“Taiwan Business Alliance”
International cooperation and
business opportunities for Taiwan’s
cloud computing industry
Business strategy evolution:
Changes for Taiwan ICT players
Manufacturing capacity and technology investment are key strength of Taiwan
ICT players
Acquiring foreign investment can help support the completion of the supply
chain
Hardware and software resources are highly integrated, leading to better
adoption and quicker transitions for a rapidly changing technology market.
Rethinking the traditional hardware-centric concept and implementing a more
balanced development plan – a mix of hardware manufacturing and software
services
Responding to rapid changes in mobile client devices
Capitalize on co-development opportunities with upstream industry leaders
Taiwan ICT players provide a good platform for quick integration for business
and technology development
Reform the mindset and leverage your own strengths to compete with global
players
Cloud application: Global business
opportunities for Taiwan’s ICT industry
Information equipment vendors
New business potential for PC Servers, storage
equipments and data center facilities
Taiwan’s ICT industry will be one of the first to benefit from
cloud computing
Mobile device manufacturers
A wide product range from mainstream notebook PCs to
handsets and automotive & telematics devices
Emerging business opportunities for Internet devices
System integrators and telecoms
Provide essential software services or support for Taiwan
hardware manufacturers
Powerful integration between hardware makers and big
telecom service providers
Create more versatile and innovative services
Taiwan perceptions for mobile cloud
computing business
Reach 10 billions internet devices worldwide
Including handsets, notebook PCs and tablet PCs
Handset is the core device for mobile Internet
applications
Used for accessing various cloud applications
1.4 billions handsets to be sold in 2010
358 millions mobile devices in 2010
Emerging markets increase importance
Core applications
Infotainment, Productivity
Communications, Social Networking
Over 1 billion annual handset
shipments help boost cloud
applications
Unit: million sets
2008~2013 worldwide handset
shipment forecast
Source:DIGITIMES，2010/4
Smartphones move into mainstream
Mobile device and smartphone shipments, 2009-2014
600
Unit: million sets
497
500
439
384
400
322
300
247
181
200
100
82
111
148
185
214
239
0
2009
2010(f)
2011(f)
Non-mobile device
Source: iSuppli, compiled by DIGITIMES, 2010/3
2012(f)
2013(f)
Smart Phone
2014(f)
Cloud storage applications:
Proving traction in 2010
Source: Chetan Sharma Consulting, 2010
Taiwan cloud storage solutions
and business opportunities
Start from data synchronization and integration technology and keep on a
consistent path to industry leadership
Apple, Google, Nokia and Microsoft all follow the same steps
Public cloud, private cloud or government cloud: All rely on massive storage
equipment
Technology and business opportunities of backend storage servers
Container stacking cloud computing data centers: System integration
business for hardware and software players
Wistron, Inventec and Quanta aggressively push the market
Strategic partnership with industry leaders helps to accumulate skills and
experience needed to integrate hardware and software resources
Storage solutions and business of client devices
Increase access speed with SSD components
Help Phision and Silicon Motion Technology to upgrade technology
Bring in Intel and Toshiba as strategic partners
Cloud storage concept
High speed data access with build-in SSD devices
Source: DIGITIMES Research,2010/4
SSD industry overview
and key players
Source: Gartner、Techno System Research, compiled by DIGITIMES, 2010/3
Mobile cloud computing service
development approach:
The app store
Apple App Store:
A big push for applications
Unit: million times
Unit: software
3,500
Cumulative number of downloads
3,000
Application Number
133979
85000
2,000
100,000
65000
1,500
3000
35000
1,000
0
140,000
120,000
2,500
500
160,000
500
7500
200
1500
15000
500
2000
1000
Jul'08 Oct'08 Jan'09 Apr'09 Jul'09 Sep'09 Jan'10
Source: Apple computer Inc., 2010/1, compiled by DIGITIMES, 2010/3
80,000
60,000
40,000
20,000
0
App stores dramatically reduces
business barriers for developers
Shorten software publish cycles
Past
Developers
Publishers
Distributors
Now
Developer
App Stores
End
Customers
Telecom
End
Customers
Increase profit margins
Developers
Publishers
Distributors
Telecom
Past
Now
Developer
Source: Idate, 2009/11, compiled by DIGITIMES, 2010/3
App stores
Peak download statistics
thru mobile devices, 2008-2013
Unit: million times
2009~2013 mobile devices download statistics
and forecast
Source: ABI Research, DIGITIMES，2010/4
Taiwan ”App. Store” model
App Store reduces developers’ barriers to do business
Shortens the distance between developers end customers
Mobile device downloads a booming market
Dramatic growth in the next few years
Global perception of Taiwan developers will be key to success
Worldwide 3 billion handsets market controlled by 24 big
Telecom companies
Telecom services is the entrance for the App Store
Government will play a big hand in helping local Telecoms to
corporate with worldwide Telecom companies
Duplicate the model in emerging markets such as China
A good example is the Quanta Computer and Chunghwa
Telecom corporate project
Opportunities and challenges
Challenge from iPad-like compact mobile products rising
Implement mature technologies
Don’t bother with unnecessary software
Focus on market niche: Specific applications and type
of customers
New product will still drive trends
Taiwan excels at quick response (time-to-market) to
market changes
Taiwan well suited to serve as technology gateway
Worldwide component demand: Market
share by region (A US$209 billion market)
2009
11.9
Asia
Japan
5.1
Europe
North
America
Others
13.4
57.7
11.9
Demand shifts to Asia markets
And ¾ in Greater China, with 2/3 of that
controlled by Taiwan suppliers
Source: Gartner, WSTS,2009/5
Targeting the key markets
> 10.2”
Notebook
7”～10.2”
3.5”～7”
MID
Broadcom, Qualcomm
< 3.5”
ARM or x86 CPU
eBook
Tablet PC
Broadcom, Qualcomm
ARM or x86 CPU
Lin or Win OS
SSD or HDD
Lin OS
Smartphone
SSD
Broadcom, Qualcomm
MIPS,ARM CPU
Many OS,SSD
Source：DIGITIMES Research，2009/6
x86 CPU
Win OS
HDD
Managing Taiwan’s changing role
in shift to cloud computing
Change the model of OEM/ODM business
Convert to full-service manufacturing provider and bring about the
organization change in a timely manner
Manufacturing as a service
Design as a Service
SI as a Service
IP Portfolio as a Service
Help Taiwan ICT industry become one of the first to benefit from the
transition to cloud computing
Create local value in Taiwan
Build an innovative business model through a cloud computing
infrastructure
Increase applications and quality to gain a wider local market and
business scale
Build up local system integrators and enhance service capabilities
Cloud computing industry infrastructure
SIaas
Maas
IPaas
Daas
Software
Server
Storage
Network
Source: DIGITIMES, 2010/5
Taiwan ICT Industry update
Rev. (US$ million)
2008
2009
GR(%)
173,476
184,815
6.5
Optical (73)
47,818
38,594
-19.3
Semiconductor (150)
53,012
55,532
4.8
Components (182)
28,463
29,096
2.2
7,901
6,613
-16.3
310,672
314,650
1.2
ICT Manufacturing(143)
Service and S/W (82)
Total (630)
Source：DIGITIMES Research, 2010/3