White Box Server Market: Introduction

  • A white box server refers to customized servers that are either home built, or built by white box suppliers called ODMs (Original Design Manufacturers). White box can be customized or unbranded. White Box (unbranded) servers use the same or superior components as big-name manufacturers; however, some are available with customized capabilities at lower cost. The ease of customization enables for individual parts to be replaced, rather than replacing the entire server when equipment fails. White box servers are increasingly being used by Open Computer Project (OCP) developers. Major operating systems such as Windows Server and Red Hat Enterprise Linux along with visualization software can be run on a white box server.

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Rise in Data Centers and Cloud Computing

  • Rapid rise in demand for public cloud services have prompted cloud providers to engage in fierce competition for the best pricing terms to win over end-users. With a larger priority on reducing both capital and operational expenditures, it doesn’t make sense for many companies, especially hyperscalers (cloud giants like Google or Amazon), to continue paying a premium for OEM servers in the face of viable, inexpensive alternatives.
  • Increase in internet usage and networking globally has increased the demand for more cloud space, which further propels the demand for more data centers and subsequently, fuel the demand for white box servers
  • Several large corporations have also started use of white box servers for their storage, as use of white box leads to lower cost and corporations have to pay only for those features they require or use.
  • Consequently, several OEMs have also entered the white box server market
  • White box infrastructure represents an interesting space in between branded and custom hardware procurements, one that provides an opportunity for both traditional OEM suppliers and newer ODM suppliers to expand
  • Major factors boosting the adoption of white box servers are
    • Customization
    • Cost savings

North America holds Prominent Share of Global Market

  • North America accounts for a notable share of the global market, as the region is home to numerous large corporations and a significantly high number of data centers
  • Europe and Asia pacific followed North America, in terms of share of the global white box server market, due to an increase in usage of internet applications that requires huge demand for data storage facility. Several ODMs in these regions have developed switching products and white box storage that are energy-efficient and cost-effective, which in turn is boosting the market.
  • Countries in Asia Pacific, such as China and India, are driving the demand in the region; China has a high number of hyper-scale platforms and India is home to a prominent IT industry.
  • IT as Service in cloud computing, which provides networking, storage, CPU, and security, are virtualized and delivered as service, which is also boosting the white box server market

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Key Players Operating in Global White Box Server Market

White box servers has opened the gates for many ODMs. ODMs white box servers are low cost and customized; however, they still lack in aftersales support and maintenance. Numerous open source projects are helping ODMs.

Key players include:

  • Quanta Computer Inc.
  • Servers Direct
  • Stack Velocity Group
  • Silicon Mechanics
  • Super Micro Computer Inc.
  • Inventec Corporation
  • Wistron Corporation
  • Penguin Computing
  • Hyve Solutions

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