Open Compute Project Has Billion Dollar Impact on Server Market

by Sean Michael Kerner

OCP-based designs are being broadly used beyond just Facebook.

The Open Compute Project (OCP) is not just a hobby project for Facebook and hyperscale operators; it had a broad impact of over $1 billion in 2017 alone, according to IHS Markit.

The data on the impact of OCP was revealed at the OCP Summit, where analysts reported that in 2017, the effort to build open-standard servers and networking gear reached $1.2 billion in revenue. Perhaps even more impressive is the fact that the $1.2 billion figure does not include companies that are on the Board of Directors at the OCP, which includes Facebook, Goldman Sachs, Intel, Microsoft and Rackspace.Open Compute Project Summit

In a session at the summit, Cliff Grossner, Sr. Research Director and Advisor at IHS Markit, was asked by a member of the audience what the OCP board members were spending on OCP-related equipment.

Grossner noted that while non-OCP board member spending is only a fraction of total spend, he was not able to disclose what OCP board members spend on equipment due to privacy and non-disclosure agreements.

OCP got its start in April of 2011 as a cross-industry effort to enable more agile and efficient server and data center design. Over the years the effort has yielded multiple server designs, including the open rack and the common slot spec that have become increasingly deployed by organizations.

Servers accounted for approximately 75 percent of non-board OCP revenue in 2017, according to IHS Markit. Overall, the five-year CAGR (compound annual growth rate) for non-board OCP revenues is forecast at 59 percent, growing to approximately $6 billion.

There are multiple reasons why organizations have chosen to adopt OCP based technologies. According to IHS Markit, the top drivers are: power efficiency, cost reductions, standardization and quick deployment capabilities.

To date, most of the revenue and growth has for OCP-related equipment has come from North America. Looking forward, however, Grossner said the APAC region is set to grow at a 103 percent CAGR, outpacing EMEA at 70 percent and North America at 47 percent.

Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.

This article was originally published on Thursday Mar 22nd 2018
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