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.