Huawei to make foray into enterprise software, encroaching on Oracle’s core business

The rift between Chinese and US tech firms is widening.

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Huawei reportedly plans to unveil a new cloud database product next week, intruding on a sector traditionally dominated by Oracle, Microsoft, and SAP, according to The Information.

Huawei’s new cloud database business will focus on the domestic market, an unnamed executive from the company told The Information. Though it’s not immediately clear which companies might make up Huawei’s new enterprise product’s first customers, the Shenzhen-based firm does already entertain close ties with China’s big telcos, which are among the biggest spenders on enterprise software.

Huawei’s new cloud database business might increase its revenue but is set to deepen the rift between Chinese and American tech companies. The US government is pushing for a technology decoupling from China while Beijing, for its part, has long been encouraging local firms to reduce their dependency on foreign technology.

Larry Ellison, the CEO and founder of Oracle, has been vocal about his support for a tougher US government stance on Chinese companies.

Huawei, meanwhile, is currently the target of a US-led campaign which aims to exclude it from the global 5G market.