Gartner Research

Market Trends: Data Center Infrastructure ODMs Are a Key Threat to DC OEMs' Direct Business

Published: 11 August 2014

ID: G00263451

Analyst(s): Naveen Mishra, Jennifer Wu, Nandita Iyer

Summary

The traditional server ODM business model is changing by directly targeting hyperscale data centers and enterprises. Server OEMs should revisit their manufacturing, marketing and sales strategy to address this new competition.

Table Of Contents

Introduction

Market Trend

  • Factors Enabling ODM Growth
    • Growing Hyperscale Investment
    • Emerging Partnerships With Server OEMs
    • Expansion of Community-Based Development
    • Continued Ability to Offer Lower Cost
  • Factors Inhibiting ODM Growth
  • Should OEMs Leverage ODM Buyer Trends?
  • ODM Providers Should Focus on the Top Three Hyperscale Markets

Contrarian View

  • ODMs Will Dominate the Overall x86 Server Market by Extending Their Hyperscale Success to Enterprises

Vendors to Watch

  • Quanta Computer
  • Wistron
  • Foxconn Electronics
  • Inventec
  • MiTAC

Appendix

  • ODM Definition
  • Hyperscale Definition
  • Large DC Definition
  • Enterprise DC
  • Strategic Planning Assumption Framework

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