Dell Joins Rival HP on Growing List of ARM Server Makers

From DailyTech: When it come to enterprise servers, information technology folks care less about precisely what architecture of CPUs are going in them, but more about the impact that any architectural shifts might have -- such as computing power, power efficiency, and compatibility.

The former two metrics -- computing power and power efficiency -- are pushing the world's top server makers to ponder a switch from Intel Corp.'s (INTC) veteran x86 architecture to ARM Holdings plc's (LON:ARM) self-titled architecture, ARM. The world's top server seller, Hewlett-Packard Comp. (HPQ), already made public its intent to make ARM servers. Now Dell Inc. (DELL) a top personal computer maker and server maker, has joined the list of server makers testing upcoming ARM offerings.

In an interview with Forbes, Dell's server solutions group general manager, Forrest Norrod, confirms the work, stating, "We've had ARM systems in our lab for over a year. If that’s what our customers demand that’s what we'll offer."

At one time such an open admission could have led to stinging retaliation on chip pricing from Intel. But in many ways the ARM alliance has benefited from the misfortune of Advanced Micro Devices, Inc. (AMD), NVIDIA Corp. (NVDA), and others, who accused Intel of anti-competitive monopolist bullying in the past. Today, under intense scrutiny, Intel is effectively barred from using anti-competitive measures to stifle ARM.

As a result, the tables have turned. While no one will deny that Intel still owns the server business (ARM servers have yet to ship at volume), the fresh presence of a strong third party is giving Dell, HP, and others a powerful bargain chip to force Intel to lower server chip prices. The message is clear -- if Intel's product is too expensive, a cheaper, equally powerful ARM solution could easily be substituted.

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