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:
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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.
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.
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 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.
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!