Intel pulls plug on server system design division
(2023/04/14)
- Reference: 1681427738
- News link: https://www.theregister.co.uk/2023/04/13/intel_data_center_solutions_group/
- Source link:
An Intel division responsible for designing and planning out server-grade systems is the latest victim on CEO Pat Gelsinger's chopping block.
This week the x86 giant confirmed it is shuttering its Data Center Solutions Group ( [1]DSG ) and will sell the rights to its blueprints to computer maker MiTAC. This group produces server designs and reference architectures for datacenter customers; Intel's Xeon processor family is separate and unaffected by the closure.
"In line with Intel's continued efforts to prioritize investments in its [2]IDM 2.0 strategy , we have made the difficult decision to exit our Data Center Solutions Group," an Intel spokesperson told The Register .
[3]
Under the plan, MiTAC would "have the right to manufacture and sell products based on our designs."
[4]
[5]
While MiTAC, and its subsidiary Tyan, may benefit from the sale, it's right to put this into more context. According to Counterpoint's most recent Global Server Revenue [6]report , MiTAC was the smallest ODM-direct player — a group that includes the likes of Quanta, Wiwynn, and Foxconn — to make the list, with server revenues of about $75 million in 2021. Counterpoint reports that Foxconn recorded server revenues of roughly $12 billion by contrast.
Intel didn't address The Register 's questions for specifics regarding ongoing support for its server platforms, stating only that the company was committed to ensuring the DSG team and stakeholders were supported during the transition. Whether that means they'll continue to honor the " [7]standard three-year warranty" on its systems, or whether that will now fall on MiTAC, remains to be seen.
[8]Why we think Intel may be gearing up to push its GPU Max chips into China
[9]Intel successfully ships an updated datacenter roadmap
[10]While Intel XPUs are delayed, here's some more FPGAs to tide you over
[11]Intel buries news of GPU cuts and delays in low-key Friday post
Speaking of systems, Intel's decision to kill off its server design division comes just three months after the corporation rolled out its 4th-gen Xeon Scalable processors — codenamed Sapphire Rapids — and a number of new single-and multi-node [12]systems based on the platform.
Intel's decision to exit the server system design space shouldn't come as much of a surprise. While the chip giant once produced a number of server components ranging from motherboards, Optane memory, flash storage, and networking, the microprocessor goliath has moved away from these markets over the past few years.
[13]
In 2020, Intl announced it would exit the NAND flash space and [14]sell its factories in China to South Korean memory slinger SK hynix. Meanwhile, last fall, Intel announced it was [15]killing off its Optane memory and storage unit after Micron ended production of the 3D XPoint memory used in the product.
That just left motherboards and NICs. A glance at Intel's most [16]recent earnings report reveals that while the Xeon giant's Networking and Edge Group fared better than most other departments, sliding just one percent year-over-year in Q4, its Datacenter and AI Group (DCAI) took an absolute beating, down 33 percent from the year prior.
With Intel trying to [17]curb spending by $10 billion a year by 2025, the company has already said it'll be making strategic cuts to secure its IDM 2.0 strategy. To date, Intel has [18]axed two research and development projects valued at roughly $1 billion, slashed investments in RISC-V development, [19]restructured its Accelerated Computing Group (AXG), and [20]killed off a decent chunk of its GPU roadmap.
[21]
And with Intel forecasting a 37-43 percent revenue drop in the first quarter of 2023, it's unlikely its now ex-server design division will be the last product line to face the chop. ®
Get our [22]Tech Resources
[1] https://www.intel.com/content/www/us/en/data-center/overview.html
[2] https://www.theregister.com/2021/03/24/intel_gelsinger_strategy/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
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[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.counterpointresearch.com/global-server-revenues-grow-17-yoy-2022/
[7] https://www.intel.com/content/www/us/en/products/details/servers.html
[8] https://www.theregister.com/2023/04/11/intel_gpu_china/
[9] https://www.theregister.com/2023/03/30/intel_dc_roadmap/
[10] https://www.theregister.com/2023/03/08/intel_fpga_agilex/
[11] https://www.theregister.com/2023/03/06/intel_delays_gpus/
[12] https://www.intel.com/content/www/us/en/products/details/servers.html
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[14] https://www.theregister.com/2020/10/20/intel_sells_nand_business_to_sk_hynix/
[15] https://www.theregister.com/2022/07/29/intel_optane_memory_dead/
[16] https://www.theregister.com/2023/01/27/intel_q4_2022/
[17] https://www.theregister.com/2022/10/28/intel_layoffs_results/
[18] https://www.theregister.com/2023/01/23/intel_liquid_cooling/
[19] https://www.theregister.com/2022/12/08/intel_builds/
[20] https://www.theregister.com/2023/03/06/intel_delays_gpus/
[21] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[22] https://whitepapers.theregister.com/
This week the x86 giant confirmed it is shuttering its Data Center Solutions Group ( [1]DSG ) and will sell the rights to its blueprints to computer maker MiTAC. This group produces server designs and reference architectures for datacenter customers; Intel's Xeon processor family is separate and unaffected by the closure.
"In line with Intel's continued efforts to prioritize investments in its [2]IDM 2.0 strategy , we have made the difficult decision to exit our Data Center Solutions Group," an Intel spokesperson told The Register .
[3]
Under the plan, MiTAC would "have the right to manufacture and sell products based on our designs."
[4]
[5]
While MiTAC, and its subsidiary Tyan, may benefit from the sale, it's right to put this into more context. According to Counterpoint's most recent Global Server Revenue [6]report , MiTAC was the smallest ODM-direct player — a group that includes the likes of Quanta, Wiwynn, and Foxconn — to make the list, with server revenues of about $75 million in 2021. Counterpoint reports that Foxconn recorded server revenues of roughly $12 billion by contrast.
Intel didn't address The Register 's questions for specifics regarding ongoing support for its server platforms, stating only that the company was committed to ensuring the DSG team and stakeholders were supported during the transition. Whether that means they'll continue to honor the " [7]standard three-year warranty" on its systems, or whether that will now fall on MiTAC, remains to be seen.
[8]Why we think Intel may be gearing up to push its GPU Max chips into China
[9]Intel successfully ships an updated datacenter roadmap
[10]While Intel XPUs are delayed, here's some more FPGAs to tide you over
[11]Intel buries news of GPU cuts and delays in low-key Friday post
Speaking of systems, Intel's decision to kill off its server design division comes just three months after the corporation rolled out its 4th-gen Xeon Scalable processors — codenamed Sapphire Rapids — and a number of new single-and multi-node [12]systems based on the platform.
Intel's decision to exit the server system design space shouldn't come as much of a surprise. While the chip giant once produced a number of server components ranging from motherboards, Optane memory, flash storage, and networking, the microprocessor goliath has moved away from these markets over the past few years.
[13]
In 2020, Intl announced it would exit the NAND flash space and [14]sell its factories in China to South Korean memory slinger SK hynix. Meanwhile, last fall, Intel announced it was [15]killing off its Optane memory and storage unit after Micron ended production of the 3D XPoint memory used in the product.
That just left motherboards and NICs. A glance at Intel's most [16]recent earnings report reveals that while the Xeon giant's Networking and Edge Group fared better than most other departments, sliding just one percent year-over-year in Q4, its Datacenter and AI Group (DCAI) took an absolute beating, down 33 percent from the year prior.
With Intel trying to [17]curb spending by $10 billion a year by 2025, the company has already said it'll be making strategic cuts to secure its IDM 2.0 strategy. To date, Intel has [18]axed two research and development projects valued at roughly $1 billion, slashed investments in RISC-V development, [19]restructured its Accelerated Computing Group (AXG), and [20]killed off a decent chunk of its GPU roadmap.
[21]
And with Intel forecasting a 37-43 percent revenue drop in the first quarter of 2023, it's unlikely its now ex-server design division will be the last product line to face the chop. ®
Get our [22]Tech Resources
[1] https://www.intel.com/content/www/us/en/data-center/overview.html
[2] https://www.theregister.com/2021/03/24/intel_gelsinger_strategy/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.counterpointresearch.com/global-server-revenues-grow-17-yoy-2022/
[7] https://www.intel.com/content/www/us/en/products/details/servers.html
[8] https://www.theregister.com/2023/04/11/intel_gpu_china/
[9] https://www.theregister.com/2023/03/30/intel_dc_roadmap/
[10] https://www.theregister.com/2023/03/08/intel_fpga_agilex/
[11] https://www.theregister.com/2023/03/06/intel_delays_gpus/
[12] https://www.intel.com/content/www/us/en/products/details/servers.html
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[14] https://www.theregister.com/2020/10/20/intel_sells_nand_business_to_sk_hynix/
[15] https://www.theregister.com/2022/07/29/intel_optane_memory_dead/
[16] https://www.theregister.com/2023/01/27/intel_q4_2022/
[17] https://www.theregister.com/2022/10/28/intel_layoffs_results/
[18] https://www.theregister.com/2023/01/23/intel_liquid_cooling/
[19] https://www.theregister.com/2022/12/08/intel_builds/
[20] https://www.theregister.com/2023/03/06/intel_delays_gpus/
[21] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZDjP6NezsVQamdKCJ1BvjQAAAMc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[22] https://whitepapers.theregister.com/
Re: The end of Intel white box servers?
Anonymous Coward
Sad to see them go personally, and their "vanillaness" was a feature not a bug for some of us, still I respect your position. I for one was always relieved to work with them in smaller deployments. No half assed java based mangement tools that only ran on IE 6. No bizarre screwdrivers needed. No cheapskate nonsense like saving the motherboard BIOS settings to a hard drive instead of flash.
And all of the drivers tended to just work out of the box. Extra points for that as some of my clients stretched them for years and you could usually just upgrade the OS to latest version without sweating vendor support windows.
Happy to keep buying them from someone it Taiwan as long as they play nice. It's been a great way to cut out a ton of graft from the major server vendors over the years. "oh you want an all flash storage box, let me tell you about our $8000 ssds..." I have shaved ten grand off server builds and ended up with a better solution at the end(money for cold spares on the shelf, not after 24 hrs of arguing with support to dispatch a tech with the wrong parts 4 hrs later. Stuff like that.
That said I can understand that missmatched guts could trip someone up depending on their use case. So if you have a good relationship with your rep and need matching hardware and firmware for the entire server farm, you may find better options elsewhere. Also the vmware HCL is the devil, and I never want to have to "fix" an unvalidated server config ever again. Dell can just take my money for that one, please.
The end of Intel white box servers?
I've had more than my fair share of experience with white box Intel servers. Can't say I'll miss them... they were always so generic that you didn't know exactly what you were getting. Long random string for a model number. Knew you'd get a halfway decent model of every chip needed, but hard to be specific. No integration to speak of, just the plainest vanilla EVERYTHING.
I can hope that their demise will mean vendors will have to switch to re-branding to much better integrated system from well-known server makers, but there's also the real possibility they'll switch to even more lackluster products from completely generic white box server manufacturers who will throw completely random parts/chipsets in each one.