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IBM partners to broaden Power CPU reach; more on CS' downgrade

  • 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.
  • Previous: Furloughs for U.S. hardware workers
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Comments (2)
  • fingel
    , contributor
    Comments (71) | Send Message
    This is interesting. Looks like IBM is taking a page out of ARMH's book. Licensing their architecture to others could be an interesting development in the server space. I wonder if Apple would consider licensing the architecture in order to design their own chips? They used to use power chips before switching over to Intel so I don't think updating OSX to run with those chips would be that difficult. They seem to want to pull everything in-house so this wouldn't be inconsistent with their philosophy.
    6 Aug 2013, 01:21 PM Reply Like
  • stoj
    , contributor
    Comments (437) | Send Message
    IBM is already lending out "calculating power", via cloud-like sharing. That is the only way to move out of it's hardware death-trap, which will soon only merit calculations per energy cost. ( regardless of brand-name or assurances )
    6 Aug 2013, 04:45 PM Reply Like
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