Cloud Computing: Taiwan’s Next Trillion Dollar Industry
The same way that Europe and America dominated the business world for the last century, Asia is expected to hold sway over the next. From the BRICS nations of India and China to the Tiger Economies of Hong Kong, Singapore and Taiwan, Asia’s dominance of global business is considered inevitable. Therefore, it is no surprise that cloud computing, as the future of Information Technology, has found favor in the continent (and extensive coverage on Cloudtweaks).
The focus of today’s article is Taiwan, one of the aforementioned Tiger Economies. Some of you may have been surprised by the title of this article, considering that the US, the largest economy in the world, is expected to be only around $13 billion by 2014 (See: Where Is Cloud Computing Going? Up, Up And Away! ). That is because the figure mentioned is not in US dollars (USD), but New Taiwan dollars (NTD). Considering that 1 NTD is equivalent to 0.03 USD or 3 cents, a trillion NTDs come to around $30 billion, which by all accounts is still positively gargantuan.
This is the figure that the Taiwanese government mentioned as the targeted production value in its “Cloud Computing Industry Development Program”, launched last year to set goals for investment in cloud computing over five years (http://www.cepd.gov.tw/encontent/m1.aspx?sNo=0013812). While this figure may seem overly optimistic considering comparable numbers for the US which has 25 times Taiwan’s GDP, “production value” seems to be defined as the net economic impact of cloud computing and not necessarily its market. Hence, the projected cloud market may be much smaller.
At the same time, there’s no denying the immense possibilities for this technology on this island state. The government is an enthusiast and is backing “government-to-consumer (G2C), government-to-business (G2B), and government-to-government (G2G) cloud services.” The Ministry of Economic Affairs (MOEA) is also trying to project Taiwan as an ideal location for fostering cloud computing and has announced three major strategies for the industry: autonomous supply, demand creation, and integrated governance. It is also establishing a Cloud Computing Industry Promotion Office to help domestic companies participate in government projects, link the cloud computing industry and government application services together, and carry out integration of services across ministries.
Taiwan, in spite of its small size and burgeoning tensions with China, is a recognized as a world leader in manufacturing anything related to computers – chips, laptops, desktops, etc. Even the world’s favorite Apple iPhones and iPads are built by Foxconn, a Taiwanese company. With the rise of cloud computing, Taiwan may assume a leadership role in the service aspect of computing as well.
By Sourya Biswas