IBM launches Intel server challenge

@ 2013/08/07
IBM and a consortium of semiconductor players are planning to build the userbase for IBM microprocessors beyond its limited current market, essentially staking a claim on Intel's traditional territory.

Although IBM Power chips are primarly found in the company's own servers, a group of semiconductor companies are planning to open them up to licensing, with licensees then able to use IBM's designs in their chips. Nvidia is backing the plans, while Mellanox and Tyan are also on board.

This may in part be a reaction to a 25 percent year-on-year decline for Power based systems, the WSJ points out. Intel's dominance in servers, with its x86 chips, is challenged somewhat by IBM but revenues have declined.

If it can spur on the industry to accept further competition, IBM may be able to drive up revenues for Power.

IBM veep Bradley McCredie told the WSJ that the company "absolutely wants to get into a broader ecosystem, that is why we are doing this".

First from IBM will be Power8, which the company is expected to explain in further detail some time this month.

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