17 Jun 2020

Worldwide 2019 Enterprise ODM Direct Infrastructure Market Value Surpasses $21 Billion, According to IDC

FRAMINGHAM, Mass., June 17, 2020 – A new report from International Data Corporation (IDC) shows 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 the IDC report, Worldwide ODM Direct Infrastructure Market Shares, 2019: A Year of Emerging Workloads and Supply Chain Restructuring (IDC #US46394420), 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 7 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 4.0% year over year.

Worldwide ODM Direct Infrastructure Market Highlights, 2019

Metric

2019

2018–2019 Growth (%)

Total shipment

3,281,666

9.7%

Total capacity (Exabytes)

226 EBs

-6.4%

Revenue ($B)

Compute intensive

$13.1B

6.6%

Storage intensive

$8.0B

-9.3%

Storage expansion

$0.1B

62.5%

Total revenue

$21.2B

0.2%

Source: IDC Worldwide ODM Direct Computing Platforms and Storage Qview, 2020

"The 2019 ODM Direct infrastructure market grew strongly when measured as new system shipments," said 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. More detailed information for each of these vendors can be found within the published report.

Notes:

  • ODM Direct refers to system sales by original design manufacturers (ODMs) directly to cloud service providers rather than through traditional OEM partners.
  • Top 7 Cloud Service Providers include Amazon, Microsoft, Facebook, Google, Alibaba, Tencent, and Baidu.

Market Sizing Methodology, Source & Taxonomy Notes

The information in this quantitative study is based on a manufacturer (ODM/EMS) view of the computing platform and storage systems sale. Revenue associated with the products to the end user is attributed to the manufacturer which include original design manufacturer (ODM). In the ODM Direct model, an original design manufacturer (ODM) sells a system directly to a customer, without any original equipment manufacturer (OEM) or other systems intermediary involved in the transaction. These customers tend to be larger customers that typically manage their own component supply chain as well. To be classified as an ODM Direct model, the ODM and/or its value-added integrator (VAI) partners need to perform the final assembly of the system and then ship the product to the customer's facilities. The customer may perform some work in the installation of the server, but the basic system has already been assembled.

Data within this report is taken directly from IDC's Worldwide ODM Direct Computing Platforms and Storage Qview. This IDC Qview is a quantitative, quarterly view of ODM Direct vendor performance in the computing platforms and storage systems markets. This QView provides insight into revenue, units, and capacity shipped by named ODMs directly to end-user consumers. This product includes market performance for ODMs and their shipments of computing platform and storage quarterly.

For more information about the IDC's Worldwide ODM Direct Computing Platforms and Storage Qview, please contact Lidice Fernandez at 305-351-3051 or lfernandez@idc.com.

Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.



All product and company names may be trademarks or registered trademarks of their respective holders.



Coverage

Regions Covered

Worldwide


Topics Covered

Disk storage, Enterprise server, Serial ATA drive