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Supermicro’s Charles Liang talksabout integrating high tech

with his Earth-friendly vision.

Sept-SuperMicro-Cover 8/23/07 11:13 AM Page 1

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Since Charles Liang founded Supermicro in 1993, thehigh-end server manufacturer has been known for its cutting-edge products. Today, having grown an average of

36% each year and after completing an IPO in March, the com-pany is turning its attention toward a new goal: green computing.

“Each of our high efficiency servers save our customers up to$100 per year on their electric bill,” said Liang, president andCEO. Understandably proud of that achievement, Liang is per-haps even more excited about the products’ affect on climatechange. “Compared with traditional power supplies, which are75% to 80% efficient, each of our 90% efficient systems providea reduction of more than half a ton of carbon dioxide per year,”he said.

For example, Supermicro’s SuperBlade server can save up to 100watts over a traditional discrete 1U rack-mount server. “Thesesavings add up quickly when the SuperBlade chassis is fully pop-ulated with 10 servers,” said Liang. “By eliminating the overheadin 1U discrete servers and using high efficiency (up to 93%)power supplies, SuperBlade can save customers between $700and $1,000 per year in power, even more when you add inreduced cooling costs. At the same time, you’re reducing carbondioxide emissions by more than 5.5 metric tons—the equivalentof planting 1.7 acres of trees.”

This type of achievement is actually par for the course for thecompany, which is built on a foundation of innovation. In 1996,Supermicro was the first to bring to market a motherboard

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Keeping

GreenITSupermicro’s green computing initiative is the latest in a

series that’s kept Charles Liang and his team at the forefront

of the fiercely competitive high-end server market.

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high density computing, the company just intro-duced its SuperBlade 7U servers, featuringexceptionally efficient power supplies, thermalmanagement, and available bandwidth.

Delighting customersOf course, basing a company on innovationcan be a double-edged sword—let yourguard down for even a moment, and yourisk letting a competitor be first to marketwith a product. Liang’s answer to this chal-lenge is simple: make sure people are proudof their work.

Liang noted that the company investsmore than 50% of its resources in R&Dand engineering, stimulating a drive tocreate products that delight customers.“It’s important to let our employees know

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designed to handle Intel’s DP Pentium Proprocessors. In 2000, it introduced theSuperServer 8050, the highest performing quad server at that time, followed quickly by the world’s first socket Xeon motherboard.

Today, the company continues to push the limits of technology, introducing the 1U TwinSuperServer 6015T series, which supports twodual-processor motherboards in one chassis.“This system, introduced in Q4 last year, doublesthe density of today’s standard systems and shipswith a 90% efficiency power supply,” said Liang.

In the first quarter of this year, the $500 millioncompany introduced its UIO (Universal I/O)technology, an architecture that supports moreI/O bandwidth and more add-on cards per rack-mount server than competitor solutions. For

COVER STORY

Our engineers enjoy the

challenge. They are doing

something that will help them

make money, help customers

save money, and help our

Earth—they are very proud

of this.

word-of-mouth advertising of its extremely highquality products. “Limited resources and the factthat products sold themselves because of theirquality meant that we did not emphasize salesand marketing,” said Liang. “But now, as thecompany grows, we want customers to knowexactly what advantages we provide. Over thenext few years, you’ll see us become much moreaggressive in sales and marketing.”

One thing that won’t change is the company’srelationships with key suppliers in the industry.Liang noted that Supermicro’s position as a

leader in the industry means suppliers view thecompany as a launch partner. “Whether it’sCPUs or I/O controllers, those companies relyon us to test their quality and make sure theirproducts are ready for the market,” he said.

Liang believes these relationships are critical tothe company’s success. “Being very strong intechnology means companies continue tochoose us as a partner. That helps us get an edgeover the competition, and as we continue togrow, those relationships will remain extremelyimportant.”

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why we require such hard work and dedication,”he said. “People need a strong reason—for us,that’s helping customers. And that equates tohelping ourselves.”

The company’s focus on green computing dove-tails flawlessly into that philosophy. Today, engineers are not just developing products thatplease customers; they’re crafting systems thatreduce the Earth’s carbon dioxide levels alongwith saving customers money.

“Our engineers enjoy the challenge,” said Liang.“They are doing something that will help themmake money, help customers save money, andhelp our Earth—they are very proud of this.”

Liang is pleased to report that employees arehappier than ever after the company’s MarchIPO, which he said will allow Supermicro togrow even more quickly. “After 13 years of dedi-cated work, about 18 months ago, I felt ourproduct line was so strong that it was time togrow more quickly to make more money andhelp more people,” he explained.

To make sure everyone stays on the same pagewhen it comes to individual products and overallgoals as the company grows, Liang continues his10-year-long practice of holding a company-widemeeting each day. Liang said the meeting, whichincludes the company’s engineers, project man-agers, marketing personnel, and salespeopleworldwide, lasts 30 to 90 minutes and is part ofthe company’s unique culture.

“New hires sometimes ask why we do this,” hesaid. “They think it’s too muchlike Army training. But this is

how we keep everyone insync. We need everyone

to communicate so

that we can work harmoniously and effectively.Our industry is very dynamic, so there is alwaysplenty to talk about.”

Beyond word of mouthCommunication will continue to be key as thecompany heads into 2008 and grows bothdomestically and abroad. Unlike competitors,the majority of whom moved R&D, production,and logistics to Asia many years ago, Supermicrocontinues to employ about 85% of its workforcein the US and do final product integration inNorth America.

However, Liang said the company and the glob-al economy are reaching the point where thisstrategy is becoming cost prohibitive. “Our head-quarters here remains our first priority, and wewill continue to grow here,” said Liang, notingthat the company purchased a building at itsSan Jose location last fall and another in June.“But we have to make our products more costcompetitive. That’s why we’re expanding ourmanufacturing and logistical functions in Asia.”

The company is also vastly expanding its salesand marketing group, having relied mainly on

COVER STORY

SuperBlade can save

customers between $700

and $1,000 per year in

power, even more when

you add reduced cooling

costs. At the same time,

you’re reducing carbon

dioxide emissions by more

than 5.5 metric tons—the

equivalent of planting 1.7

acres of trees.

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Poised for growthLiang said that, currently, his team’s biggest chal-lenge is continuing to grow rapidly, especiallynow that the company is public. “So far, we feelquite comfortable. It’s challenging, but it’s ahappy challenge—at least at this moment,” helaughed.

Admitting that one reason the companyremained private until now was the need tohave the right senior management team inplace, Liang said the company as a whole isnow ready for rapid growth. “In the past, I wasable to personally watch every detail,” he said.“Now, the senior managers are responsible forwatching every detail, and they have a vestedinterested in making sure the business growsquickly.”

Unsurprisingly, Liang remains hands on when itcomes to managing and hiring. After beingscreened by an HR manager, each potentialemployee meets personally with Liang, who isknown for working 14- and 16-hour days.

Those new hires are joining a company poisedto take the next step in the high-end server market, introducing the SuperBlade, featuringhigh-bandwidth communication and the abilityto scale to 160 CPU cores per 7U enclosure, as

well as Supermicro Server Manager, a servermanagement application that will enter betatesting early next year.

Unquestionably, Liang and his team are up tothe task. “Sharing our vision with our peopleand with customers is what helps us keep ourmomentum going,” said Liang. “The more prod-ucts we sell, the more money our customers willmake, and the more healthy our Earth will be.This is a positive, clear mission for our people.” E

—Jill Rose

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