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International Business Machines Corp (NYSE:IBM) New Servers To Cut Intel Corporation (NASDAQ:INTC)’s Share

Boston, MA 04/24/2014 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) becomes the target of International Business Machines Corp (NYSE:IBM) as the latter has launched its first-line of computers based on its new microprocessor chips to take sales from Interl.

Massive Strategy To Displace Intel

On Wednesday, International Business Machines Corp (NYSE:IBM) executed its year long plan to kick start its sagging high-end server systems. The company has introduced the servers at an attractive price coupled with enhanced performance with an aim to encourage manufacturers to produce compatible machines. With this, IBM plans to make is hard playing ground for Intel, whole chip technology is currently being used exclusively. Moreover, IBM has also partnered with many companies, one among which is Google Inc (NASDAQ:GOOG) to discuss plans to launch products compatible with Power8 chip technology.

 Better Than Intel

During the first quarter earnings call,International Business Machines Corp (NYSE:IBM)’s CFO, Martin Schroeter has highlighted that through repositioning of its Power line of servers would enable them to generate smaller but a profitable hardware business in the upcoming time. It is to be noted that IBM’s hardware segment recorded $660 million loss before taxes in the first quarter and $507 million in the year 2013. As per the company, its new technology is 2-10 times faster than its previous chips and can analyse data 50 times faster than that of the Intel’s latest technology.

IBM’s senior vice president in systems and technology group, Tom Rosamilia mentioned that the company has spent nearly $2.4 billion in the last three years to develop its Power8 chip technology. Currently, the company’s prospective clients count in Google Inc (NASDAQ:GOOG), which is at present heavily dependent on Intel chips, but is assessing the possibility of employing Power8 based hardware, as well. Most importantly, one of the executives from Google is heading  a foundation, in which various companies are the founding members, with the objective to drive this technology.

Published by Donna Fago

I believe in writing content Informing investors with the knowledge they need to invest better today- I have been following the markets for many years and was asked to join the team at recently due to my passion for the markets.

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