White box or white-box servers are off-brand hardware designed by original design manufacturers (ODMs). These servers or personal computers are assembled using off-the-shelf parts and will be assembled at modest costs as compared to ready products available in the open market. Ease of customization and lowered downtime associated with them is likely to open up opportunities for the global white box server market.
The global white box server market is anticipated to touch a value of USD 15 billion by exhibiting a CAGR of 19% from 2017 to 2023, according to Market Research Future (MRFR). The high need for applications which function with a mix of physical and virtual servers in data centers can drive market growth year-on-year. This can be credited to the huge volume of data driven by digitization and scalability of enterprises. Adoption of micro-mobile data center and contained servers can support the market in the forthcoming years.
The Open Compute Project (OCP) by Facebook has brought ODMs into the limelight. Partnerships between ODMs and software companies to create customized solutions for their data can bode well for the market. Lease or pricing plans suitable for corporates is likely to entice corporations looking to make the shift towards digitization. Emergence of green data centers as a viable option can open up avenues of growth to the white box server market till 2023.
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The white box server market is segmented by form factor, application, operating system, and components.
By form factor, it is segmented into blade servers, tower, rack, and others. Blade servers are expected to gain the largest market share till 2023. Manufacturers are offering servers with low mass which can be fit easily into any customized setup. This will allow solution architects to customize design system architecture in accordance to the company’s needs.
By application, it is segmented into data centers and enterprise. The data center application can generate maximum revenue due to the boom in the digital revolution. White box servers offer a viable solution for large enterprises to adapt to new strategies for improving their performance as well as for small enterprises looking to scale virtually.
By operating system, it is segmented into UNIX, Windows, Linux, and others.
By components, it is segmented into network adapter, motherboard, power supply, processor, and memory.
The Asia Pacific (APAC) region is likely to be the most profitable for the white box server market due to heavy usage of mobile phones. The era of smartphones which have made communication possible through multiple media formats can drive regional growth. China, Japan, and India are regions with a large consumer base and high purchasing power can induce demand for white-box servers which can handle large volumes of data.
North America is touted to trigger heavy demand from the white box server market due to presence of large enterprises with a need to minimize operational and maintenance expenses. Digitization of data and virtualization of hard drives by large organizations can be a major driver in the region. Large number of data centers can also trigger market demand during the forecast timespan.
Key market players include Penguin Computing (U.S.), Wistron Corporation (Taiwan), Servers Direct (U.S.), Celestica Inc. (Canada), MiTAC Holdings Corp. (Taiwan), Inventec Corporation (Taiwan), Stack Velocity Group (U.S.), Compal Electronics (Taiwan), Silicon Mechanics (U.S.), ZT Systems (U.S.), Hon Hai Precision Industry Company Ltd. (Taiwan), Quanta Computer Inc. (Taiwan), Hyve Solutions (U.S.), Super Micro Computer Inc. (U.S.), and others. Initiatives by major organizations to boost their system performance will be the strategy to be capitalized by these players to gain a major market share.
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