Must be losing millions in the hundreds. Is product even close to competing?
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What the heck do you mean 'till Intel jumos in'? They are in already and ready to be disrupted. Unlike enterprise platforms where there are millions of end users and shifting to new hw architecture and new os really hurts where it has the most effect (ordinary users and entrenched tools), here in datacenters that can be hidden from users and infrastructure can be shifted slowly. Yes it also means time and hence $$ are needed. Ultimately it's up to the head honchos.
Qualcomm has a history of failing in infrastructure despite technical advantages.
It's no different here, Q will lay the groundwork for future ARM servers at a great cost, then fold when Intel fully jumps in, assuming ARM gets some real market share in the first place which is still in doubt.
Data Center is clearly struggling a lot; No one really wants it and the Q lawyers have yet to beat anyone over the head to take it in a significant way. Its a big fat cost looking ripe for cutting for that god of shareholder value.
Cev
That's how you start by offering a competetive product and creating an ecosystem around it. ARM ecosystem is not totally brand new. It just takes time to make a transition. And we are not talking about world domination, just taking a small bite initially and then slowly burrowing through the mountain of market share of the only sheriff in town who is holding data center operations hostage to their whims. With a litter bit of patience it can be done. Qualcomm has always taken a long view my friend and that's where it shines compared to avago.
No way Q can compete with Intel in DC. DC is critical for business, not a cellphone. IT is not going to take the risk to switch to something unknown.
you can't say its a commodity when there is one player with 85% gross margins!
The Qualcomm ARM based server chip uses half the power for equal processing compared to the other guys.
The other guys server product offering is more like an old actress who got many cosmetic surgeries over the years, the core continues to decay.
Mobile soc is also commoditized.
We have many good enough chipsets available apartment from Qualcomm one
Mark my words.. Qualcomm won't be able to make money in datacenter chipset
The value has moved at the upper layers
Previous reply indicates ignorance. If data center soc is commoditized what about the mobile one? There are many vendors offering a mobile ARM solution. Don't you see why q is investing in other areas? For datacenters there is only one player and you know who. ARM chips differentiate. And that thing about losing money, it's called initial investment in a major new undertaking before break even. In this field you can't get away without that. Even a mom and pop candy store needs time to break even and eventually make money.
I don't see any reason why datacenter project would survive.
They are trying to make something which is already Commoditized and volume based profit
Nothing new here really