Twitter will place orders for servers directly with Taiwan-based ODMs instead of vendors such as Hewlett-Packard, Dell and IBM, according to server supply chain players.
Google and Amazon took the initiative to adopt a direct-account model with Taiwan-based ODMs for their cloud computing data centers, and Facebook and Microsoft have followed suit, the sources indicated. As the direct-account model has the advantages of shorter shipment times and lower costs than supplies from server vendors, as well as completely customized designs, second-tier Internet service operators, telecom carriers and large enterprises are likely to adopt it, the sources said.
Quanta Computer is the largest direct-account supplier among Taiwan server ODMs, with the corresponding shipment proportion rising from about 60% in 2012 to 85% in 2013, and expected to further rise to 92% in 2014, the sources indicated. Unlike Quanta, Wistron has maintained ODM production and set up a wholly-owned subsidiary, Wiwynn, specifically for competing for direct-account orders.
Article translated by Adam Hwang
