HP Grows Efforts to Target IBM, Lenovo Server Customers

By Jeffrey Burt  |  Posted 2014-07-19 Print this article Print
HP Moonshot

According to market research firm Gartner, the top three server vendors all saw declines in their revenues and shipments in the first quarter. However, HP had the smallest declines in both revenues (2.3 percent) and unit shipments (7.9 percent), while IBM saw revenues fall 25.6 percent and shipments decline 27.8 percent, the analysts said.

HP is building out several programs aimed at expanding its server technology. The company more than two years ago introduced its Moonshot initiative to develop small, ultra-energy-efficient servers that are powered by a range of chips, from x86 processors from Intel and Advanced Micro Devices to ARM-based systems-on-a-chip (SoCs) from chip makers like Applied Micro. In addition, at its recent HP Discover 2014 show, HP executives also unveiled its Apollo line of supercomputers, including one that sports a water-cooling system.

It also was at HP Discover when executives for HP and HP Labs introduced an entirely new open-source server architecture dubbed The Machine that will include the company's memristor memory technology, custom processors, silicon photonics and its own operating system, a throwback to the days when HP, IBM, Sun Microsystems and others made their own components and OSes for their systems.

"There's a significant amount of innovation going on," Neri said.

IBM, which is retaining its Power server and mainframe businesses, is not standing still as competitors try to take its customers. The vendor has its own Website outlining what customers can expect during the transition of the x86 business to Lenovo, and noting Intel's $1 billion investment in innovation around the x86 servers.

At the same time, IBM officials earlier this month said the company will spend $3 billion over the next five years in projects to continue to shrink the current processor architecture to at least 7 nanometers as well as investigate what will replace that architecture when it reaches its physical limits. That will lead to new system architectures—from quantum computers to carbon nanotubes to graphene—which also will be included in the research.



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