Server chips business turned out to be the sweet spot for Intel during FY 2016-17. Intel continued to increase its footprint in the data center market, with most of the data centers powered with its x86 chips.
However, the struggling PC market compelled it to walk the extra miles and look out for more avenues for business generation. Globally, the revenues in the personal computer processor segment grew 12%, although the PC market moved southward.
Domestically, the company’s revenues rose by 6% in FY 2016-17 to 6,969 Crore as against 6,575 Crore in FY 2015-16.
Intel has been trying to expand into different portfolios that include smart devices and connected computing devices. It has also entered into the memory chips segment to mitigate the effects of the falling PC market.
Of late, the company announced a new line of microprocessors for data centers and such chips power cloud computing.
At the same time, in the domestic front, the company is massively cashing in on the current trend of digitization. The company believes that GST is a good opportunity for technology adoption for SMEs and as a result, the PC penetration may look up in the days to come.
The company is also playing an instrumental role with the Ministry of Human Resources Development for PC penetration in the country.
It is also aggressively working towards bringing in artificial intelligence (AI) and is mulling tie-ups with companies using AI. The company has inked agreements with various health and education providers.
The new Xeon Scalable Processor chips offer next-generation computing applications such as artificial intelligence and driverless cars. These processors help in delivering the needs of the data centre and the company claims these processors will take care of the modern day needs of the data centers.
Besides, Intel is also planning to invest 1,100 crore in its upcoming R&D centre in Bengaluru, which shows its will to fight aggressively with other tech giants such as Oracle, HP among others.
—PRAKASH MALLYA MD, South Asia