The China government started changing procurement policies in the second half to help nurture local cloud computing players. The change is expected to impact first-tier brand vendors such as Hewlett-Packard (HP), Dell and IBM.
In the past, the China government or China-based enterprises had no specific preferences over their hardware procurement, but in the second half, most of them started demanding only products or components made by China-based suppliers, and refuse to use products from non-China vendors.
China-based Internet players Baidu, Tencent and Alibaba have also been pushing together their own cloud computing solutions and are aiming to invite China-based component makers to join the supply chain.
Lenovo's joint venture with the largest storage solution provider EMC is also helping the China-based vendor to quickly raise its market share in China's server market.
Although Taiwan ODMs still have a technology lead of about 1-2 quarters over China-based makers, the advantage may not keep Taiwan's ODMs ahead for long unless Taiwan ODMs continue to come up with new technologies.
With non-China server brand vendors already being neglect by China's enterprises and the government, Taiwan players are also in danger of being pushed out of China's cloud computing industry in the future.