Baidu Is Helping Disrupt the Server Market: Microsoft Corporation (MSFT), Intel Corporation (INTC)

Page 1 of 2

Baidu (BIDU)Baidu.com, Inc. (ADR) (NASDAQ:BIDU), often referred to as the Google Inc (NASDAQ:GOOG) of China, has adopted new, low-power servers from Marvell Technology Group Ltd. (NASDAQ:MRVL). A large tech company adopting low-power servers isn’t typically news, but in this case it’s certainly news for the chip sector. Baidu’s new servers are built around ARM Holdings plc (ADR) (NASDAQ:ARMH) chip designs, a key shift in server design. ARM dominates the smartphone chip market, providing the designs found in the majority of mobile devices, and now has eyes on the server market.

Importantly, Baidu isn’t the only one interested in ARM-based servers. Both Amazon.com, Inc. (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB) have looked into it, though both appear to be waiting for the next generation of ARM designs. The major sticking point for the companies is the availability of 64-bit chip designs, while the current generation is just 32-bit. Currently the 32-bit chips don’t stand up to their memory demands the but future designs will. Baidu is using the servers for storage, which requires less power than other operations.

According to both Marvell and ARM this is the first commercial deployment of a server built around an ARM chip. This is a huge step for ARM-based designs and a major milestone in the server landscape.

Traditionally servers are built around chips from Advanced Micro Devices, Inc. (NYSE:AMD) and Intel Corporation (NASDAQ:INTC). Both must be weary of ARM designs reaching into their stronghold, particularly since its designs already dominate the mobile space. All is not lost though, primarily due to AMD and Intel’s lead on 64-bit designs. For its part, Intel has been pushing the power consumption of its chips lower and lower; it may be able to erase the big advantage of ARM-based servers.

AMD has taken a different approach, opting to build servers that make use of ARM-based devices along with their more traditional line. This is a telling move, signaling the changes hitting the market.


Server Manufacturers Are Already Experiencing a Shake Up

More than two years ago Facebook started initiative that hits OEMs where it hurts, designing their own servers rather than letting Hewlett-Packard Company (NYSE:HPQ) and Dell Inc. (NASDAQ:DELL) take the reins. The initiative and its guiding foundation, called Open Compute, is focused on building efficient computing infrastructure at the lowest cost. This Ars Technica article takes a technical look at Facebook’s motivations for leading its own server design for those interested. The largest benefits are in power savings, cost savings, and the ability to mix and match chip suppliers, which ultimately leads right back to cost savings.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!