White Box Server Market Trends

Growth Drivers

• Integration of AI-optimized white box servers in 5G network infrastructure: The surge in deployment of 5G globally has bolstered the impact as well as the use of AI in white box servers to successfully manage complex data and ensure lower latency at the network edge. Organizations such as the O-RAN ALLIANCE are at the forefront of advocating the adoption of interoperable white box hardware to facilitate cost-effective 5G deployments. Moreover, the rise in demand for 5G services has created opportunities for telecom operators across regional markets to invest in white box servers to meet customized scalability requirements. The table highlights the 5G expansion statistics via the Ericsson Mobility Report and GSMA.

Expansion of energy-efficient white box servers in hyperscale data centers:

The expansion of hyperscale data centers is a major catalyst in the adoption of white box servers which are energy-efficient. There has been an increasing requirement to reduce power consumption, creating opportunities to provide white box servers. Data operators can lower their power usage effectiveness (PUE) ratios through the deployment of white box servers. The shift contributes to sustainability whilst also ensuring a greater ROI. The table below highlights recent regulatory push on data centers to mitigate the use of power, which ties with the growth curve of the white box server industry.

Technological Trends in the Global White Box Server Market

The global white box server sector is influenced by technological advancements, especially the advent of modular designs. Significant trends include the integration of AI and hyper-converged infrastructure (HCI). The innovations in modular designs have enabled industries to effectively deploy white box servers. Moreover, a growing shift to AI-optimized white box servers has bolstered by the advent of NVLink architecture and next-generation GPUs. The table below highlights major technological advancements and uses cases of the white box server market:

Challenges

• Supply chain vulnerabilities in semiconductor and raw material sourcing: The global white box server market has faced considerable impediments due to disruptions in the supply of semiconductors. Additionally, constraints in the supply chain of critical raw materials such as specialty metals and high-grade silicon impact the market. As per the U.S. Department of Commerce, semiconductor shortages have caused production delays of over 12 to 16 weeks. This constraint adds to the lead times and production costs, causing impediments to white box server providers in meeting the rising necessitates for cloud applications.