In a move to diversify away from stagnating PC market, struggling semiconductor manufacturer, Advanced Micro Devices (NYSE:AMD) announced that it will be lunching energy-efficient server platform focused on vast data and cloud computing—the first major result of its acquisition of SeaMicro.
According to AMD, the latest technology will work with both Intel Corp. (NASDAQ: INTC) and AMD processors and will have lot more bandwidth even as energy consumed will be lower compared to its previous products.
In March, AMD acquired the Silicon Valley start-up for $334 million as the company wanted to expand its presence in smaller, energy efficient computer servers. Energy efficient server platforms are expected to be in great demand as internet services grow and corporates look out for alternatives to lower their electricity bills.
AMD’s growing interest in low-power server comes amid rising dominance of ARM Holdings-whose energy efficient technology is found in almost every smartphones and tablets. ARM has now also started to focus on data centers—a market traditionally controlled by powerful “x86″ chips manufactured by AMD and Intel.
Now, both Intel and AMD are putting concerted efforts to diversify away from conventional PC market as more and more users prefer smartphones and tablets over PCs.
AMD is now planning to sell its chip technology along with SeaMicro’s platforms to its corporate partners such as Hewlett-Packard Company (NYSE: HPQ), Dell Inc. (NASDAQ: DELL) and International Business Machines Corp. (NYSE: IBM).
The company claims that the platforms consume a quarter of the power and occupy only a sixth of the space compared to typical servers that make up the massive “farms” that firms now keep.
Meanwhile, AMD also announced that it will be investing in CiiNOW, a maker of cloud gaming technology which allows game publishers, retailers and carriers to tap into the ever-expanding video game industry, projected to reach $81 billion by 2016.
AMD, through AMD Ventures, will put money in this innovative software company since, according to AMD, this software has a large market exposure and combining AMD technologies with it will generate better end-user experiences.
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