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Why Google, Amazon, and Facebook are turning to Asia for cheaper networking equipment

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A new report examines why leading internet companies are turning to Asia to build their networking gear.

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Most of our electronics are made in China, and when it comes to the biggest internet companies on Earth, things aren't all that different. At least according to a new report from Wired, which examines why the likes of Google, Amazon, and Facebook are turning to both China and Taiwan to buy their networking gear in bulk. These companies are reportedly purchasing tens of thousands of network switches directly from the manufacturers, bypassing American firms like Cisco, HP, and Juniper — which sell the same switches at marked up prices. Google has actually been designing its own switches since 2005, while Asian firms have done the actual manufacturing. Other internet companies are now following Google's lead, but — at least for now — it appears to be limited to only the biggest organizations. "It's kind like buying couches," Howard Wu, from cloud computing service Joyent, told Wired. "If you buy one, you go to a retail store. If you buy 10,000 couches, you go straight to the factory."