OCP’s Global Market to Quintuple by 2021, Says IHS Markit

The Open Compute Project (OCP) teamed up with IHS Markit to determine the adoption of OCP’s hardware in the technology industry. The research found that the primary adoption drivers of OCP gear include power efficiency, cost reductions, standardization, and quick deployment capability.

While the full report will be released at OCP’s upcoming annual summit, the report concludes that OCP’s total market impact is expected to grow by more than five-fold by 2021.

IHS interviewed members of OCP, service providers, and suppliers. And it conducted its own industry research to provide a forecast for OCP through 2021. The research group explored equipment markets for servers, storage, network, rack, power, and peripherals. IHS excluded data from OCP board member companies, which are Facebook, Goldman Sachs, Intel, Microsoft, and Rackspace.

While the research has not yet been finalized, IHS found that OCP’s five-year compound annual growth rate (CAGR) is 59 percent, while the total market growth is expected to be in the lower single digits.

Additionally, IHS found that in 2017 OCP grew 103 percent year-over-year from non-board member companies. Also in 2017, servers accounted for nearly 75 percent of non-Board member revenue. Racks, power, peripherals, WiFi, and passive optical networks (PON) are expecting the highest growth rates looking to the future.

While the majority of non-board member OCP revenue in 2017 came from the Americas — primarily due to hyperscaler, teleco, and financial industry adoption — Europe, the Middle East, and Africa (EMEA) are expected to have a CAGR of 70 percent. This is primarily driven by telecommunications firms.

IHS anticipates that EMEA revenue from non-board member companies will pass $1 billion by 2021, while Asia Pacific will surpass EMEA in adoption by 2020 or earlier.

In October, IHS released its results for its Data Center Server Equipment market tracker and found that an increasing number of companies were choosing OCP and white box servers for their data centers. OCP server revenue reached $111.3 million in the second quarter of 2017, a 41 percent increase from the previous year. IHS concluded in the report that it expects these servers to represent 7 percent of all servers shipped in 2021.

OCP was founded in 2011 by Facebook, Intel, and Rackspace. Its mission is 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.

The group has projects for storage, networking, server design, data centers racks, certification, standards, and hardware management specification. Its membership is composed of 200 organizations and thousands of engineers.