How Computer Networking Has Been Changed By Google Inc (GOOGL), Facebook Inc (FB), and Amazon.com, Inc. (AMZN)?

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Google Inc (NASDAQ:GOOGL), Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN) have been able to alter the world of computer networking. Driven by the desire to address their own unique networking needs and rapidly expanding online operations, the companies have been able to influence how networking equipment are rendered in the market.

At the same time, networking gear providers Cisco Systems, Inc. (NASDAQ:CSCO) and Juniper Networks, Inc. (NYSE:JNPR) have seen the ground shift beneath their feet.

The growth of cloud computing and the massive data centers that companies such as Google, Facebook, Amazon and Microsoft need has led the companies to seek further control on a cost and performance basis to insure gear meets their specific needs.

Expensive Switches

Cisco, and other U.S. networking hardware providers, for a long time sold expensive switches that could only run on their own software. Google Inc (NASDAQ:GOOGL) and its Internet peers were forced to put up with the high costs and complexities of programming the switches that Cisco and its peers sold them.

However, they could not withstand the challenges for too long. Gradually, Google Inc (NASDAQ:GOOGL), Facebook and Amazon turned to Asia to search for better networking solutions. The efforts came as the company’s networks grew larger and larger spiraling the costs. Their interest was in running their own software on the “white-label switches” they purchased, and Asian vendors helped them to do just that. The move has been able to change the world of networking completely. The companies have also been able to cut their operating expenses besides gaining greater control of their networks.

With the massive switch in the market preference, U.S. networking giants have also been trying to push out basic networking switches that can run on any software that the user desires. Hewlett-Packard Company (NYSE:HPQ), Dell and Juniper are already selling such basic switches to try to regain lost ground in the networking market as major customers turn East.

Native switches and software

Facebook Inc (NASDAQ:FB) particularly has made a major move in altering its networking infrastructure. The company recently said that its data centers have been installed with its own switches and run its own software on them.

While Cisco may claim that most of the largest Internet companies use its gears, things have changed as the biggest cloud computing and networking companies have all begun to use or explore their own switches.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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