The Open Compute Project Foundation (OCP) announces today the full results of an assessment of the market impact of the Open Compute Project worldwide. OCP engaged IHS Markit, a world leader in critical information, analytics and solutions, to help validate the adoption of OCP gear in the data center 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 more than 4,000 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.
Revenue generated from OCP equipment in 2017 reached $1.2 billion from non-board member companies. It is well known that OCP board member companies have widely adopted OCP principles with great success, however it was unknown until now how far beyond these market leaders that OCP had reached. OCP board member companies include Facebook, Goldman Sachs, Intel, Microsoft and Rackspace.
What is even more impressive is the results of the IHS Markit study is the forecast – they predicted that OCP adoption among non-board member companies would surpass $6 billion by 2021.
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. Equipment markets explored in this study included servers, storage, network, rack, power and peripherals. Among the findings:
- 2017 OCP YoY growth from non-board member companies was 103%
- The 5-year CAGR (compound annual growth rate) is 59%, while the total market growth is expected to be in the low single digits
- Servers account for almost 75% 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%, 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
- Standardization and quick deployment capability
The IHS Markit study also uncovered barriers to OCP adoption, which included awareness of where to trial and buy OCP gear, and hardware/software integration. The OCP Marketplace, found at www.opencompute.org/products, recently surpassed 100 products, and continues to expand through a robust pipeline of contributions from OCP Solution Providers. And several announcements were made at the Summit, including the launch of two new project groups to address these Community needs, Security and Open Systems Firmware. OCP and the Linux Foundation also announced that LF Networking and OCP will partner to Jointly enable SDN and NFV transformation.
OCP and IHS Markit released the full results of the research today at the Annual OCP U.S. Summit, held at the San Jose Convention Center in San Jose.
Learn more at www.opencompute.org
About IHS Markit
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world's leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
The Open Compute Project Foundation is a 501(c)(6) organization which was founded in 2011 by Facebook, Intel and Rackspace. The 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.
Dirk Van Slyke
Director of Marketing