TECH NEWS — A development that is becoming more worrisome is the growing trend among banks to further outsource their hardware and data storage needs to China’s Huawei.
This is all in a bid to save on cost. With this development, Huawei is gradually making an inroad into the Nigerian banking sector and aiming to take a good chunk of the technology infrastructure market.
According to reports, the company recently clinched a deal with the United Bank of Africa (UBA), a tier-1 commercial bank with a market capitalisation of N803 billion, to provide a data storage solution following an increase in the cost to maintain the service of its previous provider.
According to the report, Huawei sold 200 petabytes of storage and cloud solutions to the United Bank of Africa in a deal within the region of $3 billion. The company has also cut deals with Fidelity Bank, First Bank, and Opay.
While UBA had in the past used IBM’s storage and VMWare for its virtualised technology components, the 2022 acquisition of VMWare by Broadcom brought about a significant change as VMWare subsequently switched to a subscription-based model, thereby causing a huge spike in licensing costs. This led to the bank’s using the company to look around for cheaper alternatives.
Now Huawei, and by extension, Chinese companies, have always been known for their bullish strategy to penetrate every market they set their eyes on, and that is what appears to be happening at the moment as the company’s clientele among Nigerian banks swells... businessday.ng
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