Press Release

Gemtek's Transformation to “Cloud Service System OEM and ODM”

Global shift in industry trend sparks new business strategies

Keeping focus on their ODM business and gaining a deeper involvement in the telecommunication and network equipment retail market, Gemtek Technology will be changing its direction towards the innovative service model to provide cloud services as it faces the rise the of internet of things (IoT) and the global shift in industry trend. Gemtek's Executive Director Yang Zhengren pointed out that Gemtek has fully realized that their hardware profit is continuously being hard-pressed.



The transformation will be aimed towards providing cloud service systems operations, the overall development of cloud systems, and providing mobile and fixed network, customizable, integrated, and innovative services, etc., which will help Gemtek transform as a cloud service systems contract manufacturer. 



Yang expressed that he estimated that by 2020 there will be over 50 billion IoT devices and objects, and that by 2019 the amount of mobile video stream traffic flow will multiply in growth. As a result, the amount of big data generation will further stimulate market opportunities for telecommunication infrastructures.



During this time, domestic network communications hardware manufacturers will still need to strengthen their existing hardware computing market. At the same time, what they need to pay attention towards is that the future is all about thin client cloud server. It not only sends user behavior feedback to the manufacturer’s server, but the manufacturer may also advertise through this channel. The former is able to provide more value-added services, and the latter is able to generate new profit.


The rise and fall, and the future 

During this period, Taiwan’s network communications companies have witnessed the decline of traditional hardware manufacturers like Nokia and Ericsson, and have seen the rise of integrated service providers like Apple, Amazon, and Google. Therefore, we can see in the future the inevitable trend of the integration of software, hardware, and cloud. The fact is, the discovery of innovative value-added service is the core competence of the game.



Wang mentioned that in recent years Gemtek has chosen three areas to focus on: family entertainment related cloud service platforms, cloud communication related innovative services, and household automation and security management related cloud platform. The purpose there is to utilize their terminal hardware advantages to advance their integration of terminal software and service operations, and to push forward through their clients onto the end users. Gemtek will then split the profit with their clients. For a network hardware manufacturer like Gemtek, this is a brand new operating model and way of thinking.