RESEARCH PAPER: Quanta’s Server Business: Can They Scale Beyond Hyperscale?

Large-scale social media, cloud and search engine providers have become increasing focused on optimizing the capital expenditures for their datacenters. While these hyperscale customers have historically relied on the leading global OEMs (Dell, HP, IBM-now Lenovo) for their server infrastructure, the largest of these companies (i.e. web giants like Google, Facebook and Amazon) have “eliminated the middleman” and now specify and buy servers directly from the Taiwanese companies (ODMs) who design and manufacture the servers on the OEMs’ behalf.

Table of Contents:

  • Executive Summary
  • Quanta’s History in Servers: Transition from ODM to Direct Model
  • Quanta Server SWOT Analysis
  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
  • Has Quanta’s Server Business Hit Its Peak?
  • Call to Action for Quanta: Growing Share in Hyperscale and Beyond
  • Important Information About This Paper
You can download this paper here.

Companies Cited:

  • Amazon
  • ARM
  • Cisco
  • Dell
  • Facebook
  • Google
  • HP
  • IBM
  • Korea Telecom
  • Lenovo
  • Microsoft
  • Oracle
  • Quanta
  • Rackspace
                         
Patrick Moorhead
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Patrick founded the firm based on his real-world world technology experiences with the understanding of what he wasn’t getting from analysts and consultants. Ten years later, Patrick is ranked #1 among technology industry analysts in terms of “power” (ARInsights)  in “press citations” (Apollo Research). Moorhead is a contributor at Forbes and frequently appears on CNBC. He is a broad-based analyst covering a wide variety of topics including the cloud, enterprise SaaS, collaboration, client computing, and semiconductors. He has 30 years of experience including 15 years of executive experience at high tech companies (NCR, AT&T, Compaq, now HP, and AMD) leading strategy, product management, product marketing, and corporate marketing, including three industry board appointments.

Patrick Moorhead

Patrick founded the firm based on his real-world world technology experiences with the understanding of what he wasn’t getting from analysts and consultants. Ten years later, Patrick is ranked #1 among technology industry analysts in terms of “power” (ARInsights)  in “press citations” (Apollo Research). Moorhead is a contributor at Forbes and frequently appears on CNBC. He is a broad-based analyst covering a wide variety of topics including the cloud, enterprise SaaS, collaboration, client computing, and semiconductors. He has 30 years of experience including 15 years of executive experience at high tech companies (NCR, AT&T, Compaq, now HP, and AMD) leading strategy, product management, product marketing, and corporate marketing, including three industry board appointments.