As large retailers set up data centers to operate e-commerce, ODM server makers Quanta Computer, Inventec, Wiwynn and others get orders based on their lower prices compared to the server brands.
Retailers are aggressively expanding their e-commerce business coverage and facing the need for Big Data. These famous cost-conscious customers see hardware as a major cost consideration for their data center establishments.
Chinese and Taiwan server ODMs appeal to this type of data centre customer with lower prices and bargain concessions.
Competition among the Asian server ODMs has also grown fierce recently, which only puts more downward pressure on price-- making these companies and their servers even more attractive to cost-conscious retailers and others joining in the data center boom.