Redmond to take component purchasing rights from partners

Oct 17, 2016 11:37 GMT  ·  By

Microsoft is taking over component purchasing rights from partners, as it’s looking to boost server quality and streamline the process of issue diagnosis should any defect be discovered.

Previously, the company allowed original device manufacturers (ODM) to pick their own suppliers for components used for products built for Microsoft, but from now on, the software giant will get involved in this process directly, as it’s looking into ways to achieve better quality and prevent defective parts from being used on its servers.

According to a report from Digitimes, Microsoft already has a team whose main responsibility is component quality evaluation since two years ago, but its responsibilities will now include working with suppliers directly in order to ensure quality.

Redmond is the last big name that opts for choosing component suppliers on its own, after Google, Facebook, and Amazon did the same thing earlier this year.

Everyone’s tight-lipped on the new strategy

The same report reveals that Microsoft has already started talks with several suppliers for cooling modules, chassis, and slide rails, but it plans to continue working with a number of partners for manufacturing, including Dell, HP, Quanta Computer, and Wlwynn.

Microsoft hasn’t yet issued a statement to confirm the new shift in strategy and partners obviously remain tight-lipped too, but such a decision makes sense for the software giant as it continues investments in datacenters across the world.

The firm is hoping that, by getting more control over the manufacturing process of hardware used on its servers, defective components not only that would be prevented from reaching systems, but should this happen, identifying the supplier and fixing the problem would be a substantially streamlined process.

On the other hand, this could have an impact on partners’ business, as most of them contacted several suppliers and had them compete for their orders, thus reducing costs in a substantial manner. This, however, didn’t align with Microsoft’s aim for increased quality, so it’ll be interesting to see how partners see this new initiative planned by the software firm.