What Does Skinless Server Mean?
Skinless servers are servers that are "stripped down" compared to standard models. They have fewer components in racks, motherboards and the outer frame to reduce material use, power consumption and size. They do not have the sheet metal covering common on servers, and are therefore known as “skinless.” This greatly reduces cooling needs, fuel consumption and maintenance expenditures.
Techopedia Explains Skinless Server
Many standard servers are being replaced by skinless servers due to their small size, low power requirements and simple structure. Skinless servers rely on a joint cooling and energy system, rather than the individual systems found on standard servers. Skinless servers have no outer covering, hence the name, and also lack racks and other unnecessary elements that only add to material and maintenance costs. They have an extremely lightweight rail and tray design for mobility, easy installation and low repair costs; hence they are economical for manufacturers as well as the user.