Taiwan's server market is set to grow over 20 percent from around US$500 million this year to over US$605 million by 2007 as the need for data storage and Internet-based customer service grows, US-based technology research company International Data Corp (IDC) said at a seminar in Taipei yesterday.
"Taiwan is among the most mature server markets," said Avneesh Saxena, analyst and IDC vice president for computing systems in the Asia-Pacific region. "It is more mature than China in the way it buys servers."
This year, China is expected to spend US$2.5 billion on new servers, mostly to improve its computer infrastructure to catch up with industrialized nations, whereas Taiwan is spending on new systems to service its huge export markets overseas and manage manufacturing facilities in China, Saxena said.
But the market is becoming increasingly squeezed as corporate budgets for new equipment are frozen or cut due to economic uncertainties and changing perceptions about information technology (IT) inside companies.
"Budgets are not increasing and that's a big challenge," Saxena said.
In May this year, two leading international publications cast doubt on the policy of throwing money at new IT equipment in the belief that more money means more competitive advantages for businesses.
Computer World claimed US$200 billion, or 20 percent of all IT expenditure, is wasted every year, while business consultant Nicholas Carr wrote in an article entitled "IT doesn't matter" in the Harvard Business Review that higher corporate IT expenditure rarely produce better financial results. Carr also claimed that the importance of IT has diminished as its power and ubiquity have grown.
This has added to the burden of IT managers in companies.
"If you have a data center, your chief operating officer is going to ask you to run it as a profit center not a cost center," said Vernon Turner, another IDC vice president. "Charging for certain services will become an issue."
Despite cost concerns, the server market is expected to grow from between 1 and 1.5 million units this year to over 7 million by the year 2007, Turner said yesterday.
Taiwan is manufacturing an increasing number of those servers, the semi-official Market Intelligence Center (
The value of servers shipped climbed less -- 18 percent on last year -- in the same period to US$381 million, as average prices have dropped, the MIC report said.
MIC predicted more growth this quarter.
"Possessing formidable competitive advantages in rapid design and delivery times, Taiwanese makers have been the direct beneficiaries of outsourcing strategies, and the scale of the Taiwanese server industry's OEM/ODM business has continually risen," the report said.
"In the fourth quarter, with sustained improvement in the global economy and increasing willingness among corporations to procure servers, a greater share of outsourcing by international vendors is expected to drive growth to a new high in shipment volume," the report said.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US