Tuesday, 15 October 2013

Will Google Ever Crash the Gates of Intel's Server-Chip Fortress?

Intel (NASDAQ: INTC  ) didn't start off as the undisputed leader of server processors, but once the company set its sights on servers, it quickly tightened its iron grip on that market segment and squeezed out all competition. Today, Intel holds a seemingly insurmountable 96% share of the server processor market, but if recent reports are true, this might be the chip king's high-water mark. With the PC market already in decline and no clear path to mobile dominance yet laid down, this could be very bad news for Intel indeed.
Rebellion of the online kingdoms
By Intel's own reports, search giant Google (NASDAQ: GOOG  ) is already its fifth-largest customer, with annual spending estimated at half a billion dollars by FBR Capital Markets analyst Christopher Rolland. However, rumblings are now spreading through the tech world that Google itself -- which operates more than 1 million servers in its quest to be the gatekeeper of the world's information -- wants to build chips of its own to more efficiently power its massive server operations. Read More : INTC

No comments:

Post a Comment