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 primary global market driving factor for the white box server is increased use of analytical applications that requires continuous operations of virtualized and physical servers in data centers. Other factors include nominally priced servers, growing demand for energy-efficient servers in data centers and increased adoption of containerized & micro-mobile data center solutions.
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 regional segmentation of the global white box server market segments the market into continent-based regional markets that are Asia Pacific, North America, Europe, and rest of the world (RoW). North America holds a major share in the global market. This region is witnessing rapid growth due to technological advancements and increasing demand for white-box server across different industry verticals in this region. In this region, the biggest country-specific market is the United States of America (USA) both in terms of revenue as well as the adoption of advanced solutions. Other important country-specific markets in this region are Canada and Mexico.
After North America, Europe is the most technologically advanced regional market. Therefore, it is an important market. The significant country-specific markets in this region are France, Germany, Italy, Spain, and the United Kingdom (UK), followed by the rest of Europe. In Latin America, the market is limited due to limited technological advancement. In the MEA region, the market is small and limited. Reasons for the limited market growth in this region are lack of awareness, lack of education, lack of technological development, and political instability.
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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