How to Make the Best Choice on White Box Servers for Your Data Center

The worldwide server market is finally seeing some growth in sales after a slump for several years. Some may attribute this growth to the increasing popularity of white box servers. Major tech companies like AWS and Facebook have been building their data centers with white box servers. 

Such off-brand, customizable servers cater to the specific needs of enterprises, especially those with reliable technical resources for maintenance and repairs.

However, support remains a critical deciding factor for enterprises, turning their preference toward original equipment manufacturers (OEMs). 

In this article, we will discuss the following:

• What a white box server is.
• Whether companies should opt for white box servers or stick with OEM.
• An overview of the differences to help you make the best choice for your data center.

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What Is a White Box Server?

A white box server is an unbranded or generic server with components from different suppliers. These are supplied by original design manufacturers (ODM), who don’t necessarily produce every component of the server but rather put it together using parts from various manufacturers. This is why white box servers are also referred to as ODM servers. 

In contrast, OEM servers are name-brand servers manufactured by one manufacturer that also produces all or most equipment components. Moreover, OEM servers are backed by support and warranty from the company. 

White box servers essentially offer customizability. While some ODMs sell pre-build servers, some only supply the parts, which the client then uses to build the server. The latter approach is markedly different from OEMs that supply ready-to-be-plugged equipment. 

Growth in the White Box Server Market

There has been unprecedented growth in the sales of white box servers. This is mainly because hyper-scale data center vendors like AWS, Microsoft, and Cloudflare opt for off-brand servers primarily for cost savings.  

Since the second half of 2017, the ODM Direct group (lesser-known ODM server companies grouped together) has consistently grown in its worldwide server market share. Inspur, a Chinese ODM, has also consistently increased sales of its servers, grabbing a spot in the top five sellers worldwide. 

Another white box server company worth mentioning is Super Micro, based in the US.

(Source: data)

The rise in the popularity of white box servers and the increase in sales comes at the expense of the “big three” of the server market: Dell EMC, HPE, and Lenovo. Although these three companies and IBM still dominate the server market, their market shares aren’t nearly as big as six or seven years ago. 

White box servers are the go-to for hyper-scale cloud providers witnessing exponential growth. Moreover, these companies can build the servers using parts supplied by ODMs. Only some enterprises have that capability, which pushes them to stick with OEMs. 

In recent years, supply chain disruptions resulted in long lead times for IT equipment, including servers, switches, and storage. With lead times going from weeks to months, data centers scaling up every month had no choice but to move to quicker white box network equipment supplies. 

Although lead times are supposed to improve by the latter half of 2023, many data centers may not return to OEMs, especially considering the low cost of these off-brand servers. 

White Box vs. OEM: What Are the Advantages and Drawbacks?

Even though servers from ODMs have become popular with some large enterprises, many are still hesitant to adopt them because of their drawbacks compared to OEM servers. 

To understand the differences between OEM and ODM servers, let’s talk about the pros and cons of each. 

White Box Servers Pros and Cons

Pros

• Low Cost: A cheaper price tag drives the higher sales of ODM servers. These servers cost significantly less than their name-brand counterparts because suppliers use various components from different manufacturers, typically based in China, that are cheaper, resulting in the overall lower cost of producing the server. 
  
  
• Customization: A more business-oriented advantage of white box servers is customization. As components are generic, building a server according to specific business or technical configuration requirements is possible.
  
  
• Availability: It’s easier and quicker to put together a white box server, as it’s not restricted to a single manufacturer for parts. OEM servers can have longer lead times, which is not the most convenient for enterprises upscaling quickly. 

Cons

• Lack of Support: The major drawback of white box servers is that they lack the kind of support that OEMs provide for their servers. OEM equipment is typically backed by maintenance until the end of its service life. 
  
  
• Lack of Warranty: While some ODMs provide a warranty on certain parts, the OEM warranty is decidedly better and longer. If a white box server fails, the customer may have to fix it or buy a new one. 

OEM Servers Pros and Cons

Pros

• Cutting-Edge Technology: OEM servers offer better technology as the manufacturers invest heavily in improving their products.
  
  
• Better Service and Support: Name-brand servers from well-known manufacturers are accompanied by high-quality service and reliable after-sales support. 
  
  
• Longer Warranty: Unlike ODM servers that typically have a warranty for individual parts, OEMs offer a warranty for the entire server. Commonly, the warranty period is three years.

Cons

• Higher Cost: Buying, maintaining, and fixing OEM servers can be costly. And with every new model, prices tend to increase, which makes capital spending much higher. Enterprises expanding quickly may need to spend hundreds of thousands of dollars every quarter to acquire new servers. 
  
  
• Less Customization: Another drawback of branded servers is that they don’t offer as much customization as ODM servers. Also, customization can make them more expensive. 

What Is the Right Choice for Your Data Center?

White box servers are currently favored by hyper-scale data centers and cloud providers that leverage these servers' cheaper costs and customizability. However, there are serious drawbacks to these servers that make them unsuitable for a variety of enterprises. 

Enterprises that lack the technical expertise for effective maintenance cannot risk their infrastructure integrity with ODM servers. OEM servers have maintenance coverage, which can be extended beyond service life with third-party maintenance providers. 

Moreover, the components of white box servers are less redundant and may not always be available for replacement. Similarly, fitting them into a server rack can be difficult because of the sheer variety of sizes and shapes. 

White box servers are more suitable for data centers growing at an incredibly high rate and need to scale up quickly and cost-effectively. Besides cost savings, ODM servers don’t offer many significant long-term benefits.

Best Way to Procure OEM Servers

The increasing prices of OEM servers and shorter lifecycles have become a concern for IT enterprises dealing with increasing data handling requirements. At the same time, the quality of OEM servers and their service also makes them an ideal option for enterprises that need reliable infrastructure. 

If you’re looking for OEM servers but want to control procurement costs, PivIT has your back. As a procurement specialist with an in-stock inventory worth $120 million, PivIT can help you find the server you need while saving money. 

Furthermore, you can also find legacy servers at a significant markdown. That doesn’t just save you money but also helps reduce your carbon footprint. With over 30 OEM partners, consider PivIT your go-to for new and old OEM servers!