Hewlett-packard Will Launch Arm Processor Server To Challenge Intel

According to informed sources, Hewlett-Packard plans to sell servers based on ARM technology ot challenge Intel's dominance

. Informed sources said that HP is working with the Calxeda Company to develop chips. This will intensify the competition between ARM and Intel. Intel accounted for 90 percent share of the server market, while the ARM is planning to enter the 9 billion market through the low-power chip.

ARM's Vice President Michael Inglis said that one of the largest issues of the server field is energy management." But he said the company will not comment on speculations of the outside world before it officially announced the partnership. Calxeda's spokeswoman Laura Beck declined to comment. She said the company will be held product launch conference on November 1, but did not disclose details. HP's spokesman also declined to comment.

Calxeda hopes that through the technique that is widely used in the mobile phone industry to produce low cost and low power server chips. Server is being increasingly used in cloud computing centers, which provides remote computing capability for the users via the Internet.

Although Yingelisi declined to tell specific users, but he said the chips based on ARM technology will first be used to support basic Web access, then provide services for more powerful systems. Intel has begun to catch up with the pace of ARM in the smart phone market, whose technology is used in most mobile phones. Intel said the company's chips will appear in the phones in the next year.

ARM has also put pressure on Intel in other areas. The company is working with companies such as Qualcomm and Nvidia to develop chips based on ARM technology. It will be used for more Tablet PCs and equipment.

As the PC market is facing the challenge of tablet PCs and mobile phones, Intel has increased the dependence on the server business. Intel Data Center Group's revenue grew 35% in the last year and the PC sector grew only 21%. It is expected that the server chip market this year is about 90 billion U.S. dollars.

ARM's shares have risen39% this year. Its third-quarter sales rose 22% compared with the same period of the last year. While its profits doubled. HP is the world's largest PC maker. It is also Intel's biggest customer, and it contributed about 19% of revenue for Intel. Intel said the company's chips will appear in the phones in the next year.

by: Amanda Xia

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