White Box Server Market by Form Factor (Rack & Tower, Blade, Density-Optimized) worth 14.43 Billion USD by 2022

[147 Pages Report] The white box server market was valued at USD 4.59 billion in 2015 and is expected to reach USD 14.43 billion by 2022, growing at a CAGR of 18.6% between 2016 and 2022. A white box server is a data center computer which is not manufactured by a well-known vendor. It can be found in large data centers run by giant Internet companies such as Google (U.S.) and Facebook Inc. (U.S.). White box servers are usually purchased in bulk quantities from original design manufacturers (ODMs). ODMs generally build their servers with commercial off-the-shelf (COTS) components that can be assembled in different ways or upgraded to provide the customer with a degree of system customization. The base year considered for study is 2015, and the forecast period is between 2016 and 2022.

Market Dynamics

Drivers

• Low cost and high degree of customization driving the white box server market
• Increasing adoption of white box servers among end users
• Growing number of data centers
• Rising adoption of Open Platforms such as Open Compute Project, Project Scorpio, and so on

Restraints

• ODMs' limited service and support capabilities and lack of channel partner skills affect the enterprise business

Opportunities

•  Increase in demand for microservers from data centers
•  Growing support for ARM processors in white box server market

Challenges

• OEMs entering into the custom server market

Low cost and high degree of customization drives the white box server market

White box servers cost less than the branded servers due to their usage of generally available components and absence of premium branding. The lower cost aids organizations use white box server systems to leverage equal or more computing power at a lower price than branded systems. Large-scale data centers, which are operated by large cloud service providers, benefit enormously from lower cost white box servers since they can purchase servers in bulks quantities. Servers from ODMs are being favored by hyperscale data center customers since they provide high degree of customization, along with the benefit of low cost. As white box servers are often assembled when ordered, each server can be put together from a large range of components from which a customer selects. A white box server offers a great amount of flexibility for configuration to meet the requirements of applications assembled to run the system. In contrast, big-name branded servers are available with only fixed or limited configurations

“Data centers expected to account for a major share of the white box server market during the forecast period“

The data center is the major end-user segment in the white box server market and is expected to dominate in coming years as well. The market for data centers is booming, and this segment purchases the servers in bulk quantities which means cost is one of the most important parameters. White box vendors offer low-cost servers compared to OEMs and also offer high degree of customization to end users.

“The market for density-optimized servers expected to grow at the highest rate between 2016 and 2022”

Increased usage of density-optimized servers by hyperscale data centers is one of the driving factors. Density-optimized servers are designed for large-scale data center environments with streamlined system designs that focus on performance, energy efficiency, and density.

“Americas expected to dominate the white box server market between 2016 and 2022”

Increasing number of data centers is one of the driving factors. North America plays a major role in the data center market including the U.S. (New York, Sillicon Valley, Dallas, and Eastern Washington State), Canada, and so on. Although data centers are still found in major American cities, increasingly data centers are being built in the Midwest. Colorado is becoming a data center hot spot. It provides power in abundance, a skilled pool of educated workers, availability of government-approved training programs, and low risk of natural disasters. Most of the world’s largest data centers also exist in the Americas which makes it competitive edge for the server industry.

The major players in the white box server market include Quanta Computer Inc. (Taiwan), Wistron Corporation (Taiwan), Inventec Corporation (Taiwan), Hon Hai Precision Industry Company Ltd. (Taiwan), MiTAC Holdings Corp. (Taiwan), Celestica Inc. (Canada), Compal Electronics (Taiwan), Hyve Solutions (U.S.), Penguin Computing (U.S.), Servers Direct (U.S.), Stack Velocity Group (U.S.), Super Micro Computer Inc. (U.S.), Silicon Mechanics (U.S.), ZT Systems (U.S.).