Microsoft and China-based Huawei have signed a memorandum of understanding for an expanded cloud computing partnership. Under the agreement, Huawei will host more of Microsoft’s enterprise applications in its cloud environment. “The fourth industrial revolution, driven by technology innovation, is creating opportunities for customers to achieve more across nearly every industry,” said Alain Crozier, CEO of Microsoft China. “As a global leader in enterprise IT, Huawei is a strategic partner for Microsoft in the mission to empower organizations as they transform.”
Industry observers say the partnership could give Microsoft a bigger foothold in the large Chinese market. However, they caution that the memo is an early step in the partnership process and Microsoft still faces a lot of uncertainty.