ZTE is extending its relationship with Virtuozzo
The Chinese vendor is already named as one of the top five domestic data center server providers
IDC has noted that server sales are growing dramatically as more cloud and AI business emerges
Chinese vendor ZTE is extending its relationship with Swiss-based cloud software player Virtuozzo, delivering hyper-converged infrastructure (HCI) for so-called alternative cloud providers.
Delivering a product that can be used by alternative cloud providers - rather than the Big 3 hyperscalers - could give ZTE and Virtuozzo a fresh route into providing cloud infrastructure for customers around the world. Unlike North American and many European telecom operators, which have been banned from using cheaper Huawei or ZTE gear thanks largely to programs from both President Biden and Trump, European and American enterprises can still use the Sino-Swiss cloud products.
ZTE first signed a deal with Virtuozzo in November 2024. The companies said they would develop hyper-converged infrastructure, which is software-defined IT infrastructure, as well as virtualization software and hybrid cloud systems.
ZTE’s cloud presence is built off of its growing server business. Obviously, any cloud provider, of whatever stripe, needs a lot of servers and storage in a data center or server farm to serve their cloud customer’s needs.
ZTE said it shipped over 300,000 units in 2024. The company was ranked first for server shipment to China’s telecom sector in March 2022.
According to IDC, the server market is growing rapidly, with a revenue increase of 91% for the fourth quarter of 2024. ZTE is named one of the five major players in the Chinese data center server market by Mordor Intelligence, which also names Huawei, Dell, Lenovo and HBC as top companies in that market.