Direct Orders a Threat to Server Brand Vendors

Server brand vendors such as Hewlett-Packard (HP), Dell and IBM have already started feeling the threatened as major social network players place data center orders directly with PC ODMs. As reported on DigiTimes, vendors reportedly have demanded ODMs not take orders or they will shift server orders.

"Google has recently invested US$300 million to establish a data center in Hong Kong which is set to start operating in early 2013. The sources revealed that construction of the data center will be handled directly by Quanta Computer; however, Quanta has declined to comment about its clients.

"In addition to Google, Facebook's data centers in Oregan and North Carolina, in the US, are both directly outsourced to PC ODMs and are custom designed to fit the social network player's needs. In future, Facebook is expected to increase its data center outsourcing proportion to PC ODMs and the strategy is expected to strengthen the trend of placing orders directly with PC ODMs, the sources noted."

Read the Full Story at DigiTimes