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> 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 $1.1

> 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.

genmud 3y ago
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.
- grubbs 3y ago
  Dell won't even sell you "dumb" storage for zfs. I can get 1PB for less than 30k in a 60 bay SM chassis.
  - genmud 3y ago
    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.

genmud 3y ago

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.

grubbs 3y ago
Dell won't even sell you "dumb" storage for zfs. I can get 1PB for less than 30k in a 60 bay SM chassis.
- genmud 3y ago
  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.