Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why HP's Moonshot Can't Kill Intel

Intel (NASDAQ: INTC  ) investors have worried about mobile chips making inroads into the server market. Now they're coming -- and it's not the end of the world after all.

Mobile processors have a lot in common with modern server chips. In both cases, power efficiency often matters more than raw performance. For smartphones, that means longer battery life on the supercomputer in your pocket. For servers, it's all about the data center's power and cooling bills. Thousands of less powerful but highly efficient chips can get more done than hundreds of monolithic powerhouses.

So when Hewlett-Packard (NYSE: HPQ  ) unveiled its long-awaited Moonshot server systems yesterday, Intel stockholders were on pins and needles. The Moonshot project has been rumored to use ARM  (NASDAQ: ARMH  ) chips made by privately held Calxeda. Will this be the first foot in the data center door for ARM and its legion of chip-building allies? Is this the end of Intel's hegemony in the server space, a fading Advanced Micro Devices (NASDAQ: AMD  ) notwithstanding?

Sliding another server into the 45+system Moonshot chassis.

Not exactly. Sure, HP will offer Calxeda-based systems later on. AMD will also make an appearance, using its highly integrated combinations of central processing cores and number-crunching graphics units. But you know who's first in line?

That would be Intel.

"The first HP ProLiant Moonshot Server is available today with the Intel Atom Processor S1260," says HP's website (emphasis mine). By the way, its site is already powered by Moonshot servers, handling an average of 3 million hits per day using no more power than 12 60-watt lightbulbs. No mean feat, I'd say.

HP claims that replacing traditional servers with equally powerful Moonshot systems can save you up to 89% in energy costs, take 80% less floor space, and cost 77% less. These numbers are "based on HP internal analysis," with no further discussion of the assumptions used. Your mileage may vary. Still, delivering results in that ballpark is an impressive feat that shows how efficient these mobile products can be when bunched together by the hundreds.

So the mobile revolution in the data center is under way. Intel is not only along for the ride, but is riding shotgun next to the first big-name driver.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, that market is maturing, and Intel finds itself in a precarious situation longer term if it doesn't find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2353575, ~/Articles/ArticleHandler.aspx, 9/26/2016 12:10:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,107.94 -153.51 -0.84%
S&P 500 2,149.97 -14.72 -0.68%
NASD 5,263.34 -42.41 -0.80%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
ARMH $0.00 Down +0.00 +0.00%
ARM Holdings CAPS Rating: ***
HPQ $15.05 Down -0.04 -0.27%
HP CAPS Rating: ***
INTC $36.64 Down -0.55 -1.48%
Intel CAPS Rating: ****
AMD $6.43 Down -0.12 -1.83%
Advanced Micro Dev… CAPS Rating: **