Sat, Oct 15, 2011 - Page 12 News List

Institute forecasts rapid growth of cloud computing

Staff Writer, with CNA

Taiwan will see rapid development in the cloud computing market in the next few years, with security solutions for mobile devices providing great business opportunities, the Market Intelligence & Consulting Institute (MIC, 產業情報研究所) said yesterday.

The MIC forecast that the value created by software and services to establish cloud computing systems would grow at a compound annual rate of 45 percent from NT$800 million (US$26.42 million) in 2009 to NT$4.9 billion by 2014.

The value of the cloud computing services and the data center industry, the institute added, is expected to grow at a rate of 25 percent from NT$3.8 billion to NT$13.3 billion during the same period.

The development of the market, the institute said, would lead to businesses paying increased attention to the introduction of virtualization and the private cloud, with software companies becoming involved in promoting such services.

MIC analyst Weng Wei-sho (翁偉修) said the development of cloud computing is likely to usher in changes to the models used for information technology services.

The institute also predicted that terminal devices would see the incorporation of cloud services and mobile applications.

The MIC pointed out that 21 percent of Taiwan’s major enterprises have adopted smartphones, while 11 percent are using tablet computers and 23 percent have introduced computer systems using thin client terminals.

However, only 6 percent have established security for this kind of mobile environment, which the institute believes presents a potential market.

Roger Somerville, a senior official at Business Software Alliance wrote in a report released on Thursday that Taiwan should pay special attention to the cloud computing sector if the nation plans to rival Singapore in overall information technology (IT) competitiveness.

The nation’s IT industry was ranked the world’s 13th most competitive this year, surpassing Japan and South Korea, Somerville said in the IT Industry Competitiveness Index report published by Economist Intelligence Unit.

The report said that Taiwan still needs to improve its legal environment and the support of IT infrastructure, as its IT infrastructure was ranked 22nd in the world.

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