【Taipei, Taiwan】The Internet of Things (IoT) is fast becoming the leading field in the computing industry. In particular, Industrial Personal Computers (IPC), which are better tailored to the Business-to-Business (B2B) market, is growing at an unprecedented rate. IEI's (3022) general manager, Jordan Jiang, is confident of the IPC's competitive advantage in rapid IoT development. He believes that with customers becoming more receptive towards adopting smart network management solutions, and with the demand for IPC being driven upwards by the robust growth of the IoT industry, there is potential for IPC-related companies to double in value in two years.
Investing in QNAP is a key strategic move to tap into the advancements in IoT platforms. QNAP left the blooming Small Office/Home Office (SOHO) market in the U.S and moved into developing commercial private cloud services for background data traffic management, supported by IEI's diversified industrial computer products. QNAP is now designing and developing solutions for bedside care, smart homes, remote monitoring and other vertical markets, which are expected to drive QNAP's revenue towards NT$ 10 billion in two years.
Based on the previous target set by IEI's chairman, Teddy Kuo, QNAP's turnover reached NT$ 7 billion last year, with an annual growth rate of 20%. This year, QNAP started at a pace just as fast, if not better, than that of the previous year, with revenue pushing past NT$ 8 billion, and potentially reaching NT$ 9 billion. This places QNAP almost on par with IEI, especially with the expansion and upgrading of its new factory in Qidu, which sees a 2-fold increase in productivity as compared to last year.
IEI pointed out that with maturing 3G, 4G and WI-FI networking environments, smart management systems can offer better work efficiency. The Network-attached Storage (NAS) from QNAP has proven to be invaluable for background data management in retail businesses. Not only was it recently adopted by a Spanish apparel company, a large, upmarket departmental store in China also bought dozens of NAS units last year. A German industrial plant also uses the NAS for the management of its private cloud storage system.
Jordan Jiang emphasized that the NAS products give the company an unmatched competitive edge. Hence, the IEI IoT platform promises to deliver much better secondary development results to its customers.
In the area of mobile data collectors, the MODAT-531, which IEI launched last year, was recently awarded the prestigious 2015 Red Dot Design Award in Germany out of 4, 928 entries from all over the world. It is also the only hand held electronic product to win the award. The MODAT-531 is equipped with a 1D/2D barcode scanner, which facilitates data capture for analyses. Since its launch, the MODAT-531 has been satisfactorily deployed in China Lottery, and is in pilot production for the Police Information System of the P.R.C. In addition, two large hospitals in northern Taiwan purchased 500 units of the MODAT-531 for the management of their pharmaceutical inventory last year, and are in the process of negotiating the specifications for the next batch of order.
The total value of the IPC industry is estimated to be in range of hundreds of billion TWD in 2014. According to Jordan Jiang, the demand for IoT IPC is expected to escalate and the global IPC industry is set to double in size within two years. IEI sets itself apart from its competitors with its a unique commercial IoT platform, and is well positioned to benefit immensely from the explosive growth in the industry.
The future looks promising for the IoT IPCs. With IEI's revenue in the first quarter of 2015 reaching NT$ 1.688 billion, and a record-high annual growth rate of 34.63%, we can expect double-digit annual growth in the next few quarters.