Server vendors Hewlett-Packard (HP) and Dell, in view of the unfavorable situation created by Google, Facebook, Amazon, Microsoft and others directly ordering data center equipment from ODMs/OEMs, have begun talks with suppliers about cooperation to minimize the impact, according to Taiwan-based server supply chain makers.

　　The practice of direct-account supply of servers, storage equipment and networking devices for cloud computing applications is gaining momentum because prices are significantly lower than those quoted by international vendors and products can be customized, the sources pointed out.

　　For the time being, direct-account suppliers may not be willing to cooperate with HP and Dell, the sources indicated. However, when demand from existing direct-account clients begins to decrease, the main sources of orders be companies looking to establish their private clouds, the sources said. Since these firms generally prefer servers from international vendors, ODMs/OEMs will then be willing to talk with HP and Dell, the sources said.