cens logo

International Cloud Heavyweights Seek Partnerships with Taiwan's ITC Makers to Boost Revenue of Cloud Services

Feb 26, 2016 | By Ken Liu

International cloud heavyweights are seeking partnerships with Taiwan's ICT manufacturers to drive the market. (cloud equipment shown)International cloud heavyweights are seeking partnerships with Taiwan's ICT manufacturers to drive the market. (cloud equipment shown)

Cisco Systems, Inc., Hewlett-Packard Co. (HP), Dell, Inc., and Huawei Technologies Co., Ltd. are reported to be aggressively seeking partnerships with Taiwan's information-communications technology (ICT) manufacturers as they attempt to boost revenue by offering cloud data center services during intensifying competition, market saturation, unpredictable consumer preferences for mobile devices. 

Reports by TV channels as CNBC and CNN have said that Chinese smartphone makers as Xiomi survives on paper-thin margins as they target bigger market shares in China and gradually overseas as Taiwan; while desktop personal computer makers' livelihoods continue to be squeezed by steadily rising popularity of digital mobile devices as smartphones, notebook PCs and notes. And the ever-shortening gap between product launches of smartphones only show the formidable challenges of the segment, whose prices at launch often decline 20 percent or more in a year or less upon introduction of newer models. A recent TV report on CNN said that only two smartphone brands were profitable in 2015.  

Taiwanese makers that are approaching include the Hon Hai-Foxconn Technologies Group, reportedly Taiwan's No.1 electronics manufacturing conglomerate by revenue, and Quanta Computer Inc., a major notebook computer maker based in Taiwan with customers as Apple, Compaq, Dell, HP, etc. 

Hewlett-Packard Enterprise (HPE), HP's cloud subsidiary, is spearheading an alliance formed around its Open Platform for Network Function Virtualization (OPNFV). The alliance has over 100 members including China Mobile Ltd., ZTE Corp., Intel Corp., and the SK Group.

Cisco is the leader of the OpenDaylight alliance, which has around 110 members including IBM Corp., Microsoft Corp., Lenovo Group Ltd., Intel Corp., Dell, and Tencent Holdings Ltd.

Huawei is leading the NFV Open Lab alliance, which has over 100 members. Industry executives feel there is a high likelihood for the Huawei alliance to replace the Cisco consortium.

The three alliances have instructed their contract suppliers to meet specifications and verifications when filling orders for equipment, including switches, servers and storage.  

Industry executives estimate that verified suppliers to ship twice as many switches, servers and storage equipment by 2017 worldwide as they did in 2016, to be mostly driven by emerging market of 5G mobile connection and Internet of Things (IoT).

The trend is inspiring cloud-infrastructure providers to accelerate their expansion plans. The IBM-led Softlayer consortium is speeding up its expansion plan, Skytap Inc. plans to install its seventh cloud data center in Canada by early March this year, and LinkedIn Corp. has begun installing 100G-grade data connectors.

Industry executives project the traffic volume of data on the Internet to account for 83 percent of the capacity provided by cloud-based data centers worldwide by 2019, up from 2014's 61 percent, mainly thanks to increasing demand for cloud computing.

The rapid growth in cloud-computing demand will also drive the growth in the market for data centers that are built on Software-Defined Networking (SDN). Industry executives estimate the global market for SDN to spike to US$35.6 billion by 2018 from US$3.4 billion in 2014.

Although many big players of the global cloud-storage industry have trimmed their bloated budget for expansion plans based likely on overly optimistic outlook and lack of thorough consideration, Amazon, Microsoft, and Google have set the goal of boosting revenue by double-digits this year. Their ambitious goals are estimated to fuel the global demand for cloud equipment, reportedly a forte of Taiwan's ICT industry.


Industry Reports

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


(File cabinets, photo courtesy of Chyn Fuh Enterprise Co., Ltd.)

Taiwan's Furniture Industry Amid the COVID-19 Pandemic

Oct 16, 2020

The COVID-19 pandemic has deeply affected global and Taiwan's political and economic landscapes. Unlike some industries, the furniture sector did not escape unscathed, facing a squeeze from management and costs. While Taiwan continues to implement a stable, successful outbreak response, the industry has also misjudged the economic downturn duration. The furniture industry has yet to fully recover...


2020 Energy Vision Summit for Green Energy to Kick off in Nov.</h2>

2020 Energy Vision Summit for Green Energy to Kick off in Nov.

Oct 14, 2020

The Taiwanese government has pledged to lead the effort in further developing the sustainable green economy, which is among the sectors highlighted in the Tsai administration's "5+2 Innovative Industries Initiative." Economic Daily News is hosting the "2020 Energy Vision Summit - Green Energy 2.0" on November 11. As one of the government's core policies, improving the island's energy self-suff...



Industry In-Focus

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry </h2>

Foxconn Engages European Auto Parts Talks for Tier 1 and EV Market Entry

Oct 20, 2020

Foxconn is looking to explore cooperation with European tier 1 auto parts suppliers in developing 3D auto-use curved glass covers. The electronics manufacturer is also reportedly engaging in talks with European auto firms to make curved, one-piece system consoles and dashboards. In a bid to diversify its product line, Foxconn's plans to enter the lucrative auto parts industry began with provid...


China's Strong Auto Market to Buoy Taiwan's Related Industries</h2>

China's Strong Auto Market to Buoy Taiwan's Related Industries

Oct 19, 2020

Taiwan's auto parts market has seen positive impacts as the Chinese automotive market continues to grow in its sixth consecutive month. Hotai Motors and Yulon Nissan Motor are the two significant firms enjoying the leverage. The island's related industries are benefiting from the strong performance of China's automotive market. Industry members say as long as competitive Taiwanese firms mainta...


Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions</h2>

Foundry Supply in a Pickle Amid Surging Demand Due to Pandemic and Restrictions

Oct 19, 2020

Industry experts expect to see challenging times ahead for production in the foundry sector, forecasting that the current situation will not let up in the short-term and warns of unbalanced supply-demand next year. During the pre-pandemic era, IC design firms say clients usually made urgent orders to avoid having to manage inventory. Yet, considering limited foundry production volume, clients ...



Supplier News

(Electric Vehicle-Photo courtesy of CENS)

Microtest: Precise, Reliable, and Always Improving

Oct 16, 2020

Eyes Stake in 5G Industry with Impedance Analyzer 6632 With greater demand for electronics and manufacturers' need for more precise and diverse applications than before, testing equipment that ensures the reliability, safety, and quality of parts are in hot demand. Founded in 1993, Microtest Corp. is a professional maker and developer of high precision and automatic testing and measurement ins...


(Photo courtesy of Ho Shuan Enterprise Co., Ltd.)

Ho Shuan is Your Choice for Educational Furniture and More

Oct 16, 2020

Insisting that its customers are always a top priority, Ho Shuan Enterprise Co., Ltd.'s R&D team provides the best educational furniture and peripherals, computer tables, and desks to meet all customer requirements. Established in 1986, Ho Shuan has experienced recent sluggish local market performance, but eventually rebounded and came back better than ever. Despite difficulties, the firm neve...

HO SHUAN ENTERPRISE CO., LTD.


(S16-M01 Short Swivel-Handle Cabinet, photo courtesy of Chyn Fuh Enterprise)

Chyn Fuh: A Quality OA Metal Furniture Maker

Oct 16, 2020

Chyn Fuh Enterprise, founded in 1993, entered the market with the sole aim of offering other OA metal furniture options for customers. Since its inception, Chyn Fuh has focused on designing and producing OA metal furniture, providing various office use products, including file cabinets, storage cabinets, office desks, and different assistive metal products. Chyn Fuh partook in many government ...

CHYN FUH ENTERPRISE CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

Gearing up for Post-COVID Recovery, THS Coming Soon in October</h2>

Gearing up for Post-COVID Recovery, THS Coming Soon in October

Oct 07, 2020

As the only hardware and hand tools trade show taking place this year globally, the three-day Taiwan Hardware Show (THS) will soon kick off on 13th October at the Taichung International Exhibition Center. Positive industry outlook for the post COVID-19 era has led to over 370 companies signing up as exhibitors, in a bid to gear up for a long-awaited economic recovery and plan the next strategic m...


Stable Development and Popular Fastener Show in China</h2>

Stable Development and Popular Fastener Show in China

Sep 11, 2020

Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...


2020 Medical Taiwan to Host In-Person and Virtual Events</h2>

2020 Medical Taiwan to Host In-Person and Virtual Events

Sep 10, 2020

2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...