Is China Hurting U.S. Vendors?

Shipments of servers from Chinese vendors grew at a rapid pace while the top server vendors in the U.S. declined during the first quarter of this year.

Worldwide server shipments were 2.3 million units during the first quarter, growing by just 1.4 percent compared to the same quarter last year, according to Gartner.

Growth was driven by Chinese server vendors Huawei and Inspur Electronics, which were ranked fourth and fifth, respectively, behind the declining Hewlett-Packard, Dell and IBM.

Huawei has been in the top five for server shipments for more than a year, but Inspur Electronics is a new entrant. Inspur builds blade servers, rack servers and supercomputers, and is best known for being involved in the construction of China’s Tianhe-2, which is currently the world’s fastest supercomputer, according to Top500.org.

Chinese servers partly benefitted from the 18 percent shipment growth in the Asia-Pacific region, while shipments in other regions declined, Gartner said in a statement.

Server buying trends have changed in recent years. Companies like Facebook, Google and Amazon, which buy servers by the thousands, are bypassing established server makers and purchasing hardware directly from manufacturers like Quanta and Inventec. That trend in part led to the establishment of the Open Compute Project, a Facebook-led organization that provides server reference designs so companies can design data-center hardware in-house.

Similarly, Chinese cloud providers are building mega data centers and buying servers from local vendors instead of going to the big name brands, said Patrick Moorhead, analyst with Moor Insights and Strategy.

The trend of buying locally is partly due to the security tension between the U.S. and China, but servers from Chinese companies are also cheaper, Moorhead said.

The enterprise infrastructure is also being built out in China, resulting in a big demand for servers. There is also a growing demand for servers from little-known vendors based in Asia — also known as “white box” vendors — in other regions, Moorhead said.

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Japan Takes 1st Place On Supercomputer List

A Japanese computer has earned the number one spot on the Top 500 supercomputer list, ending China’s short reign of just six months. At 8.16 petaflops (quadrillion floating-point calculations per second), the K computer is more powerful than the next five systems combined.

The K computer’s performance was measured using 68,544 SPARC64 VIIIfx CPUs each with eight cores, for a total of 548,352 cores, almost twice as many as any other system on the Top500 list. The computer is still being put together, and when it enters service in November 2012 will have more than 80,000 SPARC64 VIIIfx CPUs according to its manufacturer, Fujitsu.

Japan’s ascension to the top means that the Chinese Tianhe-1A supercomputer, which took the number 1 position in November last year, is now in second spot with its 2.57 petaflops. But China continues to grow the number of systems it has on the list, up from 42 to 62 systems. The change at the top also means that Jaguar, built for the U.S. Department of Energy (DOE), is bumped down to third place.

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