Facebook by passes Dell, HP and others and orders servers directly from the supply chain.
Facebook is building two new data centers to support their growth. Facebook has about 750 million users. At this scale your data centers are massive investments. Facebook apparently sees the need to configure their own servers and orders them directly at original design manufactures (ODMs) in Asia. Digitimes reports that their sources say that Facebook ordered directly at Quanta Computer and Wistron to set up a customized data center in Oregon and in North Carolina.
This means Facebook cuts out the typical brand suppliers of servers like Dell, HP and IBM and goes to the source.
Digitimes says in the report that Facebook might be able to save at least 20% in costs ordering directly from upstream ODMs. I assume that Facebook has the man power to provide their own technical support and is not relying on the services that brand-name server manufacturers offer.
Luigi Lugmayr Luigi Lugmayr (Google) is the founding chief Editor of I4U News and brings over 15 years
experience in the technology field to the ever evolving and exciting
world of gadgets. He started I4U News back in 2000 and evolved it into
vibrant technology magazine.
Luigi can be contacted directly at email@example.com.
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