White Paper

WHITE PAPER Building an Agile Future mrcy.com 3 THE RISING AND CONTINUING ADOPTION OF OCP The Open Compute Project is one of the most influential forces on the future of computer network and server hardware. OCP-based systems have replaced most of the vendor proprietary network systems that dominated just a decade ago. Now they are now well-positioned to do the same to proprietary server ecosystems, thanks to emerging edge server standards such as OCP open edge. With spending on OCP revenue rising from $1 billion globally in 2016 to an estimated $36 billion in 2026, those in industry that fail to offer server products with OCP-based open standards risk missing out on significant business opportunities or even being eliminated from the market. Similarly, organizations that continue to invest in the use of closed proprietary server equipment deny themselves the cost and efficiency savings enjoyed by competitors who have adopted OCP. This shift is not restricted to a specific industry, with the significant increases in OCP investment coming from sectors such as education, energy and utility, financial, government, health care, manufacturing, media and entertainment, retail, transportation and more. WHY OCP MATTERS TO THE DOD The DOD's Modular Open Systems Approach (MOSA) mandate and strategic framework is meant to enhance flexibility, interoperability and upgradability by requiring the use of modular components and open standards in future systems. This approach benefits both users and developers because it promotes cost-effective and timely integration of new technologies, reduces the time and expense of system development and maintenance, and facilitates collaboration among a diverse set of stakeholders. As such, OCP and MOSA have common goals: promoting the development and use of open and modular systems to drive innovation and reduce supply chain risks. With both initiatives emphasizing modularity, interoperability and adherence to open standards as key principles, users and organizations can leverage the principles and methodologies of OCP under MOSA and future-proof their infrastructure, streamline maintenance and integrate flexibility for their components. For the DOD, adopting open standards such as those from OCP could lead to the following benefits: ▪ Improved supply chain stability: Open standards can help defense organizations evaluate suppliers and select those that meet stringent performance and security requirements. This minimizes the risk of delayed deliveries or faulty equipment that could jeopardize mission success. These standards also foster increased collaboration and information sharing among allied forces, contributing to a more cohesive and effective joint defense strategy and a streamlined military supply chain. ▪ Enhanced adaptability: The procurement process is shortened because open standards allow government purchasing organizations to readily identify compatible solutions from a wide array of suppliers. This ensures that military programs can rapidly adopt new technology, meet crucial milestones and timelines, and maintain a strategic advantage in response to emerging challenges. It also enhances system interoperability, reducing the time and resources spent on integrating disparate technologies. ▪ Improved affordability: Adhering to a common framework allows suppliers to produce components that cater to a broader market, optimizing manufacturing processes and reducing unit costs. As more organizations embrace open standards, the demand for compatible products and services should also increase, potentially driving costs lower. ▪ Increased readiness: Defense agencies have access to a wider pool of developers and suppliers when using open standards, enabling rapid integration of innovative technologies. Interoperability between various systems and platforms is also significantly improved, facilitating seamless communication and collaboration among suppliers and integrators. ▪ Enhanced capability: Open standards lower the entry barrier for technology insertions, allowing industry to rapidly develop new capabilities and end users to choose a module combination that is best suited to the mission at hand. 16 2020 CALENDAR YEAR ACTUAL PROJECTED REVENUE IN $ BILLIONS 0 5 10 15 20 25 30 35 40 10 2019 2.6 2018 1.2 2017 1 2016 18 2021 36 2026 33 2025 29 2024 26 2023 23 2022 OCP-RECOGNIZED PRODUCT REVENUE, WORLDWIDE 1

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