Sat, Dec 09, 2017 - Page 12 News List

Quanta Computer upbeat on cloud business

EDGING UP:The company said that it expected demand growth from telecoms investing in edge computing, in which data is processed close to the point of collection

By Lauly Li  /  Staff reporter

Cloud Gate Dance Theatre founder Lin Hwai-min, left, yesterday smiles as Quanta Computer Inc chairman Barry Lam speaks at a news conference at an Eslite bookstore in Taipei’s Xinyi District to promote the book Capturing Cloud Gate, which includes photographs of the troupe’s past productions as well as Lin’s memoirs. Lam has sponsored the publication of the books and is to donate revenues to Cloud Gate.

Photo: Hu Shun-hsiang, Taipei Times

Quanta Cloud Technology (QCT, 雲達), Quanta Computer Inc’s (廣達) datacenter solution subsidiary, yesterday forecast sales would keep growing by a double-digit percentage next year on robust datacenter demand from hyperscale Internet service providers (ISP) and non-hyperscale enterprise clients.

“We are optimistic about next year. The outlook is very promising,” QCT president Mike Yang (楊晴華) told reporters on the sidelines of the annual meeting of the Cloud Computing & IoT Association in Taiwan.

Quanta set up its cloud computing business in 2004 and established QCT in 2007. QCT’s datacenter solutions include server, storage, switch and rack systems, and other cloud solutions. Facebook Inc, Alphabet Inc’s Google and Microsoft Corp are on the company’s client list.

QCT has set up production bases in the US, Europe, China and Japan, Yang said.

Revenue from the cloud computing business contributed 30 percent to Quanta’s sales of NT$276.18 billion (US$9.2 billion) last quarter, company data showed.

The cloud computing business includes revenue from QCT and Quanta’s wearable devices, as the company considers those an application of cloud-computing technology.

Demand for cloud computing infrastructure from hyperscale ISPs, such as Facebook, would continue to expand strongly next year, Yang said, adding that QCT also saw surging demand from non-hyperscale clients in the past year.

Non-hyperscale enterprise clients are chiefly companies whose resources and scale of operations are smaller than Google or Facebook, but also require heavy cloud computing infrastructure, as they collect large amounts of specific data, such as Uber Technologies Inc and Spotify AB.

QCT did not pay much attention to non-hyperscale clients in the past few years, but they would become a growth catalyst for the company in the coming years, Yang said, declining to disclose any names.

Yang said that international telecoms’ increasing orders as they build edge computing infrastructure — in which data is processed close to the source than at the center of the network — would also support QCT’s operations.

QCT is to expand production capacity at its production bases in San Jose, California and Dusseldorf, Germany, next year to meet rising demand, he said.

In related news, Quanta yesterday said its revenue grew 2.3 percent annually to NT$94.71 billion last month, bringing its cumulative revenue for the first 11 months to NT$934.64 billion, up 18.46 percent from NT$789.02 billion over the same period last year.

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