Open Compute Project sector expected to grow over five times globally by 2021



The Open Compute Project Foundation (OCP) announced Tuesday preliminary results of an assessment of the market impact of the Open Compute Project worldwide. OCP has engaged IHS Markit, a world leader in critical information, analytics and solutions, to determine the adoption and impact of OCP gear in the technology industry.

Since its inception, OCP has worked to drive innovation in and around the data center industry, bringing together nearly two hundred member organizations and thousands of engineers. The demands on the modern datacenter continue to expand with the growth of IOT, security and edge computing, as well as increasing energy consumption requirements.

IHS Markit interviewed OCP members, suppliers and service providers, as well as incorporated their own in-depth industry research to determine non-board member revenue by region and vertical, as well as provide a forecast through 2021. OCP Board member companies include Facebook, Goldman Sachs, Intel, Microsoft and Rackspace. Equipment markets explored in this study included servers, storage, network, rack, power and peripherals.

The preliminary findings reveal that the 2017 OCP YoY growth from non-board member companies was 103 percent; the five-year CAGR (compound annual growth rate) is 59 percent, while the total market growth is expected to be in the low single digits; servers account for almost 75 percent of non-board OCP revenue in 2017, with rack, power, peripherals and other (primarily WiFi and PON, or passive optical networks) expecting the highest growth rates.

The America’s represented the majority of non-board OCP revenue in 2017, through hyperscaler, telco and financial industry adoption, while EMEA has a forecasted CAGR of 70 percent, primarily driven by telecommunications firms. EMEA revenue from non-board member companies is expected to surpass $1 billion (US) by 2021, while Asia Pacific is expected to surpass EMEA in adoption as early as 2020

Also among the findings that IHS Markit uncovered are the primary adoption drivers of OCP, which include power efficiency; cost reductions; besides standardization and quick deployment capability.

“OCP is excited to work with IHS Markit to get an independent view of our ability to influence the market through adoption. This study creates a baseline for us to measure our progress against, as well as gives us insight into projected growth in regions and markets. It also provides a view into perceived value as well as barriers for adoption. While we are pleased with the initial indicators, we also recognize we have much to do to continue our momentum,” stated Rocky Bullock, CEO for the Open Compute Project Foundation.

Last June, The Open Compute Project Foundation announced that online  and mobile commerce vendor Alibaba Group had joined as a Platinum member.

OCP was initiated by Facebook in 2011 with a mission to apply the benefits of open source to hardware and rapidly increase the pace of innovation in, near and around the data center and beyond. Since then, OCP has been consistently innovating around open source contributions for networking, servers, storage and Open Rack.

The company aims to build the future infrastructure of commerce. Alibaba Cloud, the Group’s cloud computing arm, develops highly scalable platforms for cloud computing and data management. It provides a comprehensive suite of cloud computing services to support participants in Alibaba Group’s online and mobile commerce ecosystem, including sellers, and other third-party customers and businesses.

OCP and IHS Markit will finalize the results of the research and announce the complete results of the study in March this year.

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