Applied Micro Circuits Ships Microserver Chips in Challenge to Intel

Applied Micro Circuits Ships Microserver Chips in Challenge to Intel

Connected Micro Circuits has started delivery another sort of low-power server chip that may challenge heavyweight Intel in cutting-edge data centers.

The Sunnyvale, California, organization frustrated Wall Street on Tuesday with first financial quarter income and second-quarter income standpoint that missed desires because of a declining legacy business, sending its imparts 4 percent lower tafter hours.

Be that as it may Applied Micro Circuits additionally reported it is delivering its new X-Gene "microserver" chips, made with intellectual property licensed from ARM Holdings, whose  low-power technology is widely used in smartphones.

In the quarter that finished in June, Applied Micro Circuits remembered its first income from the chips - around a $1 million - and the company said it expects "meaningful" revenue from the chips in the quarters finishing in December and March as shipments build.

While microservers have yet to be seriously received, proponents say data centers can be made more cost effective and energy efficient by utilizing them rather than Intel's sturdy server chips.

In January, Facebook Inc hardware guru Frank Frankovsky lauded low-power server technology and said he anticipated more noteworthy decision of processors.

Microserversat first will be most suited to data centers run by major Internet companies and for use in high-performance computing, proponents say.

Intel executives in the past have said microserver chips being produced by Applied Micro Circuits, Advanced Micro Devices and other little opponents were problematic and not a genuine risk to its server chip business.