REDWOOD CITY, Calif. – December 19, 2018 – According to a recently published report from Dell’Oro Group, the trusted source for market information about the telecommunications, networks, and data center IT industries, global white box server shipments surpassed 30 percent market share in 3Q18. Alibaba is the latest Cloud hyperscaler to adopt white box.

“The Top 4 U.S. Cloud service providers—Google, Amazon, Microsoft, and Facebook—were the first to adopt white box servers in order to drive a greater degree of hardware customization, efficiencies, and cost-reduction benefits in their data centers,” said Baron Fung, Director at Dell’Oro Group. “Alibaba recently adopted white box servers with the current server refresh cycle. We expect other Cloud hyperscalers that currently deploy branded servers to consider white box adoption next year as they continue to scale.  This will have important long-term implications in the Cloud server vendor landscape,” explained Fung.

Additional highlights from the 3Q18 Server Quarterly Report:

  • Cloud hyperscale data center Capex are on track for double-digit growth in 2018. Slower growth is projected in 2019.
  • The Enterprise server refresh cycle continued for the third straight quarter. However, Enterprise growth is expected to slow in 2019 as the server refresh cycle subsides.
  • Vendors continue to report strong revenue growth as server average selling prices increased Y/Y, primarily due to the richer configuration of the Xeon Scalable platform.

About the Report

Dell’Oro Group’s Server Quarterly Report provides complete in-depth coverage of the Server market with tables covering manufacturers’ revenue and unit and port shipments for Blade, High-Density, and Stand-Alone servers. Network and virtualization attach rates, VM density, common equipment overlap between storage, servers and switching, and white box versus traditional enterprise server shipments are included. To purchase this report, please contact us at dgsales@delloro.com.

 About Dell’Oro Group

Dell’Oro Group is a market research firm that specializes in strategic competitive analysis in the telecommunications, networks, and data center IT markets.  Our firm provides in-depth quantitative data and qualitative analysis to facilitate critical, fact-based business decisions.  For more information, contact Dell’Oro Group at +1.650.622.9400 or visit www.delloro.com.

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