Microsoft wants cloud computing research centre in Taiwan

The plan will spearhead software giant, Microsoft's push into the region's budding cloud computing industry and also help local electronics firms develop devices and services related to "cloud computing". The centre will be established before the year's end, according to Ming-ji Wu, chief of the economic ministry's Department of Industrial Technology.

Cloud computing is a revolutionary computing style where the hosting and storage of services and data are done by remote centralized computers. Many of the world's largest technology companies have embraced cloud computing due to its cost-saving features.

Microsoft Chief Executive Steve Ballmer said on Wednesday the Software and Services Excellence Centre will focus on co-ordinating and further developing the company's efforts in cloud computing with its contract manufacturing partners. Ballmer also revealed that Microsoft is planning to invest 9.5 billion US dollars in research and development projects related to cloud computing next year.

Microsoft has yet to release details on the size of investment or the number of people it plans to hire for the centre but the establishment is expected to benefit contract manufacturers such as Hon Hai and Quanta.

"We need to keep our ability to really work with our ODM (original design manufacturing) and OEM (original equipment manufacturing) partners on what the devices will look like," Ballmer said.

Microsoft is looking to catch up with rival Google, which recently won a multi-million dollar cloud contract from the Los Angeles City Council.