Intel to Exit Prebuilt Server Business, Sells Data Center Solutions Group to MiTAC

Whereas Intel is greatest recognized within the server area for his or her processors, networking gear, and different elements, the corporate additionally has a small however revered prebuilt server system enterprise, the Information Heart Options Group. Nonetheless, as confirmed by Intel at present, the times of Intel-built servers are coming to an finish. As a part of the corporate’s broader technique to maneuver away from low-margin companies, Intel now plans to cease promoting servers and can promote the stays of the enterprise to certainly one of its companions, MiTAC.

In a narrative first damaged by ServeTheHome, the server-focused web site reached out to Intel for a remark relating to rumors of the sale. Intel, in flip, responded with an official remark, confirming that the rumors are true.

“Consistent with Intel’s continued efforts to prioritize investments in its IDM 2.0 technique, we’ve made the troublesome choice to exit our Information Heart Options Group (DSG). As a part of this plan, MiTAC, an edge-to-cloud IT options supplier and longstanding ODM accomplice of DSG, can have the appropriate to fabricate and promote merchandise primarily based on our designs. We’re centered on guaranteeing the DSG staff and its stakeholders are supported throughout this transition.”

Most of Intel DSG servers have been bought exterior of the U.S. and have been significantly well-liked in South America, in line with STH. Whereas the corporate didn’t have a broad lineup of server methods, it might fulfill basic wants and even supplied machines primarily based on its distinctive Xeon Platinum 9200-series CPUs for heavy responsibility and high-performance computing functions in addition to methods with GPU and accelerator assist.

Apparently, but it surely seems to be like Intel has been winding down its server enterprise for a number of quarters now. First, it ceased to push its Information Heart Blocks and Information Heart Programs methods, but stored providing them. Secondly, it provided QCT’s Sapphire Rapids-based machines for analysis to specialised press. In the meantime, Intel does have its personal Sapphire Rapids-based server machines.

After Pat Gelsinger grew to become the chief govt of Intel, the corporate deserted a variety of companies, together with 3D NAND reminiscence and SSD enterprise, Optane SSD enterprise, pocket book modem enterprise, and Barefoot switching enterprise. This has been a part of a broader effort by the corporate to deal with fewer core companies, the place Intel has extra management and, ideally, higher profitability.

Exiting the server system enterprise is, on the entire, certainly one of Intel’s much less stunning strikes. It’s a highly-competitive enterprise with much more restricted margins than the person elements Intel supplies. Or as ServeTheHome succinctly notes “Intel’s core, high-margin enterprise right here is promoting silicon, not sheet steel.”

Intel’s DSG choices ought to match properly into MiTAC’s lineup of merchandise. The ODM, which can be the dad or mum firm of Tyan, has a a lot bigger share of the server market and a number of manufacturers below which they will promote these methods. 

Sources: ServeTheHome, Tom’s {Hardware}