How Intel Plans to Destroy the Legacy Data Center

By Rob Enderle, CIO |  Hardware

Earlier this week, Intel discussed its plans to forever change the data center as we know it.

Intel, a core technology maker, is now aggressively moving from servers into networking and storage and partnering with segment leaders such as Cisco Systems and EMC along the way. This could make the near future rather interesting.

Think RAID, But With Cheap Processors

For a while, I was convinced that Intel wouldn't catch this wave. Years ago, Microsoft began an initiative to rethink the data center as kind of a modular server. Applying a RAID-like concept to low-cost processors stood at the center of this effort. Replacing the "D" in RAID with a "P" would give any CMO a heart attack, so the concept never got a catchy name-but, on paper, it was poised to reduce computing costs dramatically.

Intel didn't like that Microsoft was using Atom processors for this and asked Microsoft to stop, assuming the folks in Redmond would switch to Core or, even better, Xeon. Microsoft, thinking Intel missed the "inexpensive" part of the concept, instead moved to ARM. Rather than prevent a move to a lower-margin product, Intel effectively promoted a move to a product that gave it no margins.

Intel, to its credit, eventually came around and has been working furiously to create a high-efficiency platform based on Atom. Companies such as Facebook are flocking to it; they say it provides the best capacity, lowest operating costs and highest efficiency for Internet service loads. (Internet services are still the fastest-growing opportunity for this class of device.)

Intel now reports that it leads the industry in performance per watt and optimization, which has let it get the most design wins and broadest software support-though on this last point, it certainly helps that x86 still dominates low-end, high-volume servers. That's a pretty impressive turnaround.

Rather Than Beat Intel, Cisco Joins 'Em

Originally published on CIO |  Click here to read the original story.
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