With the announcement that it is officially entering the field of cloud computing infrastructure, Huawei is looking to mount a strong challenge against Hewlett-Packard Enterprise, Cisco Systems and Dell, the current crop of leading global suppliers of cloud equipment.

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The Chinese giant is one of the top three big names in the world in the telecommunications and networking gear industry. Now, the Shenzhen-based company is looking to make a push into the cloud computing market.

With the current rise in global demand, Huawei Technologies expects to build a US$10-billion-a-year business in cloud computing infrastructure and services by 2020.

"We see huge and clear opportunities," Deputy Chairman Ken Hu Houkun of Huawei said at an event in Shanghai. "The new trend for traditional industries, such as manufacturing, health care and education, as well as the public sector, is to upgrade their operations by using cloud computing technologies and solutions."

Huawei has not been able to gain a foothold in the US because of governmental concerns that the company has put or might put a backdoor entry into their gear to "steal trade and government" secrets. It seems very unlikely that Huawei will become a supplier for companies like Amazon Inc., Facebook Inc., and Alphabet Inc. because they use their own data centers to offer the cloud services which enable businesses and consumers to access applications and also store the information at a remote place.

But Huawei has a good foothold in other places like Europe, Russia, and Africa and will be looking to expand there further. Some of Huawei's big name clients are Deutsche Telekom AG and Russia's central bank.