Seeking Alpha

To address the needs of the supercomputer/HPC market, Intel (INTC) plans to integrate networking...

To address the needs of the supercomputer/HPC market, Intel (INTC) plans to integrate networking and storage controllers onto future Xeon CPUs; the chip giant foresees both performance and space/power benefits. Intel also wants to create a new interconnect fabric for HPC systems by tying together the work of multiple product groups - product lines purchased from Cray and QLogic could help, as might the Fulcrum Microsystems acquisition. Intel's plans could pose a risk to Mellanox (MLNX). Update: Commenter York Maksik notes LSI's storage controller card business could also be hurt by Intel's plans. PMC-Sierra's (PMCS) Adaptec unit also competes in this space. (also)
Comments (14)
  • Intel has had a miserable track record with networking hardware/software, in the past losing billions in acq costs and lost IP (remember Level One?). Perhaps they have learned their lesson and can expand again.
    15 Feb 2013, 07:03 PM Reply Like
  • I think their track record is a bit more mixed than that. Their external, consumer/business facing, networking products didn't do so well, but think about Centrino and integrated Wi-Fi -- really changed laptop landscape (for a little while anyway).
    15 Feb 2013, 09:01 PM Reply Like
  • This is the rational step forward.
    15 Feb 2013, 07:47 PM Reply Like
  • Also may hurt LSI's storage controller business as well; hope there's room for both.
    15 Feb 2013, 09:18 PM Reply Like
  • I wonder if Intel would outright buy LSI at this point, given the level of integration that is going to be needed in datacenter solutions.
    15 Feb 2013, 10:19 PM Reply Like
  • Good point. RAID controller card makers might also have something to lose.
    16 Feb 2013, 01:04 PM Reply Like
  • Ashraf


    What would be the point?
    16 Feb 2013, 02:24 PM Reply Like
  • Intel has lost the luster .. their products are non innovative and the PC collapse is hastening their demise.. If Intel hopes to innovate, they better buy MLNX
    16 Feb 2013, 09:51 AM Reply Like
  • "Lost their luster and non-innovative"...???.... as far as CPUs go, leading the industry in die-shrink, and Tri-Gate? IIRC, competitors at this level can no longer 'backward engineer' or duplicate what Intel is doing at 22nm and below. Non-innovative indeed......This is the 'moat' even the Chinese can't get across or copy.
    16 Feb 2013, 05:24 PM Reply Like
  • zorro2828,


    Please tell me you're joking.
    17 Feb 2013, 10:48 PM Reply Like
  • what is this intc i7 "made in cn"?

    Intel Core I7 CPU with 3.47GHz 12MB Laptop CPU
    [Feb 17, 2013]
    Min. Order: 20 Pieces
    Trade Terms: FOB
    Intel Core I7 CPU with 3.47GHz 12MB Laptop CPU Product Features: Application: Laptop Type: Six Core Processor Type: Intel Core L2 Cache: L2 -...CPU frequency: 3460MHz. ...CPU Socket Type LGA1366 Socket
    [ CPU Related Products ]


    Shenzhen Weilindun Technology Co., Ltd.
    [Province:Guangdong, China]
    Intel Core I7 2600k
    [Feb 17, 2013]
    Unit Price: US $ 10.0-50.0 / Piece
    Min. Order: 10 Pieces
    Trade Terms: FOB
    Processor/CPU Number I7-2600K # of Cores 4 # of Threads 8 CPU Clock Speed 3.4 GHz Max Turbo Frequency 3.8 GHz IntelĀ® Smart Cache 8...Max
    17 Feb 2013, 11:08 PM Reply Like
  • Thanks Sam... once again .. not surprised.. Intel is a old, tired elephant that needs to be ignored!
    18 Feb 2013, 08:07 AM Reply Like
  • CPU's are like talking about 8 track. Intel stock, is moribund, and has a history of not being able to deliver .. Perhaps your worldview of PC's is still thought to be kool, we obviously have differing views on investment...Biotech, is where I make a lot of money, and MLNX has a product that is faster, market dominant and is backed by creative young Israeli engineers who have delivered technologically, but failed in providing insight into channel sales.. Suffice to say, Intel is an elephant... that was caught yet again sleeping in the mid day sun!
    17 Feb 2013, 08:17 AM Reply Like
  • Real easy to pick out who is short Intel.
    24 Feb 2013, 09:46 AM Reply Like
DJIA (DIA) S&P 500 (SPY)