Intel Growth Fueled by Data Center Business
Despite the strong showing of the Data Center Group, Intel executives slightly lowered the fourth-quarter forecast for the business as cloud-based companies reduce their orders. "Cloud enterprises tend not to do large purchases in the fourth quarter," Krzanich said, adding that while they have in the past, "in general they don't because the fourth quarter is their selling season so they don't want to disrupt their systems during the quarter." An analyst asked Krzanich about the possible threat posed by ARM-based chip makers in cloud environments. Most recently, Qualcomm earlier this month announced it has begun sampling its first server chips with businesses and demonstrated a pre-production version of a 24-core system-on-a-chip (SoC). The CEO said that Intel's history has been about dealing with competitors. "Our goal is always to continuously push the product performance, and the way we think about it is … what does it take to replace ourselves even, in this market, especially the data center," he said. "There will always be competitors, and our goal is to just consistently outperform [them], and there will be new entrants and old entrants all along, trying to win share away from us. That's going to be a norm."