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Quanta and Wistron doing well out of servers

by on23 November 2015

Succeeding at Dell and HP's expense

Quanta and Wistron say they are landing more cloud server orders from their clients in 2016 as Internet service providers see HP and Dell as too pricy.

According to Digitimes ISPs want to leave the maker of expensive printer ink, HP and Dell because their cloud servers cost too much.

Worldwide server shipments are stable at 10 million units each year and are only seeing limited growth.

ISPs such as Google, Facebook and Amazon are no longer purchasing servers from brand vendors, but instead directly from Taiwan-based ODMs. This allows them to customise their hardware and getting cheaper set-ups.

Quanta's revenues from the server business are expected to grow over 30 per cent on year in 2015, while Wiwynn will see its revenues double from a year ago. This would have been impossible unless they were stealing market share/

Amazon recently announced plans to establish new datacenters in London, the UK, South Korea, India and China, while Facebook is planning to establish centers in Oregon and Texas in the US.

Currently, Quanta's non-notebook businesses together contribute 35 per cent of the company's revenues and Wistron 60 percent.

Last modified on 23 November 2015
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