Supermicro Racks Up the System Revenues | Hacker News Reader

Supermicro Racks Up the System Revenues

nextplatform.com

17 pointsrbanffy9 comments

> David Weigand, chief financial officer at Supermicro, said on the call that rack-scale and AI system sales accounted for 53 percent of revenues, which is $1.12 billion. Sales to large datacenter customers and OEM appliances to other vendors (of which we also think Nvidia is one) accounted for $1.17 billion, up 26.3 percent.

This explains pretty much the whole thing. People are building new racks at an unprecedented pace, it is like a gold rush, and anyone who is selling tools (whether it be TSMC's raw wafers, NVIDIA's chips, or even a company that only builds HVACs for datacenters) is probably going to see their peak.

Are you implying it will decrease?

Personally I think that SuperMicro (and oxide) scratches a niche that dell, hpe, ibm and other "on premise" enterprise solutions don't really seem to care about. The smaller, but hyperscaler style of DC without dealing with the bullshit from those sales reps. I think over the next 5-10 years, the pendulum will swing back to either colocated or on-prem compute/storage now that places like AWS, Azure and GCP have critical mass with minimal incentives to lower their prices.

Supermicros AMD 1u products, GPU and storage products don't really have competition price-wise from other providers, and the TCO for a colocated beast of a server is like 20% of AWS over 3 years. SuperMicro has a bunch of 32dimm servers and their ram isn't marked up insane like other companies. And their 60 and 90 3.5 inch drive servers are really hard to beat price-wise for distributed storage.

Dell won't even sell you "dumb" storage for zfs. I can get 1PB for less than 30k in a 60 bay SM chassis.

Dell "almost" got it with their c series, where they had like 4 compute in a 2u box, so you can run 8 CPUs in 2u with like 12 or 16 slots of ram per compute, but they increased the pricing so much they aren't worth it anymore.

Oxide will eat Supermicro's lunch. There's no offering that Supermicro and other vendors can offer that comes close to what an integrated Oxide rack will provide.

Eventually that might be the case, but I actually think there will be enough room for both companies to have healthy growth. Personally I think oxide will clean up in the enterprise space, whereas SuperMicro will focus more on the people building their own systems.

Enterprises are the ones building their own systems. Oxide and Supermicro are direct competitors.

Maybe in tech, enterprises are building their own stuff, but outside those companies large enterprises are largely either outsourcing(to AWS, or managed providers) or looking for solutions with minimal system maintenance...

I see oxide as a cloud in a rack, fairly hands off, whereas SuperMicro is a choose your own adventure book.

Personally, I want both companies to crush HPE and Dell.

Perhaps, but I would not count SuperMicro out. They sell rack-scale systems:

https://www.supermicro.com/en/solutions/rack-integration

I could not find any info on that page about whether the level of software and network integration is anything like Oxide’s product though. SuperMicro claims they can build 5000 racks a month, so that’s a lot of lunch for Oxide to each potentially.

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