- With servers running IBM's (IBM -2.2%) Power CPUs (sales -25% Y/Y in Q2) losing share to systems using Intel's (INTC -0.5%) Xeon server CPUs, IBM is forming the OpenPower Consortium, an alliance through which Big Blue will license its Power architecture and related technologies to 3rd-parties, in an effort to create a broad IT hardware ecosystem around them.
- Initial partners include Nvidia (NVDA - its GPUs and CUDA computing platform will support Power), Mellanox (MLNX - InfiniBand hardware support is a good bet), Google, and Taiwanese server OEM Tyan,
- Google and Tyan's support is noteworthy, given Google and many Internet peers have spurned IBM and other server giants in favor of Intel-based commodity gear made by the likes of Tyan to the specifications of Internet/cloud firms.
- Google: "The consortium has the potential to establish Power architecture as a viable option for applications running within Google's data centers." Software support remains a near-term challenge.
- In downgrading IBM to Underperform, Credit Suisse cites mainframe and (Power-based) UNIX hardware headwinds, weakening free cash flow, and a spending shift towards cloud services.
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IBM partners to broaden Power CPU reach; more on CS' downgrade
Aug 6 2013, 12:30 ET