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Commodity buyers for data center cloud hardware rack solutions transformed by supply chain outsourcing

By VentureOutsource.com Staff

Growing data center demand and bill of materials (BOM) line items impact how commodity buyers use contract electronics partners as global data center IP traffic is expected to grow 25 percent CAGR, five years through 2021, from 6.8 zettabytes per to 1 trillion gigabytes. For infrastructure, the market is expected to grow from US$137 billion in 2018 to US$168 billion in 2023, according to IDC.

Cloud vs traditional IT infrastructure

Spending on cloud IT infrastructure will increase 8.7 percent CAGR in the period 2018 to 2023, to US$100 billion. But looking at traditional IT spend, there will be a CAGR decline of -0.7 percent to US$68 billion, resulting in cloud IT infrastructure spend eclipsing traditional IT infrastructure spend, and cloud spend reaching 60% of total IT infrastructure spend, by 2023, according to IDC.

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As OEM operations, supply chain, commodity managers and executives look to build out OEM data centers, some of the many electronics manufacturing services (EMS), original design manufacturing (ODM), and OEM companies feeding the rising data center demand for hardware systems include:

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