The value of Taiwan’s cloud computing services market is expected to reach NT$5.56 billion (US$172 million) this year, up 12.8 percent from last year, and to hit NT$6.21 billion next year, a market research institute said yesterday.
Infrastructure as a Service, which provides co-location and security operation center services, will occupy the bulk of the cloud computing market for this year, with a value of NT$5.07 billion, the Market Intelligence & Consulting Institute (MIC, 產業情報研究所) said.
Meanwhile, Software as a Service, which provides online software solutions such as Salesforce.com CRM and Cisco WebEx, will account for NT$487 million of the cloud computing market this year, MIC said.
Lin Hsin-heng (林信亨), an industry analyst at MIC, said that nearly 35 percent of small and medium-sized enterprises (SMEs) in Taiwan use cloud computing services.
Citing the results of an MIC survey that was conducted between November last year and January, Lin said most SMEs use cloud computing because of its flexibile deployment and low investment risks.
Lin said that companies with fewer information technology engineers tend to employ more cloud computing services.
Cloud computing is a Web-enabled software solution that uses the Internet as a platform for performing tasks on the computer and delivers a range of inter-operable applications. It allows clients who have no knowledge of or expertise in technology infrastructure to complete common business applications online that are accessed from a Web browser.
On Monday, the Industrial Technology Research Institute (ITRI), Taiwan’s leading technology research institute, said the government should help small industries with cloud computing to lower costs and promote their products to the world.
ITRI president Johnsee Lee (李鍾熙) said at a venture capital forum that with the trend toward innovative technology growing stronger after the global financial crisis, low-priced products, Internet services and other innovative technologies have become the focus of markets.
Lee said that developing such innovative technologies requires government help, citing Taiwan’s solar energy industry as a good example of achieving a sizable application environment and a complete supply chain with government support.
Upbeat about the business opportunities arising from innovative technology, Lee said low-priced innovative products, such as netbooks, mobile phones, and India’s Tata Nano cars, have become the focus of markets, as well as Internet services like Facebook, online shopping and cloud computing.
As consumers now care more about price, efficiency and energy saving, the changing pattern of consumption and falling demand will force the restructuring of value chains of various industries, a trend suppliers in such value chains should be aware of, Lee said.
TRADE WAR: Tariffs should also apply to any goods that pass through the new Beijing-funded port in Chancay, Peru, an adviser to US president-elect Donald Trump said A veteran adviser to US president-elect Donald Trump is proposing that the 60 percent tariffs that Trump vowed to impose on Chinese goods also apply to goods from any country that pass through a new port that Beijing has built in Peru. The duties should apply to goods from China or countries in South America that pass through the new deep-water port Chancay, a town 60km north of Lima, said Mauricio Claver-Carone, an adviser to the Trump transition team who served as senior director for the western hemisphere on the White House National Security Council in his first administration. “Any product going
STRUGGLING BUSINESS: South Korea’s biggest company and semiconductor manufacturer’s buyback fuels concerns that it could be missing out on the AI boom Samsung Electronics Co plans to buy back about 10 trillion won (US$7.2 billion) of its own stock over the next year, putting in motion one of the larger shareholder return programs in its history. South Korea’s biggest company would repurchase the stock in stages over the coming 12 months, it said in a regulatory filing on Friday. As a first step, it would buy back about 3 trillion won of paper starting today up until February next year, all of which it would cancel. The board would deliberate on how best to effect the remaining 7 trillion won of buybacks. The move
China’s Huawei Technologies Co (華為) plans to start mass-producing its most advanced artificial intelligence (AI) chip in the first quarter of next year, even as it struggles to make enough chips due to US restrictions, two people familiar with the matter said. The telecoms conglomerate has sent samples of the Ascend 910C — its newest chip, meant to rival those made by US chipmaker Nvidia Corp — to some technology firms and started taking orders, the sources told Reuters. The 910C is being made by top Chinese contract chipmaker Semiconductor Manufacturing International Corp (SMIC, 中芯) on its N+2 process, but a lack
NVIDIA PLATFORM: Hon Hai’s Mexican facility is to begin production early next year and a Taiwan site is to enter production next month, Nvidia wrote on its blog Hon Hai Precision Industry Co (鴻海精密), the world’s biggest electronics manufacturer, yesterday said it is expanding production capacity of artificial intelligence (AI) servers based on Nvidia Corp’s Blackwell chips in Taiwan, the US and Mexico to cope with rising demand. Hon Hai’s new AI-enabled factories are to use Nvidia’s Omnivores platform to create 3D digital twins to plan and simulate automated production lines at a factory in Hsinchu, the company said in a statement. Nvidia’s Omnivores platform is for developing industrial AI simulation applications and helps bring facilities online faster. Hon Hai’s Mexican facility is to begin production early next year and the