disbursement of funds?
Most of the transactions we process take less than 7 days from application to the disbursement of funds giving you cash quickly when you need it most.
What credit score do I need to qualify?
There are no credit checks or personal guarantees necessary with our services. Your pledged securities are the only collateral required for the loan you receive.

Instant Quote

Please fill out your information to see if you are pre-qualified.

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

International Liquidity Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

International Liquidity Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with International Liquidity Partners, LLC’s internal lending policies. International Liquidity Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Nevis Office

Main Street
Hunkins Waterfront Plaza
Charlestown, Nevis

New York Office

Coming Soon!

Follow Us

Market Coverage