Bloomberg News

ARM Standardizes Intel-Challenger Chips to Win Share in Servers

January 29, 2014

ARM Holdings Plc (ARM) has created a new standard for servers using its chip designs to make it cheaper and faster to develop products based on the company’s technology and help it gain market share.

With input from partners including Microsoft Corp., Dell Inc. and Hewlett-Packard Co., ARM has developed rules for building servers based on its 64-bit semiconductor architecture, according to a statement today by the Cambridge, England-based company.

The more powerful, 64-bit designs are a threat to Intel Corp. (INTC:US), which controls more than 95 percent of the market for chips in servers that use personal-computer processors. ARM, whose designs are found in chips that run Apple Inc.’s iPhone and iPad, is betting that the regulated designs will be cheaper to use and create a wider market for the chips.

“What’s really interesting is that there’s an opportunity to really change the dynamics in terms of the data center,” said Lakshmi Mandyam, director of server systems at ARM, in an interview. “We can bring choice and innovation into this market and also enable a broader deployment at ARM.”

The move is consistent with the Open Compute Project, the industry group created by Facebook Inc. to create more efficient ways to store data online, Mandyam said. The project’s members include Microsoft Corp., International Business Machines Corp. along with chipmaker Advanced Micro Devices Inc., which uses ARM architecture to build its products.

Facebook chief executive officer Mark Zuckerberg said his company saved $1.2 billion using Open Compute-based equipment instead of proprietary products.

To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


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