Category: Opinions

How the big boys killed Google and Apple’s TV

Posted on March 8, 2013 by - News, Opinions

5d5ff59c-434d-11e2-989b-12313d1f5c43About a year ago you could not read anything in the tech press about how the big names were pressing into the telly industry.

Google and Apple were all outed as being likely to become big players. Their channel partners waited, after all there was some big dosh to be made in joint operations, and suddenly there was nothing.

Google pulled off a big “oh look a badger” and started talking about Google Glass while Apple instructed its Tame Apple Press to start writing meaningless pieces about watches instead.
So what happened to the television being the cure for Apple and Google’s woes?

According to Forbes it was some dark satanic practices being carried out behind closed doors in the Far East.

But in the old days control the TV meant you might also control other household functions, like remote control of the air conditioning. Microsoft was early into TV operating systems for that reason.

Its logic is that the TV market is owned by Korean manufacturers and in particular Samsung, and by LG and they are making their plans grander by the minute.

LG recently bought WebOs from HP, specifically for use in smart TVs while Samsung already has a smart TV project that has sucked up developers of iOS, Windows and Android.

For Apple and Google to get into this market they have to do something pretty sexy in a channel where they are an innocent Shirley Temple doing a rounding redition of “good ship lollypop” before a convent of Nuns.

Apple looked at the competition, saw how good it was, and thought “Nah lets stick to making toys.” Google on the otherhand has been a bit more shifty.

The Web OS purchase was bad news for Google TV, but it exposed the extent of Google’s plans. In the beginning the company courted a number of big TV manufacturers for Google TV, with the idea of having the system embedded in a wide variety of TV sets.

It spoke to Sony, which was one of the first to make Google TVs, LG came on board for the second generation, and Samsung seemed to be ready to go Google as well by early 2012.

However a year afterwards Samsung’s Google TV never materialised and Sony stopped selling and now, LG is buying its own smart TV operating system. This means that Google is stuck to a companion box and is snookered.

So why have the big players gone all Altair’ on Google? It appears that it might not be Google, but the operating system that it runs on which has the big Asian names miffed.

For a while now there has been muttering that Android has become too powerful. The moaning has not just come from the Chinese Government, which is looking to build its own Red Friendly operating system, but Google’s partners too.

Some of that was Google’s fault, in buying Motorola, but there are some other reasons too. The first is that many are terrified of returning to a situation where one operating system has control over the market. Although Android is Open Source it still operates at the will of Google.

What is starting to look possible is that Samsung could use Tizen and LG will use Web OS.
The interesting point here that recently Intel revealed its TV plans. It is coming in late, and really few people will care, but it looks like it means that it will not only have to do it without Samsung or LG. True it could run its TV on WebOs or Tizen but that is not normally its style. It probably thought it could come in with Android and everything would be home and hosed. Only it wasn’t.

HTC struggles to stay afloat despite top notch products

Posted on March 7, 2013 by - Opinions, Products

htc-quietly-going-underHTC was one of the first smartphone makers to cash in on the Android craze a couple of years ago, but the good times are long gone and if its fortunes don’t turn around soon, it might be up for sale, or worse.

Back in 2010 and the first half of 2011, HTC was the darling of tech hacks and investors alike. It was posting strong sales, with triple digit revenue growth for four consecutive quarters. However, it has been downhill ever since.

On Wednesday HTC announced that its sales in February dropped a whopping 44 per cent year-on-year and 27 per cent compared to January. At the moment, HTC’s market cap is roughly one fifth of what it was in mid-2011.

So what on earth went wrong, and what led to HTC’s annus horribilis last year?

It wasn’t the products. Last year HTC decided to focus on fewer phones, which seemed like a logical step for a small outfit, as it could allocate its resources more efficiently and turn itself into an upmarket brand. The resulting One series phones got stellar reviews, but the positive vibe did not result in strong sales. HTC’s flagship One X featured a better screen than its arch nemesis, the Samsung Galaxy S3. It also looked a bit nicer and its build quality was vastly superior. In terms of hardware and software, it was on a par with Samsung’s S3 juggernaut. The same is true of other HTC phones.

For years HTC was viewed as a geeky smartphone brand with excellent but somewhat dull products. It tried to shake off this perception by introducing a bit more flare to its smartphone designs and then there was the ill-conceived Beats Audio deal. Clearly, it didn’t help. Worse, Samsung’s approach of flooding the market with countless Galaxy models worked like a charm. Instead of diluting the Galaxy brand with cheap, plasticky phones, Samsung managed to get more brand recognition than Google’s Android OS. Galaxy has become synonymous with Android, and then some.

HTC’s new flagship, dubbed One sans suffix, is already getting great reviews. It features a 4.7-inch 1080p display, Qualcomm’s Snapdragon 600 processor, which is the fastest currently available mobile chipset, along with an innovative Ultrapixel camera and a new dual-membrane microphone. It ticks all the right boxes and should be able to take on anything Samsung, LG or Sony could throw at it.

Sadly though, that is not enough. HTC simply can’t sell its gear or get its message across. It lacks the resources of consumer electronics giants, so it can’t market its products as effectively and it can’t get sweetheart carrier deals like big players. What’s more, smartphones have already gone mainstream and HTC simply lacks the brand recognition of more consumerish brands. Geeks might love HTC phones, they can get very positive reviews, but mainstream consumers just don’t care. They don’t read tech sites and they buy Samsungs instead.

So although HTC pioneered Android phones and although it still has excellent products, it could get the unflattering distinction of being the first Android smartphone maker to go out of business, in the middle of a mobile boom and with very little fault of its own.

Microsoft Windows 8 OEM prices may drop in UK

Posted on March 6, 2013 by - Interviews, News, Opinions

Windows-8Despite claims that Microsoft is planning to offer discounts on Windows 8 OEM prices over in Taiwan, disties and resellers have said that they have not seen the same happening in the UK.

However, they have hinted that if the rumours are correct, there could be a knock on effect on UK sales later on in the year.

The comments come as DigiTimes reported that Microsoft would lower OEM licensing costs by offering a discount of $20 for 11.6-inch and below notebooks that are equipped with touch screens.

Sources and vendors said this was because Windows had fallen short of expectations in driving demand mainly because its notebooks and tablets were too expensive

For below 10.8-inch notebooks, tablets and hybrids, Microsoft  is said to offer the $20 discount plus free Office 2013 software, from the beginning of April, while retail prices for 11.6-inch touchscreen Windows 8 notebooks were expected to be reduced beginning June to reflect the discount.

However, a big distie who works closely with Microsoft in the UK said that it had not seen evidence of this.

“We haven’t heard of any reductions but we can confirm that these are failing to shift,” he told ChannelEye.

“I suppose if the news is coming from the Far East we can expect to see similar announcements in the next few weeks/months.

“These sources are rarely wrong and it would make sense given the way these products are failing to fly off the shelves.”

One reseller was less convinced, telling ChannelEye: “Sales are slow but I don’t think they are at a pace to send Microsoft into a price slashing frenzy just yet.

“It’s invested a lot of money in these products as well as us, its resellers, so it’s going to hold out. Of course that puts pressure on us to sell, but c’est la vie.”

Windows 8 fails to woo people’s hearts and minds

Posted on March 4, 2013 by - News, Opinions

msNobody expected Windows 8 to have a huge impact on the sluggish PC market, but now it seems that things could be a bit worse than Redmond would have us believe.

According to monthly statistics from NetMarketShare, sales of Windows 8 are not picking up much speed. In fact, in February Windows 8 ranked behind XP and Windows 7, with 38.99 per cent and 44.55 per cent share respectively.

At 2.76 per cent of web traffic, Windows 8 is even trailing behind Vista, one of Microsoft’s biggest lemons, which is still terrorising 5.17 percent of PC users.

The share of Windows 8 PCs on the web saw very little growth, just 0.41 percent from January, when it commanded a 2.26 percent share. In December the share was 1.72 percent.

The trend must be raising some eyebrows at Redmond, but there doesn’t seem to be much anyone can do to speed up Windows 8 adoption now. Although cutting the price is always an option, it would probably result in a brief spike, followed by plenty of angry questions from shareholders.

A quick glance at a couple of European price search engines reveals a relatively high number of Windows 7 desktops and laptops in practically every market segment, although Windows 8 is gaining a lot more traction in the high end and in Ultrabooks. However, volumes are what matter, as the same OS ships with a £1,000 Ultrabook and a dirt cheap 15-incher. Speaking of the latter, thousands of 15.6-inch and 16-inch laptops are still listed as shipping with Windows 7. Many of them can be upgraded to Windows 8 at no cost, but then again plenty can’t.

Holiday PC sales failed to impress and it appears that there are tons of early- to mid-2012 Windows 7 laptops and desktops in the channel. In fact, out of a few thousand 15-inchers listed at Skinflint, just 183 SKUs ship with Windows 8 Pro and 578 with Windows 8. However, 1396 SKUs are shipped with Windows 7 in four distinct flavours. The trend is even more evident on the continent.

At this rate, it will take a few quarters to get rid of Windows 7 inventory. In addition, very few consumers seem to be upgrading their existing PCs to Windows 8, despite the fact that the vast majority of Windows 7 PCs will easily run the new OS. In fact, most will end up even faster, without any hardware upgrades. However, money is tight and few people are willing to upgrade their operating system, especially as Windows 8 doesn’t bring a whole lot of headline features to the table.

Europe to binge on cheap tablets

Posted on March 1, 2013 by - News, Opinions

nexus7The tablet boom is still going strong and according to Forrester Research, plenty of growth is expected over the next few years. Tablet ownership in Europe is expected to quadruple by 2017.

At the moment, an estimated 14 percent of European online consumers own a tablet, and the number should hit 55 percent by 2017. But who stands to gain from the boom?

Can HP clean up its channel conflict act?

Posted on March 1, 2013 by - News, Opinions

clean_up_after_yourselfThe maker of expensive printer ink HP has fast discovered the problems of hacking off the Channel.

For a number of years now, HP has had a problem in that its direct-selling sales teams have been nicking deals from their channel partners. While this has been good for the company in the short term, it has led some resellers to wonder why they should line up deals, when HP would just nick them from underneath them.

We reported on HP’s channel conference here, and here.

Unsure if it was going to keep its hardware business, HP did not seem that keen to tackle the problem. After all if Leo Apotheker’s plan paid off, then there was little reason to care about hardware partners, as they were going to be dealing with a new business, who would presumably be kinder.

As a result hardware sales dropped, in part because of the lack of morale of HP’s hardware partners. More than 70 percent of HP’s sales are delivered through its channel.

All that changed when the new CEO and president Meg Whitman decided to keep HP’s hardware business. She realised that without a fully functioning channel, the whole business was rubbish.
She ordered the company to develop better rules of engagement for HP’s direct sales team which did not step on the toes of the channel.

Speaking to the recent Global Partner Conference, Whitman said that partners had “literally built” HP’s business over the years, and she warned that any move which took business away from the HP channel and going direct would not be tolerated.

“Everyone in the HP organisation is crystal clear on the behaviour we expect. I am holding myself and the executives accountable for that,” she added.

But that did not mean that HP was going to close down its direct sales operations. Indeed the rules that Whiteman has been pushing forward might be hard to implement.

Her view was there are accounts that HP will take direct, but there must be “no mystery” in the process, and that partners who have done months of work on a deal will be paid even if transacted by HP.

The agreement basically makes a few pledges. Partners are not restricted from selling to anyone but the bigger accounts still have to involve an HP field rep.

HP has promised to leave the midmarket to the channel which which is a significant change.
The company’s opportunity registration policies are being used to govern behaviour. If HP accepts a partner’s registration, the company will not sell direct on that opportunity.

HP has set up a “value express pricing” programme, where HP channel partners will be rewarded for the value they provide.

It also has promised for there to be mandatory training on the new rules.

While this sounds good, it is hardly tangible. Under what circumstances would HP take a customer away from its channel partner? How much work would have to be done before a partner got paid?
In fact it might also be difficult for HP to fire sales staff that do pinch deals from partners. While they may be breaking HP’s policies, they are not breaking any laws. Sales teams are not famous being open to what they perceive as rivals when they are looking for commissions.

The only way a channel deal can be protected is if they are go for certifications and will use registration. This makes the deal more open, but it also makes it vulnerable to gazumping by HP’s internal teams.

As Jack Mele, vice president of sales at Data Impressions pointed out, it will only work if the Whiteman’s corporate edict trickles down the way it should.

However it is better than nothing, according to Search IT Channel,  many in HP’s channel welcomed the change. Craig Sehi, of Sehi Computer Products said that HP’s new “rules of engagement,” were a welcome relief and was sign that HP is listening to its resellers.

But it is clear that HP has a long way to go before it can calm its jittery channel and get them working together.

Heavyweights hug mobile payments, but more work ahead

Posted on March 1, 2013 by - News, Opinions

google-walletA series of optimistic reports and forecasts on e-commerce seems to indicate that mobile payments are becoming increasingly commonplace and that we could soon ditch our trusty leather wallets in favour of smartphones. Sadly though, we won’t, at least not anytime soon.

The trend is positive and we are seeing a lot of growth, especially in m-commerce. In addition, a number of big players have made significant announcements in recent months. Last week Visa expanded its Visa Ready Partner Programme in an effort to get more vendors, developers and retailers on board. Samsung followed up with a service of its own, the Samsung Wallet, which bears more than a passing resemblance to Apple’s Passbook app. Samsung already managed to attract several partners for its new service, including Visa.

Then there is MasterCard’s MasterPass service, which allows retailers come up with their own applications and services, based on MasterCard’s infrastructure. PayPal is no newcomer to the market, but its PayPal Here service is. Launched in the US last year, it finally found its way across the pond to European shores. It offers a comprehensive solution, with a hardware dongle and cross-platform app support, and it allows users to pay using credit cards, cash, PayPall wallet or checks.

What about the elephant in the room? Well, there’s actually two elephants. Google Wallet has been around for quite a while, but it failed to take off. It was supposed to demonstrate NFC capabilities on Nexus gear, dating back to the Nexus S, which it did. However, much like NFC, Google Wallet never made much of a name for itself.

It might have something to do with the second elephant, Apple, as it never embraced NFC technology and it is still unclear whether the next iPhone will feature it. Apple has not made much noise on the mobile payment front, which doesn’t mean it is not looking into it. To the contrary, Apple has already filed several patents for NFC enabled devices and services. Cupertino doesn’t like spilling the beans on upcoming products and services, and unlike some companies, it tends to have excellent execution. It is also worth noting that Apple bought AuthenTec, a maker of fingerprint sensors and security solutions, for $356 million last year.

With all that in mind, nobody should be surprised by soaring m-commerce and mobile payments statistics. In fact, we should be seeing even more services, from brick and mortar shops to pubs, but we aren’t. Mobile payments and are still geeky turf, with little traction among mainstream consumers. The sheer lack of widespread support for m-commerce platforms and the fast pace of development means that many consumers don’t even know it exists. What’s more, many of those that do still have some reservations.

Privacy and security are valid concerns, but a recent survey by Intela revealed that the majority of smartphone users in the UK now feel comfortable with mobile payments. It is hardly surprising, as most smartphone users have grown accustomed to making micro transactions in app stores or through in-app payments. The difference between spending a few pence on an app and a few pounds in a retail shop is philosophical and not technical in nature. In fact, it appears that humble micro transactions have already done more for m-commerce confidence than all the fancy services rolled out by credit card companies and tech outfits.

In spite of that, smartphones will not replace wallets, at least not entirely and certainly not anytime soon. Cash can’t be hacked, it can’t be rendered useless by a flat battery or a few drops of lager. In some cases it is just more practical. The same pretty much goes for credit cards. Smartphones have their own set of advantages. Motorway tolls, public transportation, congestion charges and parking based on GPS information are some that come to mind. Phones are an excellent payment platform, but they will complement cash and cards, not replace them.

Microsoft: resellers coming around to cloud

Posted on February 28, 2013 by - News, Opinions

clouds3Traditional resellers have been slow in embracing the cloud, with many predicting the technology was “just a hype,” a Microsoft spokesperson has told ChannelEye.

However, according to Clare Barclay, director of SMB at the company, two years later resellers are embracing market changes.

“Traditional resellers are in a competitive market with younger companies evolving far quicker,” she told ChannelEye. “Two years ago they put Cloud down to just a hype and continued with their business as it was. However, they are now changing.”

Microsoft believes cloud has changed the way resellers and the market operates, eliminating the need for cumbersome software and hardware. Savvy SMBs have also set up their business using this technology to make them appear bigger and offer their customers more services.

“Most SMBs have now realised that they need to capitalise on cloud, and offer services that put them in a position with their competitors,” said Barclay.

She also pointed out that Office 365 was enabling the company’s partners to offer more services to their customers.

“Three to four years ago customers were worried about buying into a cloud based model but now this is aggressively growing we’re seeing a number of partner engaging in monthly based subscriptions,” she said.

Microsoft said it is trying to seduce resellers into cloud confidence by offering training and events programmes to outline the benefits.

20 shops close a day and it’s getting worse

Posted on February 28, 2013 by - News, Opinions

highstreetRetail chains in Britain closed an average of 20 stores a day over the past year. According to a report by the Local Data Company and PwC, the number of shop closures in 2012 soared tenfold on the year before.

It makes for some depressing reading to say the least. The survey found that 1,779 stores were closed in 2012, compared to just 174 in 2011.

The downturn seems to be affecting every sector, from travel agents and sports goods shops, to banks, computer game shops and jewellers. However, some businesses seem to have bucked the trend, including charity shops, pawnbrokers, pound shops, betting shops and payday loan companies, basically all the services people are likely to use when they are broke like Greece and out of work like Spanish youths.

It gets worse. The number of closures is predicted to rise and the rate of closures in December, January and February is up and could hit 28 a day. Many companies are falling into administration, including former heavyweights like HMV. Blockbuster, Jessops and Comet are down and out as well.

Mike Jervis, insolvency partner and retail specialist at PwC believes the downward trend is getting even worse in 2013.

“2012 saw more retail chains go into insolvency than ever before. The failed chains generally shared two problems- too many stores and too little multi-channel activity,” he said. “A number of them had failed to deal with their underlying issues by hiding behind light touch restructuring processes, especially Company Voluntary Arrangements.”

Christine Cross, chief retail adviser to PwC, said the figures are more disappointing than many had hoped, but she pointed out that several major chains were forced to resort to closures and this was anticipated for a long time.

“What is surprising is the speed at which stores have been picked up by value and grocery retailers in particular. Good businesses with good operating models and good people don’t fail,” she said.

Although closures are up across the board, some regions have taken a bigger hit than others. The South East leads the way with 376 closures, 265 shops closed their doors in West Midlands and the North West saw 215 closures. The North East, Scotland, Yorkshire and the Humber stayed in double digits.

Google starts to recruit resellers against Amazon Cloud

Posted on February 26, 2013 by - News, Opinions

cloud 2Google and Amazon have been scrapping it out for dominance of the skies, but now it seems that the search engine Zeppelin may be trying to recruit resellers to help out.

According to Gigaom,  Google has signed up its first reseller, a company called RightScale, which is offering a “cloud management platform”.

It helps an enterprise automate routine tasks, monitor usage and monthly costs, and control security options.

As a reseller RightScale works with other major providers of Internet-delivered computing power and storage, including Amazon, RackSpace, HP Cloud, and Windows Azure. But its products have always worked with Compute Engine since Google launched the cloud service in June.

What this means is that Google has finally woken up and realised that its enterprise customers not only need someone to sell them the products, but also hold their hands if something goes tits up.
One of the difficulties that Google has had is that the company is so big, that getting information on its products, particularly when something goes wrong, is difficult.

But there are some elements of self-protection here. This partnership announcement comes a week after Amazon launched a new service called OpsWorks, which competes with RightScale. This means that by having resellers Google and the reseller can protect each other from the Amazon juggernaut.

In the long term Google will probably do better than Amazon. It has a lot more experience running Apps on the Cloud, and soon its products will be faster and cheaper but this announcement is a reminder that even super-companies like Google need resellers to get their products out there.
Google is also the new kid on the block and many corporate customers will not be aware that it is out there yet. Having a reseller pushing product is one way of raising the profile.

Posh hotels gouge guests for Wi-Fi

Posted on February 26, 2013 by - News, Opinions

hotel-roomIt is no secret that free Wi-Fi is good for business, so it is available practically everywhere, from pubs and service stations, to public institutions.

However, it is still not available in most hotels and according to a survey carried out by travel site Gogobot, posh hotels are still charging an arm and a leg for a bit of Wi-Fi.

On the face of it, there is nothing wrong with charging a few pounds for unlimited Wi-Fi, but the survey also confirms another angle – the pricier the hotel, the pricier the Wi-Fi. It is cheeky, to say the least.

Gogobot’s survey of UK hotels revealed that some establishments, such as the Hilton, charge as much as £15 per day. Smaller boutique or independent hotels are cheaper and some offer free Wi-Fi, while others charge up to £5 and £8 per day. It doesn’t sound like too much, but the cost can quickly add up in a matter of days and it is obvious that frequent travellers (or their employers) could end up wasting hundreds of pounds on overpriced Wi-Fi over the course of a single year.

What’s more, the survey found that Wi-Fi access was at times spotty and unreliable, reports Mashable. Quality remains a problem, no matter how much you pay.

“There is no correlation between the amount you pay and the quality you get,” Kelly Lees, general manager in Europe said. She argued that tetherless travel is here to stay and the days of connecting to the internet using Ethernet in hotels are “long gone”.

However, things could be about to change. Lees says Wi-Fi prices are starting to affect hotel ratings. Travellers who believe they were ripped off on Wi-Fi will not give hotels a five-star rating. In addition, the availability of low cost 3G/4G services could make hotel Wi-Fi as obsolete as Ethernet, unless hotels finally realize that they stand to gain more by offering free Wi-Fi rather than making their guests pay through the nose for every byte consumed on business trips.

Intel Ultrabooks are the “Titanic of the 21st Century”

Posted on February 25, 2013 by - News, Opinions

Der Untergang der TitanicResellers have lit into Intel Ultrabooks likening the range to the “the Titanic of the 21st Century,” and calling the products a “sinking expense.”

The comments come as resellers are still seeing bleak sales  for  these products, with some saying they can’t see a light at the end of the dismal tunnel.

Intel’s slim line babies had been touted as a lighter way to work, however, according to recent research by IDC, the company’s emphasis on its skinny form factor did it no favours as the price tag is still sky high.

However, it seems the stubbornness of the company, and its reluctance to cut prices, have angered resellers.

“Ultrabooks have really been the Titanic of the 21st Century. A disaster, and sinking expense,” one told ChannelEye today.

“It seems to me that whatever Intel does, and however much it throws at this brand, it’s just not going to take off unless it reduces prices for these ranges significantly.

“However what we’ve heard from the company hints that this isn’t going to happen, meaning we’ll once again be left with surplus stock and low margins as a result.”

Others agreed, claiming that the price point was the thorn in Intel’s side.

“Ultrabooks still aren’t doing as well as we would have liked. No one wants an overpriced laptop at the moment and the slim USP it’s got going on just isn’t attracting consumers,” another reseller told ChannelEye.

“There are cheaper, but bigger laptops that offer similar features that just make purchases more justified.”

Others have also pointed out that although the company could cash in on the upcoming holidays, consumers again would be reluctant to opt for this product with tablets offering a better price point.

“We’re hoping to see a rise in Ultrabook sales as the summer holidays come around, but it’s market. Some families who are going away will be looking for a light device that can keep kids occupied on a plane as well as act as a virtual mag/book.

“Although an Ultrabook would be perfect for this, the reality is the price points will push many to a tablet,” he added.

Taiwanese server makers take on traditional OEMs

Posted on February 14, 2013 by - News, Opinions

server-racksThe server market has been dominated by the same players for years, but times are changing and Taiwanese outfits are aggressively entering the lucrative market.

Talking to EEtimes, Quanta cloud computing group general manager Mike Yang pointed out that Taiwanese companies are ramping up production of servers, switches and storage systems. The trend threatens to undermine the position of traditional OEMs.

“Traditional OEMs no longer have the advantage, we do,” said Yang. “The business model is changing and it provides us a very good opportunity.”

It could be said that Quanta entered the server market by accident. Five years ago it landed a sizeable contract from Facebook, which prompted the company to rethink its approach to the server market. Yang said the deal had a big impact on Quanta and it was quite surprising, as the company usually only provided precuts to OEMs.

But Facebook is not alone and Big Data is showing a lot of interest in Taiwan. Google and Microsoft also realised they could easily tap Taiwanese companies to build custom designed server suited for their needs. Two years after the Facebook deal, Korea Telecom also approached Quanta to build server racks.

“We asked them why they came to us, and they said they heard we were doing business with several of the biggest data centers in the world,” Yang said.

It did not take Quanta long to realise that it could cut out the middleman and sell its gear directly. Last year Quanta officially created its data centre group and it is pursuing the market more proactively. However, the company is playing both sides and it is still building servers for OEMs like  Dell and HP.

Quanta is not alone and one of its chief rivals is Wistron, a former arm of Acer that makes PCs for OEMs. Wistron is now getting orders for racks and last year it launched a spinoff called WiWynn to handle the data centre business and prevent possible conflicts of interest with OEM clients.