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Data Centers Face Major Disruptions in Near Future: Gartner Page 2

By Jeffrey Burt (Send Email)
Posted September 14, 2014

U.S. lawmakers have been vocal about their distrust of China's government and companies from the country—such as Huawei—worrying that products from these countries could house secret backdoors that would give Chinese officials entrée into U.S. government networks. That has helped stoke increasing anti-U.S. sentiment in China.

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The analysts are predicting that the combination of deep investments, respected brands like Huawei and Lenovo, solid original design manufactures (ODMs) in Taiwan and the electronics market in China—along with the distrust of the United States—will increase China's share of the data center infrastructure space by 2 percentage points by the end of 2017.

Finally, what Gartner calls the "Snowden Effect"—referring to Edward Snowden, the ex-National Security Agency analyst who leaked a broad range of agency secrets—has driven more tech buyers to view large multinational vendors as untrustworthy. For example, reports linked to the Snowden leaks indicated that the U.S. government had compromised systems from Cisco Systems, Dell and other U.S. vendors to help with its espionage activities, leading those companies to deny working with the U.S. agencies.

Such distrust has led buyers to shift some of their focus to open-source software and hardware and technologies developed in-country. The result is growth among local, smaller assemblers and sales by white-box suppliers, they said. While some international suppliers will be able to keep their positions for several years, vendors like Intel and AMD will see increased competition from ARM and its manufacturing partners for smaller server workloads.

In addition, flash storage will grow in importance, software makers will have to invest money to ensure that their applications are compatible with a greater range of hardware—or decide which hardware makers to work with—and the infrastructure tool market will become more fragmented.

Originally published on eWeek.
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