The world's number one thin client computer maker Wyse Technology will invest heavily in China this year, a key strategic market for the US business.

"We are investing 10 times what we did in 2004 in China," said John Kish, president and CEO of the US firm.

Thin client computers, different from traditional personal computers, have very few functions on the users' side with software and data stored and distributed by central servers, with an aim of heightening security. This simplicity also means lower costs.

Kish declined to reveal the exact amount of the investment, but said China would become an extremely important market for his firm.

The firm, once controlled by Taiwanese conglomerate Koo's Group and acquired by US investment fund Garnett & Helfrich Capital, has decided to set up its Asia Pacific headquarters in Beijing.

Andrew Hu, former head of US software giant Oracle and well-known storage firm Network Appliance's Chinese operations, was appointed president of Wyse's Asia Pacific business.

As Wyse tries to transform itself from a Taiwanese company to a global firm, expansion in the Asia Pacific market, especially in China, has become a crucial factor.

Terence Garnett, chairman of the US firm, predicted that Wyse's revenues would grow from US$200 million in 2004 to US$1 billion in 2010.

"Making Wyse a truly international company is the only way to achieve that," said Garnett.

Revenues from the Asia Pacific region contributed 12 per cent to the firm's global total, but Kish expected that figure to rise to 20 per cent this year and 30 per cent in 2006.

China, with its increasing demand for high performance-price-ratio products, has become a top priority in Wyse's global expansion strategy - the foremost reason for the decision to base the regional headquarters in Beijing.

The firm has cut its research and development team in the United States from 150 people half a year ago to 25 at present and moved most of its R&D functions to Beijing and Bangalore in India.

The Beijing development centre, which now has 20 engineers, is focused on the development of Wyse's proprietary Blazer operation system and Linux operating system, as well as localization work.

The team is expected to grow to 50 by the end of the year and double again after one year, according to Hu.

..Source: China Daily