PatternForce signifies that, so as to increase the presence of their respective ecosystems within the cloud companies market, the aforementioned three CSPs have begun collaborating with varied nations’ home CSPs and telecom operators in compliance with information residency and information sovereignty rules. For occasion, because of the accelerating information transformation efforts happening within the APAC areas, Google is ramping up its provide chain methods for 2021. As a part of Google’s efforts at constructing out and refreshing its information facilities, not solely is the corporate stocking up on extra weeks’ price of reminiscence merchandise, but it surely has additionally been growing its server orders since 4Q20, in flip main its ODM companions to increase their SMT capacities. As for AWS, the corporate has benefitted from actions pushed by the post-pandemic new regular, together with WFH and enterprise cloud migrations, each of that are main sources of information consumption for AWS’ public cloud.
Conversely, Microsoft Azure will undertake a comparatively extra cautious and conservative strategy to server procurement, possible as a result of the Ice Lake-based server platforms used to energy Azure companies have but to enter mass manufacturing. In different phrases, solely after these Ice Lake servers enter mass manufacturing will Microsoft possible ramp up its server procurement in 2H21, throughout which PatternForce expects Microsoft’s peak server demand to happen, leading to a 10-15% YoY development in server procurement for the whole thing of 2021. Finally, in comparison with its three rivals, Facebook will expertise a comparatively extra secure development in server procurement owing to 2 components. First, the implementation of GDPR within the EU and the resultant information sovereignty implications imply that information gathered on EU residents are actually topic to their respective nation’s authorized rules, and due to this fact extra servers are actually required to maintain up the home information processing and storage wants that come up from the GDPR. Secondly, most servers utilized by Facebook are customized spec’ed to the corporate’s necessities, and Facebook’s server wants are accordingly larger than its rivals’. As such, PatternForce forecasts a double-digit YoY development in Facebook’s server procurement this yr.
Chinese CSPs are restricted of their tempo of expansions, whereas Tencent stands out with a 10% YoY improve in server demand
On the opposite hand, Chinese CSPs are anticipated to be comparatively weak when it comes to server demand this yr on account of their comparatively restricted tempo of growth and repair areas. Case in level, Alicloud is at present planning to acquire the identical quantity of servers because it did final yr, and the corporate will ramp up its server procurement going ahead solely after the Chinese authorities implements its new infrastructure insurance policies. Tencent, which is the opposite dominant Chinese CSP, will profit from elevated industrial actions from home on-line service platforms, together with JD, Meituan, and Kuaishou, and due to this fact expertise a corresponding development in its server colocation enterprise; Tencent’s demand for servers this yr is predicted to extend by about 10% YoY….
