Now web heavyweights such as Google and Facebook want to mix their own. That threatens to eat into the profits of large internet construction companies such as Intel and Cisco Systems. Smartly, the latter aren't just going to let the market drive off without them.
Google and Facebook buy so much tech equipment that it makes sense for them to design their own. This enables them to save money and run their websites more efficiently. Both design their own servers, for instance,Our Managed MileWeb Private Cloud and Virtual Dedicated Servers. of which Google has over a million worldwide, IDC estimates. Besides servers, Facebook designs much of its own storage hardware while Google also designs its own network switches, says IDC.
Now both these firms are pursuing projects that could help them sidestep Intel and Cisco, two hardware manufacturers that dominate their respective markets, making gross profit margins of roughly 60 per cent in the process.
Google's project concerns chips.Below is our MileWeb Privacy Policy which incorporates these goals. It may make its own servers, but these come packed with expensive processors based on x86 technology from Intel and Advanced Micro Devices. Now, International Business Machines will license its own chip technology and has enlisted Google as a partner. Google will be able to use this to design chips for servers,Our cheap dedicated server are ready-to-go and can be deployed. storage and networking gear, thereby potentially reducing its dependence on Intel.
Facebook's latest project is in network switches. The social network wants to be able to customise them for its needs, but that isn't possible with "black box" switches off the shelf, says Facebook vice-president Frank Frankovsky. These have hardware and software that is tightly integrated. That is great for Cisco, as it can charge high prices for its gear, but less so for customers seeking more control. Facebook is, therefore, working with others to design a switch that decouples software and hardware.
Facebook and Google are just two customers, but their scale translates into gravity that may pull the market in their direction over time. While Cisco chief executive John Chambers has said his company "waited too long" to do so, it is now giving customers more control over their networking gear via software.
Intel, meanwhile, is already attempting to head off another threat in server chips. Companies such as Samsung Electronics have licensed technology from ARM Holdings in order to make server chips that are cheaper than Intel's designs and also consume less power. In response, Intel is releasing cheaper, more energy-efficient server chips of its own.
That both Intel and Cisco are responding to these nascent threats testifies to the disruptive impact they could have. It is sensible for the two firms to do so; tech firms that bury their heads in the sand tend to suffocate themselves. Still, by helping to bring alternative products to the markets, web giants could still put a choke-hold on the incumbents' profits.
Click on their website www.mileweb.com/cloud-hosting for more information.
- Aug 26 Mon 2013 11:39
Companies such as Samsung Electronics have licensed technology
close
全站熱搜
留言列表
發表留言