Qualcomm wants to enter the server market, but it won’t do it alone, and will tap expertise in China to build the low-power chips. “We’re going to work with Chinese companies to bring that technology and in fact co-develop that technology with Chinese companies,” said Qualcomm executive chairman Paul Jacobs on Thursday. Jacobs made the comment while speaking at the World Internet Conference in Wuzhen, China. Qualcomm is best known as a maker of smartphone processors based on chip architecture from ARM Holdings, but the company wants to take a crack at the server market, which rival Intel has long dominated.
As users of white-box servers (produced by ODMs and sold directly to clients) mostly need a large number of small-size, low-power and inexpensive models pre-installed with Linux and customized to some extent, white-box servers are mostly rack or micro types instead of towers or blades. The users usually have in-house technical teams to handle their servers’ maintenance and find server brand vendors’ designs limiting their operations; therefore, they have turned to supplies directly from ODMs.
Quanta Computer reportedly has received new orders from Google for servers recently and will start supplying in the first quarter of 2015, according to industry sources. Quanta declined to comment on its orders. Quanta had been the sole server supplier for Google’s databank center before the search engine company switched about 80% of its orders to Inventec in the second half of 2014. Quanta’s new server orders are likely to account for 50% of Google’s total purchases of servers in early 2015, the sources estimated.
A Chinese company has developed the country’s first homegrown servers, built entirely out of domestic technologies including a processor from local chip maker Loongson Technology. China’s Dawning Information Industry, also known as Sugon, has developed a series of four servers using the Loongson 3B processor, the country’s state-run Xinhua News Agency reported Thursday. “Servers are crucial applications in a country’s politics, economy, and information security. We must fully master all these technologies,” Dawning’s vice president Sha Chaoqun was quoted as saying.
Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Super Micro Computer, Incorporated first quarter 2015 conference call. The company’s news release, issued earlier today, is available from its website at http://www.supermicro.com. In addition, during today’s call, the company will refer to a slide presentation that has been made available to participants, which can be accessed in a downloadable PDF format on its website at http://www.supermicro.com in the Investor Relations section under the Events & Presentations tab.
Lenovo has become the biggest x86 server provider in China as its acquisition of IBM’s x86 server business completes. IDC said it believes this acquisition will enrich Lenovo’s x86 server portfolio and strengthen its products and channels. IDC’s latest data on China x86 server market shows, Lenovo shipped 99,101 units in the first half of 2014 and ranked fourth among all vendors in the same category. Combining IBM and Lenovo’s shipments in the period would make Lenovo the biggest vendor in China’s x86 server market with a market share of 23.9%.
To compete for more datacenter server orders, Quanta Computer reportedly will establish a service center in Europe in October, helping its server business to cross North America, Asia and Europe, according to sources from the upstream supply chain. Other Taiwan-based makers such as Wistron, Inventec, Foxconn Electronics (Hon Hai Precision Industry) and Mitac will also strengthen their competitiveness through improving software and services.
China’s X86 server shipments reached 448,000 units, a year-on-year increase of 22.2%; and its server sales reached USD1.43 billion, a year-on-year increase of 34.6%, according to latest statistics from IDC. Statistics from IDC showed that during the second quarter of 2014, the global shipment of X86 servers increased by 1.5% year-on-year to 2.2 million units; while the related sales increased by 7.8% year-on-year to USD9.8 billion.
BEIJING: IBM will help China’s largest server vendor Inspur International design server systems, the two companies said on Friday, an unexpected development in what has been a politically charged rivalry in the Chinese technology market. Since last year Inspur has aggressively marketed its servers to Chinese state-owned firms as a replacement for IBM (International Business Machines Corp) systems while US-China relations have worsened dramatically over mutual suspicions of cyberspying.
While the server market has been growing at a flat rate for several quarters the world over, India and the Asia Pacific region are the only markets showing promise. Market leader HP is betting on India for better prospects in the segment, a top company official said. Growing popularity of cloud computing, virtualisation and big data is boosting the server market in India, where blade servers and micro servers have been major growth drivers.
Quanta Computer has announced revenues of NT$77.93 billion (US$2.6 billion) for July, up 8.53% on month and 8.63% on year with combined revenues for the first seven months of 2014 reaching NT$508.27 billion, up 10.48% on year. Quanta shipped 4.2 million notebooks in July, down from 4.3 million units in June. Despite having a notebook shipment drop, the company still managed to achieve a revenue growth in July mainly thanks to a better product mix and contributions from non-notebook product lines, estimated some market watchers, adding that Apple’s increased orders for Mac series products also benefited Quanta’s revenues recently.
Power supply maker and energy management solution provider Delta Electronics has posted gross margin of 27.43% and net profit of NT$5.264 billion (US$176 million) for second-quarter 2014, with both hitting the highest ever on company record. Of second-quarter consolidated revenues, 60% came from power supplies and components, 19% from energy management devices and smart green life products each, and 2% from others.
Taiwan-based server ODMs including Quanta Computer, Wistron and Inventec may obtain orders arising from the beginning of Project Scorpio 2.0, the second version of a project to boost low-cost and highly scalable data center infrastructure jointly by China-based Internet service operators Baidu, Alibaba and Tencent through collaboration with Intel, in September 2014, according to Taiwan-based supply chain makers.
Asustek Computer’s competition with Gigabyte Technology over the motherboard business is growing fiercer as the two firms’ shipment gap will only be 100,000 units, according to sources from channel retailers. Asustek shipped 10.4 million motherboards and Gigabyte 10.3 million units in the first half of 2014.
Shipments of x86 servers in the China market during the first quarter of 2014 totaled 350,000 units, up 22.9% on year. Meanwhile, factory revenues of x86 servers during the quarter reached US$1.07 billion, growing 24.5% on year. “China’s x86 server market has seen steady growth, driven by the continuous investment of Internet companies in infrastructure as well as the emerging demands of the traditional IT enterprises for local products. The gap between domestic vendors and leading MNC vendors is narrowing down,” said Eric Peng, research manager with IDC China.
Upstream component suppliers such as Intel and hard disc drive (HDD) makers, have started providing support to white-box server players such as Taiwan-based ODMs and the strategy is expected to significantly raise white-box server players’ R&D and cost management ability, according to sources from the upstream supply chain.
Quanta Computer’s white-box server subsidiary is planning to establish new branches in Hangzhou and Shenzhen, China to tighten its partnerships with China-based Internet players Alibaba and Tencent, while Wistron has cooperated with industrial PC (IPC) player Arbor Technology to seek Internet of things (IoT) business opportunities.
As China and the US dispute over the stealing of confidential information through the Internet, China has launched counter attacks to reject server products from IBM, Oracle and Cisco and the situation is expected to benefit Taiwan server-related players, according to sources from server players.
Supermicro Computer, a global leader in high-performance, high-efficiency server, storage technology and green computing, has continued to expand its server and storage rack solutions amid increased demand for highly scalable, energy efficient and environmentally friendly solutions for data center, cloud and enterprise IT environments.
ASRock Rack, a server subsidiary of ASRock, is expected to achieve break-even operations by the fourth quarter of 2014 and start earning profits in the first quarter of 2015. ASRock Rack has already landed orders from clients in Europe, North America and Southeast Asia and will start shipping orders later in 2014, the market watchers noted.