Server brands decline in cost cutting moves

destroyedserverOriginal design manufacturers (ODMs) including Quanta and Wiston Wiwynn are benefiting from moves by big internet service providers to keep costs low.

According to a report in Digitimes, the ISPs are choosing the so-called white box manufacturers like Quanta and Wistron because they don’t see any need to have branded servers in their data centres.

That is likely to hit Hewlett-Packard and Dell.

There’s no systematic let up in server demand, the report said. Sales are steady at 10 million units this year.

The report said Google, Facebook and Amazon are voting with their wallets by adopting servers from the ODMs.

Quanta was well known as being a major ODM of notebooks, but it has diversified into white box servers that now represent just over a third of its revenues.