Cloud Computing: Intel’s Plan To Grow Its Share Of Datacenter Wallets

Grazed from ThePlatform.net. Author: Thomas Prickett Morgan.

The only number you need to remember about Intel’s Data Center Group business for the next three years is this one: 15 percent. That is the annual growth rate that general manager Diane Bryant says that the company can deliver, on a compound annual growth rate basis, “out through time,” although the presentations that the top brass from Data Center Group only did comparisons between 2014 and 2018.

To deliver such growth – and consistently year after year, given the uncertainties of the global economy and the tectonic shifts taking place in the datacenters of the world – would be a truly remarkable feat. Assuming that Intel makes its numbers for 2015 and grows Data Center Group revenues by 15 percent, the company has averaged 17.7 percent growth, with a few blips up and down from that average, and even more significantly, has been able to grow its operating income at nearly twice that rate…

Bryant did not mention this statistic at a recent Data Center Day event help for Wall Street analysts, but any time a company can grow operating earnings twice as fast as revenues – and for that matter grow a hardware business at anything approaching 15 percent in a mature market – that company is on to something. But the company has plans to expand its total addressable market, accelerating the buildout of public and private clouds with its Cloud for All initiative, getting a bigger chunk of the datacenter networking market proper through its Omni-Path and Ethernet products, and transitioning the fleets of specialized gear used by telecommunications and service providers to Xeon and, we think, possibly hybrid Xeon-FPGA architectures…

Read more from the source @ http://www.theplatform.net/2015/09/08/intels-plan-to-grow-its-share-of-datacenter-wallets/