Intel Gears Up For Data Center Business Battle

This week Intel Corp. declared a new range of microprocessors for information centers. This announcement has triggered up a clash with Advanced Micro Devices and others for the profitable venture of providing the chips that fuel cloud computing.

The new Xeon Scalable Processor chips offer far better support for computing applications of next generation such as driverless cars and artificial intelligence. This was claimed by Vice President of artificial intelligence products group of Intel, Naveen Rao to the media in an interview.

The chips are targeted at firms comprising Microsoft Corp., Alphabet’s Google, Amazon.com Inc. and others that function data centers with millions of computers, both to offer computing horsepower for users who do not wish to maintain and own their personal computer systems, as well as to fuel their own services.

The first data center to accept the new Intel processors was Google Cloud Platform. Google Compute Engine’s Project manager, Paul Nash, referred the deal as a deepening and expansion of our business with Intel.

But Intel will encounter rigid competition from AMD, its historic rival, which lately rolled out its personal data center processor for next generation devices. The huge Internet firms are also working hard for their own hardware experimenting and design with chips based on tech from ARM Holdings and others. This is done as a fraction of the attempt to push Intel to keep cost in limits.

An industry analyst, Martin Reynolds, claimed to the media in an interview that the latest Intel processor is an upgrade from its former generation with improvement on artificial intelligence workload, enhanced power efficiency, and more improved storage.

Reynolds noted that the largest danger for Intel may be its reliance on a comparatively minute number of operators for big data center.

“Now, the confront is most of our tasks are going to these major Internet companies,” he claimed to the media in an interview further saying, “and thus need for chips is dependent on how successful the firms are in the brutal battle for users who are shifting their computing to the cloud.”

Well, let us see if this move of Intel is able to help him to be successful or not.