Huawei has reportedly secured a multi-million dollar cloud services deal with the United Bank for Africa (UBA), one of Nigeria’s largest financial institutions.
This deal which provides UBA with 200 petabytes of storage cloud solutions, signals a shift in the Nigerian banking sector, where IBM has long dominated the cloud infrastructure landscape.
By choosing Huawei, UBA is embracing a shift towards alternative, more flexible cloud solutions, leveraging Huawei’s extensive expertise in cloud computing, artificial intelligence, and data analytics.
Tekedia Mini-MBA edition 15 (Sept 9 – Dec 7, 2024) has started registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Under the terms of the deal, Huawei will provide UBA with its cutting-edge cloud infrastructure, enabling the bank to enhance its digital banking services, streamline operations, and improve overall efficiency. With a presence across several African countries, UBA’s adoption of Huawei’s cloud technology is expected to enhance its capabilities in scaling operations and delivering seamless financial services to its expansive customer base.
Commenting on the deal, Zhang Li, Vice President of Huawei Cloud Africa, said,
“This is a milestone achievement for Huawei Cloud in Nigeria and Africa at large. UBA is a key player in the African banking industry, and we are excited to help them drive digital transformation. We believe this partnership will be a game-changer for the financial sector in Africa”.
This deal is seen as a strategic move by UBA to enhance its digital transformation efforts and improve operational efficiency, data storage, and customer experience. Huawei’s cloud solutions are known for their high-performance computing capabilities and robust cybersecurity features, which are critical for banks handling sensitive financial data.
For Huawei, this deal represents a significant win in its quest to expand its cloud services footprint in Africa, where it has been aggressively targeting the digital infrastructure needs of businesses. It also puts pressure on IBM, which has long held a dominant position in providing cloud infrastructure to Nigerian banks.
It is worth noting that financial institutions across Africa for have years selected hybrid cloud and AI capabilities from IBM to unlock digital innovation and continue their work to develop digital-first solutions, with the aim to broaden access to financial services on the continent.
However, Huawei’s entry into the market with a robust cloud offering signals a significant shift in the competitive landscape. Huawei’s ability to deliver high-performance cloud solutions at competitive pricing gives it an edge, especially as Nigerian banks look for more cost-effective ways to manage their data and enhance customer offerings.
This deal marks a major victory for Huawei’s cloud business in Africa, as the company continues its aggressive push to expand its presence on the continent. Huawei has been making inroads into African markets, particularly in the areas of telecommunications and cloud services, by offering highly scalable and cost-effective solutions.
Notably, Huawei’s partnership with UBA could signal the beginning of a larger trend where Nigerian banks increasingly adopt Chinese cloud technology providers. As cloud services become more integral to the banking industry, the need for cost-effective, secure, and efficient cloud platforms is growing.