Taiwan Business Alliance International cooperation and business opportunities for Taiwan s cloud computing industry

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1 Taiwan Business Alliance International cooperation and business opportunities for Taiwan s cloud computing industry

2 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 2

3 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

4 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 millions mobile devices in 2010 Emerging markets increase importance Core applications Infotainment, Productivity Communications, Social Networking 4

5 Unit: million sets Over 1 billion annual handset shipments help boost cloud applications 2008~2013 worldwide handset shipment forecast 5 Source:DIGITIMES,2010/4

6 Smartphones move into mainstream Mobile device and smartphone shipments, Unit: million sets 6 Source: isuppli, compiled by DIGITIMES, 2010/3

7 Cloud storage applications: Proving traction in Source: Chetan Sharma Consulting, 2010

8 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 8

9 Cloud storage concept High speed data access with build-in SSD devices Source: DIGITIMES Research,2010/4 9

10 SSD industry overview and key players 10 Source: Gartner Techno System Research, compiled by DIGITIMES, 2010/3

11 Mobile cloud computing service development approach: The app store 11

12 Apple App Store: A big push for applications Unit: million times Unit: software 12 Source: Apple computer Inc., 2010/1, compiled by DIGITIMES, 2010/3

13 App stores dramatically reduces business barriers for developers Shorten software publish cycles Past Developers 開 發 者 Publishers 發 布 商 Distributors 聚 集 商 Telecom End Customers Now Developer 開 發 者 App Stores End Customers Increase profit margins Past Developers Publishers Distributors Telecom Now Developer App stores 13 Source: Idate, 2009/11, compiled by DIGITIMES, 2010/3

14 Peak download statistics thru mobile devices, Unit: million times 2009~2013 mobile devices download statistics and forecast 14 Source: ABI Research, DIGITIMES,2010/4

15 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 15

16 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 16

17 Worldwide component demand: Market share by region (A US$209 billion market) Demand shifts to Asia markets And ¾ in Greater China, with 2/3 of that controlled by Taiwan suppliers 17 Source: Gartner, WSTS,2009/5

18 Targeting the key markets > 10.2 < 3.5 Smartphone 3.5 ~7 MID Broadcom, Qualcomm ARM or x86 CPU Lin OS SSD 7 ~10.2 ebook Tablet PC Broadcom, Qualcomm ARM or x86 CPU Lin or Win OS SSD or HDD Notebook x86 CPU Win OS HDD 18 Broadcom, Qualcomm MIPS,ARM CPU Source:DIGITIMES Research,2009/6

19 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 19

20 Cloud computing industry infrastructure SIaas Maas Daas IPaas Software Server Storage Network Source: DIGITIMES, 2010/5

21 Taiwan ICT Industry update Rev. (US$ million) GR(%) ICT Manufacturing(143) 173, , Optical (73) 47,818 38, Semiconductor (150) 53,012 55, Components (182) 28,463 29, Service and S/W (82) 7,901 6, Total (630) 310, , Source:DIGITIMES Research, 2010/3

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