Featured in this episode of Chaos Lever
Wait, what? Intel makes servers? And therein lies the problem.
Our friend Pat G over at Intel is in a bit of a restructuring fervor with a goal to streamline the company and get it back on track as part of the IDM 2.0 strategy. As part of that strategy, Pat has made the decision to shutter the Data Center Solutions group within Intel, who were responsible for creating server designs and reference architectures for data center customers.
If you think of server manufacturers, Intel is certainly not the first to come to mind, despite providing so many of the components inside other vendor’s systems. As Intel narrows its focus, it has been shedding those components, with the end of Optane and the sale of its NAND flash tech to SK Hynix. Dropping the server product group entirely was the next logical step.
Will it be enough to stem the tide or are more cuts in the future? I suspect it will be the latter as Intel follows HPE’s model of cutting until you’re profitable. The Data Center and AI group that DCG was part of was the second biggest loser in 2022, down 15% YoY. The biggest was the Client Computing Group at 23% down YoY, and if I were in that group, I’d be feeling a bit twitchy at the moment.