Server Processor Top Position in Danger

By ServerWatch Staff (Send Email)
Posted Apr 8, 2011

Seeking Alpha reports that Intel (NASDAQ:INTC) may be challenged in its position at the top of the server processor hill. Competing with Advanced Micro Devices (NYSE:AMD) and Nvidia (NASDAQ:NVDA) in the PC microprocessor and graphics businesses, Seeking Alpha estimates that about 26 percent of Intel’s value comes from server microprocessors due to its supreme command in this market, and currently forecasts a steady decline in Intel’s server processor market share.

Intel may be on unsteady ground in the market.

"At cloud providers, their virtualized systems are now running at 80 to 90 per cent CPU utilization these days, according to Rozanovich, much higher than the 5 to 20 per cent utilization a typical x64 server had running a single workload. ‘When your CPU is running at that high utilization rate, HyperThreading doesn’t work,’ says Rozanovich. ‘The system doesn’t have time or the capacity to hyperthread. So now, people running normal virtualized server workloads are turning off HyperThreading on their Xeon-based servers, just like supercomputer shops have been doing for years.’”

Read the Full Story at Seeking Alpha

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