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Google, Amazon, Microsoft Go East For Network Gear 88

theodp writes "Wired's Cade Metz has the scoop on the move away from U.S. network equipment stalwarts, calling it of the best-kept secrets in Silicon Valley. 'Cloud computing is an arms race,' writes Metz. 'The biggest web companies on earth are competing to see who can deliver their services to the most people in the shortest amount of time at the lowest cost. And the cheapest arms come straight from Asia.' Or, as Joyent's Howard Wu puts it, 'It's kind of like buying couches. If you buy one, you go to a retail store. If you buy 10,000 couches, you go straight to the factory.'"
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Google, Amazon, Microsoft Go East For Network Gear

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  • wow.. really? (Score:5, Insightful)

    by rgbrenner ( 317308 ) on Sunday April 01, 2012 @05:22PM (#39543403)

    Wow.. really? Huge multinational companies are buying equipment from developing countries because it's cheaper?! What is the world coming to?

  • by Anonymous Coward on Sunday April 01, 2012 @05:26PM (#39543435)

    Not Eastern, just China. They've been known to do it, and they'll do it again. You think Australia refused to let Huawei bid because they found the company's logo unpleasant?

  • by mbkennel ( 97636 ) on Sunday April 01, 2012 @05:36PM (#39543517)

    No, it is not possible to inspect hardware at that level sufficiently thoroughly and it is certain that the entities will be coerced into doing exactly what you wrote.

    This threat is not theoretical. The details are classified but what's been leaked is pretty indicative, if you know government bureaucracy, that things have happened for real. Actual chip-gate-level "flaws" and backdoors of very high sophistication have been inserted into the physical manufacturing chain.

  • by Rakishi ( 759894 ) on Sunday April 01, 2012 @05:58PM (#39543675)

    Anyways why does everyone paint eastern governments as entirely evil.

    Because like all large governments they are self-serving and to outsiders that makes them effectively evil. Go look at what the US did during the Cold War. Same thing, except this time the US is on the receiving end. Actually, look at ACTA for a current example of how much the US fucks with other countries for it's own perceived gain.

    The difference is that China has no desire to hide such actions too much and as such is able to take them to whole new levels. They want their economy and their companies to succeed and they will do anything to achieve that goal.

    Does that makes them evil? If you say yes, consider this. They have over 1 billion people and an economy that is not self sustaining yet. Hundreds of millions of those people live in atrociousness conditions right now. Worst case, China fails to build itself into a proper first world economy. Then hundreds of millions will die and hundreds of millions more would probably have been better off if they had died.

    If you think every American not being able to buy three Starbucks Latte's a day more of a sin than having hundreds of kids starve to death, maybe you should look long and hard in the mirror before deciding what is evil and what is not.

  • 10,000 couches (Score:5, Insightful)

    by Dcnjoe60 ( 682885 ) on Sunday April 01, 2012 @06:09PM (#39543757)

    Or, as Joyent's Howard Wu puts it, 'It's kind of like buying couches. If you buy one, you go to a retail store. If you buy 10,000 couches, you go straight to the factory

    Of course what Mr. Wu leaves out is that they are going straight to a factory in Asia instead of the American manufacturers (stalwarts, I beleive the summary called them).

    Googe, Amazon, Microsoft are all mega-companies and strive to maximize their profits. However, at record unemployment levels in the tech industry, they claim they can't find US workers and have to bring in foreign workers. Now, it appears that US equipment manufactures can't produce enough equipment and they have to again go offshore.

    Again, they can do business wherever they want, but the time has come to for them and their shareholders to either decide they want to be an American company with a world wide presence or a foreign company with a US operation.

The only possible interpretation of any research whatever in the `social sciences' is: some do, some don't. -- Ernest Rutherford