Wall Street thinks 'cracks' are forming around Intel's most important business

_Intel chips enjoy a near monopoly in the data-center business, but financial-research firm Bernstein doesn't believe that it will last long.

In a note published on Monday, Bernstein's analyst, Stacy Rasgon, argued that "cracks" are forming around Intel's data-center business, which generated $15 billion in revenue and more than half of Intel's operating income last year. With the decline in the PC market, Intel has made growth in its data-center business a priority in recent years.

"The trends we are noting now, albeit early days, suggest that some cracks to Intel's monopoly position may be forming," Rasgon wrote.

Rasgon noted that it won't be until 2020 when Intel starts to see competitive threats materialize. But he stressed that Intel's data-center business will see real challenges within the next three to four years, suggesting that it would be difficult for the company to reach its projected 15% annual growth._

Going... Going... Gone! ;-)

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tick tock tick tick tick tick --- BOOM.

Those that remain still have a few years to prepare to leave. It's a big-assship so it's going to take a while before it completely goes down.

tick took tick tick

The goldmine of x86 and Moores law has run out. CRB PSO and BK and his merry collection of tards have wasted a decade and tens of billions with NOTHING to show for it. What do they do, lay off 12k now with another 20k likely next year.

What the board should have done is fired PSO earlier, never hired BK but hey they did so another tick tock cycle and sadly time has run out.

Any one question, why is tick tock abandoned than, LOL

Considering our CEO is smoking crack, I'm not surprised. An untrained monkey would do better.

_Summary

Intel's data center business is about to come under attack by a new generation of ARM-based servers.
This new generation will be fabricated on 14-16 nm processes and be competitive in performance, energy efficiency, and cost.
I expect ARM eventually to win in the data center based on cost, just as it did in mobile devices._

Based on cost. Do not forget, there are zillions of ARM licensees around The World, while x86 has ONLY two: INTEL and AMD. This and only this will destroy/burn INTEL to the ground.

Time Will Tell

Don't want to believe me, LOL.

Here is another good read, poof goes the server business!

http://seekingalpha.com/article/3983132-intel-arm-servers-renew-attack

What shows the total lack of understanding of the leadership here is that the high margin cloud/server is the one everyone wants. That is the buyers from Google, FB, MS, and Amazon to the Qualcomm and others. To think of intel couldn't hold the x86 line in client nor break into mobile how and why should the story be different in the high end.

The funniest thing to me was the play that ARM and others are making in the high end is the exact same one intel made on others 20 years ago. Use huge volumes to find process and design improvements that Intel's plummeting x86 can't keep up.

Sorry a billion ARM will be sold by TSMC and Samsung to well south of 300 million x86. Matters little the profit the laws of large numbers one last time and will again.

Anyone that needs more than 5 years needs an exit strategy from intel even sooner if 10nm slips to 2017, LOL

@ibm - As of today, top supercomputer in the world is on China built with Chinese chips. It's only a matter of time before it trickles down to servers.

"China is also attempting to build a local ecosystem less dependent on Intel" writes Stacy Rasgon

One more nail in the coffin.

Margins have nowhere to go but down.

Any halfway competitive chip is going to crush Intel's gross margins.

Another excellent point is the cannibalizing of the enterprise market. Who the fcuk needs an exchange server anymore?

The world is better off now that the x86 monopoly tax can be destroyed. Everyone will be better off - well except Inte employees. You had a good run.

Smart engineers abandoned ship long ago.

Mediocrity is what remains.

If this ship sinks we will be all in trouble.

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Wall Street thinks 'cracks' are forming around Intel's most important business

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