ASUS: SME Hardware Procurement Slightly Cautious, AI-Driven Digital Transformation Expected to Boost Demand

ASUS (2357-TW) held a press conference today (16th) for its enterprise solution platform, ASUS EXPERTHUB. Liao Yi-Xiang, General Manager of the System Business Division at ASUS United Technology, a subsidiary of ASUS, stated that from the second half of this year into next year, small and medium-sized enterprises (SMEs) are slightly reducing capital expenditures, including pure hardware procurement, due to economic uncertainty. However, he also observed a rising urgency among businesses for software transformation, which in turn is stimulating demand for hardware. ASUS is optimistic about sustained growth in this area.

Liao explained that this shift in budget allocation is primarily driven by the rapid advancement of AI technology, which has significantly lowered the cost of software development and deployment, thereby increasing SME interest in digital transformation. Systems that were once prohibitively expensive can now be accessed via SaaS subscription models for as little as 100 RMB per month, allowing business owners to experiment affordably.

This software-led transformation trend ultimately drives demand for on-premises hardware when enterprises need to ensure data security or perform data cleansing. As a result, ASUS's server and high-end endpoint device sales are being boosted.

Liao observed that many SMEs in Taiwan are undergoing a wave of second-generation leadership succession, with younger successors possessing strong awareness of digital transformation and AI. As labor shortages and complex operational processes intensify in Taiwan, business owners are no longer satisfied with isolated tools. Instead, they seek data standardization and intelligent systems to address workforce shortages.

This integration of software and hardware is pressuring traditional IT service providers to evolve. Value-added distributors and system integrators must transition from pure hardware sales to becoming solution providers. Liao noted that many traditional distributors lack maturity in software and cloud integration technologies, and those failing to upgrade with market demands risk obsolescence.

To address this, ASUS has launched the ASUS EXPERTHUB platform, integrating over 10,000 distributors across Taiwan to jointly capture the dual revenue opportunities arising from digital transformation-driven hardware and software demand.