Big procurement of 2.3 billion metadata center switches, 5 winning bids! New manufacturers are shortlisted

On July 26, 2023, China Mobile released the "China Mobile 2023 to 2024 Data Center Switch Product Centralized Procurement (New Part) _ Announcement of Winning Candidates"

Large procurement of 2.3 billion metadata center switches, with 5 winning bids and new vendors shortlisted

l  The data center switch market is a large market that continues to grow, with significant sustained growth in the next five years, surpassing the 5G market in terms of sustainability and growth. It is worth paying attention to.

According to the previous announcement, the procurement fulfillment period for this project is one year, and 30660 data center switches will be purchased, divided into 5 packages:

l  The previous phase of China Mobile's centralized procurement of data center switches was in 2022, with a procurement scale of 16420 data center switch equipment at that time.

l  Compared to the previous period, the total procurement scale this year is close to doubling! This also echoes the increased investment in cloud computing infrastructure in China Mobile's annual report.

l  The increase in scale is mainly due to data center switches in specific scenarios.

5 packages, with a total of 5 manufacturers winning the bid:

l  Huawei, Ruijie Network, ZTE, H3C, and FiberHome Communications won the bid.

l  Huawei, Ruijie Network, and H3C each won 3 packages. ZTE has won four bids, but the largest bid has not been shortlisted.

l  FiberHome Communications has been shortlisted for the largest package, Package 1- Data Center Switch (General Scenario)

According to the quotation and bid winning shares, the total bid winning shares of each manufacturer are as follows:

l  Huawei has a 30% share, while Ruijie Network, ZTE, and H3C are all around 20%, and FiberHome Communications is 6.5%. The overall share is relatively balanced.

l  In the past three years, according to the bidding situation of China Mobile, China Telecom, and China Unicom's data center switch centralized procurement, Huawei, H3C, ZTE, and Ruijie Network have basically won the bid, especially in China Mobile's procurement.

l  This issue of Fenghuo Communication won the largest bid package 1, and it is also the first time in recent years that it has been shortlisted for centralized procurement of switches in China Mobile Data Center.

l  Data center switches are a huge market, with just three major operators building and expanding their capacity in the past two years, resulting in nearly ten billion yuan of procurement.

From the investment directions provided by the three operators in their 2022 annual reports, this year will be a big year for data center switches. What are the results of centralized procurement of data center switches for telecommunications and China Unicom in the future? Stay tuned together!