Mon, Jun 11, 2012 - Page 11 News List

Quanta tapping S Korean cloud computer market

Staff writer, with CNA

Quanta Computer Inc (廣達), the world’s top contract laptop maker, has partnered with South Korea’s main Internet provider KT Corp to deliver branded cloud servers, according to a company source familiar with the matter.

Taoyuan-based Quanta, which unveiled its own cloud brand “QCT” last month, is tapping into the Asian telecoms segment while maintaining a focus on the US market, the source said, requesting anonymity because the person was not authorized to speak on the matter.

This year, Quanta is expected to generate higher revenues from its branded cloud products than from its contract cloud business for clients, the source said.

“The knowledge edge in the notebook business is blurring, but we still have domain knowledge in the cloud business,” the source said. “We are just sticking to the trend.”

Last month, Quanta won orders for 100,000 cloud servers from NTT Docomo Inc, Japan’s biggest mobile phone service operator, and will begin shipments in the third quarter of this year, Taiwanese media reported, citing sources in the Japanese supply chain.

NTT has considered Quanta’s cloud servers to be the most competitive products on the market since the Taiwanese firm became a major supplier of cloud servers to big names such as Google Inc and Facebook, the report said.

Moreover, Japan’s second-largest mobile carrier, KDDI Corp, reportedly gave hundreds of cloud server orders to Quanta and Wistron Corp (緯創), with Quanta favored to win follow-up orders because of its partnership with big customers.

Quanta said at an investors conference last month that its non-notebook business accounted for 30 percent of its total revenue last year, and the figure was forecast to rise to 35 percent this year.

According to research firm Gartner Inc, worldwide server shipments grew 1.5 percent to 2.35 million units in the first quarter of this year, while server revenue declined 1.8 percent year-on-year to US$12.44 billion.

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