Rather than choosing mainstream OEM servers, technology giants prefer ODM-supplied servers or white box servers from Taiwan due to their lower cost, and innovative and efficient design, along with the ability to customize the systems.

Investor forecast that ODM firms such as Quanta Computer, Wistron, and Foxconn, plus printed circuit board (PCB) developers BoardTek Electronics, Gold Circuit Electronics, and Allied Circuit, along with server rail kit providers King Slide, and heat sinks manufacture Chaun Choung Technology are beneficial from the rising of cloud computing services.

However, growth in web-based business models such as cloud computing is driving hyperscale investment, and Gartner estimates that in 2014, the hyperscale segment will contribute 82 percent of the direct ODM server revenue.

According to an earlier report, technology giants operating hyperscale datacenter facilities need to scale to hundreds of thousands of servers. They prefer cost-effective procurement through sourcing directly from ODMs, cutting out traditional OEMs, such as x86 servers makers Dell and IBM from the supply chain.