Optimistic about software defined network (SDN) development, Facebook is planning to shift its network switch orders from existing brand partners to Taiwan’s white-box suppliers in 2015 and both Quanta Computer and Wiwynn, a white-box server subsidiary of Wistron, are already preparing aggressively to strive for related orders.
Although China is currently seeing strong demand for cloud computing data centers, Taiwan-based Quanta Computer and Wiwynn, a server brand subsidiary of Wistron are not in a hurry to strive for related orders and will continue to devote their efforts to meeting demand from clients in Europe and North America because China-based server players such as Inspur and Sugon have been competing for orders with cheap solutions, according to sources from the server supply chain.
Taiwan-based notebook ODM Quanta Computer, in view of large potential demand for servers used in cloud computing data centers in Europe and North America, will set up a server factory in Germany, while Wiwynn, ODM Wistron’s subsidiary specifically responsible for producing and marketing servers, will do so in Mexico and Czech, according to Taiwan-based supply chain makers.
Taiwan-based notebook ODM Quanta Computer and Wiwynn, Taiwan-based ODM Wistron’s subsidiary specifically responsible for direct-account (white-box) sale of servers, are expected to see direct-account shipments of servers in 2015 significantly increase on year mainly due to fast growing demand for use in Internet data centers, according to Taiwan-based supply chain makers.
Wistron’s white-box server subsidiary Wiwynn and Quanta Computer are expected to achieve their server business goals for 2014, but in anticipation of growing competition in the server market in 2015, the two players have already stepped up efforts looking to expand their shipments, according to sources from the upstream supply chain.
As large retail chains including Walmart, Best Buy and Target plan to set up data centers to operate e-commerce, server makers Quanta Computer and Wiwynn are looking to land orders based on their lower prices compared to brand vendors’ quotes, according to industry sources. The sources pointed out that the retail chains have all been aggressively expanding their e-commerce business coverage, especially Walmart, which is seeing its sales from the e-commerce segment grow rapidly and is gradually becoming a threat to Amazon.
Quanta Computer and Wiwynn have seen large increases in direct-account orders for data center servers from Facebook and Microsoft, with production capacities already fully utilized, according to Taiwan-based supply chain makers. Despite brand vendors such as Hewlett-Packard (HP) and Dell strengthening their purchasing costs and adjusting customized server products, large Internet players still continue to place their orders with Taiwan-based ODMs.