Use Case | Importing White Box Servers
White box servers give quantitative trading firms customization, low latency, and cost efficiency. But complex supply chains, sensitive proprietary algorithms, VAT exposure, and trade compliance requirements can leave shipments stuck in customs. TecEx delivers an end-to-end IOR and DDP solution for global white box server deployments.
TL;DR
- White box servers are unbranded, custom-built servers that give quant trading firms lower latency and lower costs.
- Components often carry different HS codes and countries of origin.
- One supply chain can trigger duties, tariffs, and taxes at three points.
- An IOR and DDP partner handles compliance, VAT, and cargo protection so deployments clear customs smoothly.
“TecEx helps quant trading firms deploy latency-sensitive infrastructure into global exchange colocation facilities without customs or compliance delays.”
– Tyler Parker, Senior Sales Associate at TecEx
Import Challenges for White Box Servers
The benefits of white-box servers make a compelling case for startups and enterprises alike; however, shipping them across borders is not straightforward. To ensure speed to deployment, it’s best to work with an expert in shipping this hardware.
Whether a company chooses to work with a white box server vendor, ODM, or assembly partner, brand-agnostic hardware creates a complex supply chain. A common scenario looks as follows:
- A Hong Kong-based ODM sources components from global suppliers to build proprietary servers for a client in America.
- The finished white box servers must be shipped to the client’s HQ in the US for encryption, cybersecurity measures, and software standardization. They now contain sensitive data and proprietary algorithms.
- The client has a multinational presence outside the US and requires a deployment solution into global exchange colocation facilities.
Multiple countries of origin. Three opportunities for taxes, duties, and tariffs. Varying export controls and import compliance requirements. In addition to these challenges, critical shipments require value protection and robust security measures to safeguard the IP they carry.
How TecEx Supports White Box Server Deployments
Customized hardware needs a customized shipping solution.
Each component of a white-box server has a different HS code and Certificate of Origin. TecEx offers unmatched expertise in the local trade regulations governing this equipment, ensuring meticulous trade compliance so your time-critical hardware clears customs smoothly. No delays, no downtime.
As your Importer of Record, TecEx enables quant trading firms with a global presence to accelerate infrastructure deployments in core, expansion, or remote markets without the costs, delays, complexities, or risks of establishing their own local entities.
Money saved on unbranded servers can all be added back by duties and taxes if you don’t structure your imports correctly. Whether your shipment requires duty deferment, tariff risk mitigation, or a temporary import structure, TecEx offers import VAT solutions to unlock cost savings.
Protect your high-value hardware from loss, theft, or damage. Our extensive security measures, combined with 110% Cargo Liability Cover, mitigate the financial and administrative burdens that unavoidable disruptions can cause.
What is a White Box Server?
A white box server is not manufactured by a name brand; rather, it is generic and brand-agnostic. A white box server can be customized and built in-house, custom-built by a white box supplier known as an Original Design Manufacturer (ODM), or built as a generic alternative by a white box server vendor. Opting for an ODM or vendor is often faster and may offer warranty protection for all or some components.
White box equipment encompasses more than just servers. It typically ranges across:
- Switches: ODMs install switches without the proprietary software; customers can choose their own software and operating systems.
- Servers: ODMs or vendors manufacture and supply customized, generic servers without proprietary vendor software, so customers can install their own software and network functions.
- CPEs: MSPs often provide and operate white box equipment at the customer’s network edge, where the system connects to external networks, typically in a managed NFV environment, hosting the VNFs on the device.
- Brite boxes: Network vendors offer branded, hardware-only commodity boxes that other vendors can run their own software on.
According to SNS Insider, the white box server market size is projected to reach $20.35 billion by 2032, with a growing CAGR of 15.58% over the forecast period 2024 to 2032.
What’s in a White Box Server
Think of a patented pharmaceutical drug versus its generic; the active ingredients are the same, only the name on each pill, and likely the price tag, differ. The same principle applies to a white box server; it contains the same key “ingredients” as a well-known server manufacturer’s server, just without the branding and markup.
The core hardware components in a white box server for quant trading typically comprise:
- Central Processing Units (CPUs).
- Memory (RAM).
- Network Interface Cards (NICs).
- Field-Programmable Gate Arrays (FPGAs) or dedicated accelerators.
- Storage, usually SSDs.
- Custom-selected server motherboards with BIOS tuning.
- Compact chassis.
- Direct liquid cooling systems.
White Box Server Benefits
Some of the most notable benefits of a white box server include:
Granular Customization
A white box server is tailored to your exact needs. Every component can be hand-picked for low latency, reliability, and scalability. Motherboard layouts and cooling profiles can be tailored, no vendor bloatware is installed, and rack-mount chassis can be optimally designed for exchange colocation facilities.
Optimized Costs
Components can be purchased from different suppliers for cost efficiency and strategically selected for tariff engineering in import locations like America. No brand name means no brand markups. Customizability means you only pay for what you need.
Simplified Replacements
Usually, when a server or node fails, an entire server must be removed and replaced. The customized build of a white box server enables the replacement or repair of individual parts rather than the entire server.
Redundant Server Environment
White box servers often use clustering techniques. This groups multiple servers together to act as a unified system, significantly minimizing downtime and ensuring high availability (HA) at all times. If one node fails, another takes its place.
Your White Box Server Deployment Partner
TecEx offers end-to-end white-glove delivery solutions that adapt to and streamline your supply chain, with upfront costs and lead times for transparency and predictability. As an extension of your capabilities, we simplify the standardization and prediction of international delivery costs across all of your vendors. Choose the hardware you need from any market without disrupting your existing supply chains or vendor relationships.
Hassle-Free Trade Compliance Solutions
As you can see from our wealth of knowledge, TecEx is your go-to partner for global trade management. With our trade compliance solutions, your IT supply chain will operate without hitting any roadblocks. We help you meet compliance requirements, navigate sanction changes, take advantage of free trade agreements, and more.
See the TecEx difference today.