Mon, Oct 07, 2002 page10

• `Thin clients' become a large market

  COMPUTER HARDWARE A thin client is connected to a server where data is stored, eliminating the need for storage drives making the units much cheaper than a PC

  • By Bill Heaney / STAFF REPORTER
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  Taiwanese manufacturers of compact network computers, or thin clients, will see an almost 50-percent increase in shipments every year for the next four years, according to a report by the Market Intelligence Center.

  Greater awareness about the benefits of thin-client computing and the increased popularity of Web-based applications are likely to prompt the rapid growth of sales of these low-cost computing options, the report said.

  In a press release to promote the publication of the report issued last week, center analyst Joe Chang (章至好) said, "It is expected that once business users recognize the strengths of this relatively nascent technology, most corporations will include thin clients on their short-list of options when purchasing IT solutions."

  A thin client is connected to a powerful server where data is stored and accessed. The small computers therefore do not have any storage drives, such as a CD-ROM, DVD-ROM, floppy disk or hard disk. This makes thin clients much cheaper than desktop computers.

  Analysts are upbeat about the prospects for thin-client sales growth. Research firm International Data Corp predicted in August that the world market would grow at 30 percent annually through 2006. Last year over 1 million units where shipped. International Data forecasts that 1.4 million thin clients will be shipped this year.

  Taiwan leads the world in thin-client manufacturing. Of the 1 million units sold worldwide last year, 510,000 were shipped by Wyse Technology Taiwan (台灣慧智), which is based in the Hsinchu Science-based Industrial Park.

  By next year, center analysts expect Taiwan's thin-client shipments to reach to 57 percent of the world market, and then rising to 60 percent by 2006.

  The center expects an 81-percent increase in shipments next year over this year.

  The growth in thin-client sales is running counter to falling overall computer sales.

  "This market is overcoming a number of obstacles, including slumping economies and vendor consolidation," Bob O'Donnell, research director of device technology at International Data wrote in a report in August.

  The US accounted for more than half of worldwide sales last year, the report said. Europe was second with 36.8 percent.

  Chang told the Taipei Times last week that these two markets were mature and that most new growth would be in Asia, particularly in China.

  "Taiwanese manufacturers, benefiting from geographic proximity and a common language, should be able to develop the Chinese market in the future," Chang said in a press release. "However, the development of this market will require extensive resources."

  Taiwan's thin-client makers increased shipments 30 percent year-on-year in the first half, according to center figures. If these makers exploit the emerging China market, 6.6 million units will be shipped annually by 2006, the center said.

  For your information

  Cornering the market

  * Of the 1 million thin clients sold worldwide last year, 510,000 were shipped by Wyse Technology Taiwan. * By next year, analysts expect Taiwan's thin-client shipments to reach to 57 percent of the world market. * An 81-percent increase in shipments is expected next year compared with this year. * The US accounted for more than half of worldwide sales last year and Europe was second with 36.8 percent.
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