Alphabet Inc. (NASDAQ:GOOGL) made a name for itself online, by building one of the largest computer network that spans almost every country in the world. With the massive network, the tech giant has been able to deliver internet services, to billions of people around the world. Of notice is the fact that the tech giant build the massive network without the help of hardware suppliers of the likes of Cisco Systems, Inc. (NASDAQ:CSCO), Hewlett-Packard Enterprise Co (NYSE:HPE), Dell and the rest.
Google opted to design its hardware from scratch without invoking the help of Cisco Systems, Inc. (NASDAQ:CSCO) and Hewlett-Packard Enterprise Co (NYSE:HPE). Cost and desire to grow the network as fast as possible played a key role in the tech giant shunning hardware provided by the two. Traditional gear from traditional suppliers tends to be a bit expensive and entirely difficult to manage. In a world where customization is a must the tech giant had to go all out, on its own.
Facebook Inc (NASDAQ:FB) seems to have learnt a lesson or two from Google’s model of designing its hardware. As the social network started to expand to millions of people, so did it start to design its own hardware, giving rise to the nonprofit Open Compute Project. The initiative has allowed the company to open source a good number of the designs thus accelerate their development.
Open Sourcing Hardware Designs
Other companies are now able to access various designs on Open Compute Project, improve them, and most importantly drive their cost down through mass production. The likes of Apple Inc. (NASDAQ:AAPL) Microsoft Corporation (NASDAQ:MSFT) and Rackspace have already leveraged the benefits open sourced designs. It is a move that has not gone well with the likes of Cisco Systems, Inc. (NASDAQ:CSCO) and Hewlett-Packard Enterprise Co (NYSE:HPE) whose hardware continue to attract little demand as a result.
Wireless companies have already noticed the benefits that come with leveraging open sourced designs. AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), Germany’s Deutsche Telecom, and South Korea SK Telecom are the latest companies to join the Open Compute Project. Through a sub project on the initiative, the wireless companies hope to explore open source servers as well as networking equipment that can help drive their cost of operations lower while boosting efficiency levels.
Wireless companies joining the Open Compute Project could signal a shift from traditional data center gear. Such a shift is not good news as it undermines the likes of Cisco Systems, Inc. (NASDAQ:CSCO) and Hewlett-Packard Enterprise Co (NYSE:HPE) when it comes to hardware sales.
