Big Cloud is poised to corner the market for enterprise hardware

AI gave hyperscalers first dibs on scarce kit, and business buyers may have little choice but to rent it back

OPINION Whenever I talk to execs from hyperscale clouds, they suggest it is their destiny to eventually host the majority of enterprise workloads. That future is now in sight because the AI boom has shown how they can use their financial muscle to command the hardware supply chain.

Nutanix CEO Rajiv Ramaswami made the situation plain in May when he pointed out that the fastest way to access a new server was to rent it from a hyperscaler rather than wait for an established hardware provider to deliver one.

Ramaswami's observation reflected hyperscalers' superior buying power, made possible by the fact that component suppliers happily put them at the front of their queues for kit in the current supply-constrained environment.

Evidence of that preference is not hard to find. Memory...

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