Worldwide revenues for hyperscale infrastructure (servers and storage) sold by original design manufacturers (ODMs) directly to cloud service providers surpassed $21-billion in 2019.
According to an International Data Corporation (IDC) report, “Worldwide ODM Direct Infrastructure Market Shares, 2019: A Year of Emerging Workloads and Supply Chain Restructuring”, global market revenue for enterprise ODM Direct infrastructure increased 0,2% year over year to $21,2-billion in 2019.
Total ODM Direct infrastructure systems shipped were up 9,7% year over year to 3,3-million units during the year.
ODM Direct infrastructure systems shipped to the top seven cloud service providers (CSP) grew 4,8% year over year to 2,8-million units in 2019, although the share of overall shipments held by these CSPs decreased by 4% year over year.
“The 2019 ODM Direct infrastructure market grew strongly when measured as new system shipments,” says Leon Kao, research manager: infrastructure platforms and technologies at IDC. “This was driven by datacenter system upgrades by large cloud service providers seeing strong demand for existing and emerging services such as AI tools.
“The ‘new normal of work and life’ after Covid-19 is creating even more demand in 2020 for service providers as well as CDN suppliers. And we anticipate the demand will continue through the third quarter of this year.”
In addition to market totals, the report also offers insight into the degree to which each ODM Direct vendor capitalized on this demand. The leading ODM Direct vendors (when measured and ranked by the value of systems shipped) were: Quanta, Wiwynn, Foxconn, Inventec, MiTAC, ASRock Rack, and Gigabyte. These seven vendors accounted for 89% of the $21,2-billion in 2019 sales.