Enterprise cloud computing provider Nutanix's CEO, Rajiv Ramaswami, claims that the ongoing supply chain issues have led to it becoming more economical for many enterprises to turn to cloud-based bare metal servers instead of deploying on-prem.
In an interview with The Register, Ramaswami explained that cloud providers' ability to bulk order hardware is enabling them to offer access to servers at a more attractive price than enterprises would be able to achieve by purchasing hardware and deploying it on-prem or in their data centers themselves.
– Nutanix
This has led to customers who have historically taken an on-prem strategy to embrace cloud-based compute in order to access the hardware faster and at a better price, as hyperscalers are also getting the hardware before others due to chip companies and suppliers prioritizing major customers.
Alibaba's CEO Eddie Wu noted earlier this month that the "scale of our customer base, as well as the scale effect from all of the capex that we've put in over these years," has been an advantage in the context of the hardware shortages, a tack that has been taken by US hyperscalers as well when asked about the memory chip shortages.
