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February 08, 2013

Low-Energy Processors are the Future

By Jody Ray Bennett, TMCnet Contributing Writer

Low-power processors are the future, claims Applied Micro Circuits Corp through Yahoo News, with large cloud data center users such as Facebook,, and Google (News - Alert) taking up a good half of their business by the year 2016.  

The energy-efficient microservers being produced by AppliedMicro (News - Alert) have bounded ahead of their fellow energy-efficient producers as AppliedMicro are the first to utilize 64-bit features among the competition relying on technology of Britain's ARM Holdings license.  Though the energy-efficient chips miss out in brute power, data centers may use many of them to create vastly more computing power with less energy consumed in comparison to the standard use of several powerful Intel (News - Alert) servers.  Currently, such chips are commonly used in smartphones and tablets, but producers are also focused on takeover of the server market.

Gargus of AppliedMicro has announced confidence in the new microchips, claiming the adoption of their use by large cloud data users such as giants Google not an "if, but when."  Microservers make up only 0.2 percent of total server shipments of 2011, but according to IHS (News - Alert) iSuppli the number should grow upwards of 10 percent come 2016.  Energy costs often make up half or more of a data center's cost of operation, and with the addition of higher demand for more data processed via remote cloud data centers, the implications for data server companies to make the switch to the more powerful and more energy-efficient microservers are great.  In keeping a virtual monopoly on the server market, Intel created its own take on a low-energy data center chip and have announced selection for more than 20 impending projects with a focus on servers, communications, and microchips.

AppliedMicro is expected to have a $195 million gain for the fiscal year and is working on two generations of chips; one that is 40 nanometers and a more advanced chip at 28 nanometers.  Though AppliedMicro is ahead of the game with 64-bit technology, Samsung (News - Alert) Electronics and Qualcomm, companies that already use microchip technology in their products, could pose a threat to AppliedMicro should they enter the microserver market.

Edited by Rich Steeves
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