Home > Blogs > Here’s Why Intel Launched Xeon Processors
Intel India launched its new range of Xeon scalable processors. Sharing his thoughts at the launch program, Intel India MD, Sales and Marketing Group, Mr. Prakash Mallya said - “Intel Xeon Scalable processors will address the increasingly complex and varied needs of the data centre, enabling customers to deliver next-generation business and consumer experiences through unparalleled performance, security and agility.”
“Intel Xeon Scalable processors will address the increasingly
complex and varied needs of the data centre,”
- Prakash Mallya, MD, Sales and Marketing Group, Intel India
Tough Competition and a fall at the stock market
Intel claims ‘Xeon’ to be a faster by 65% than its predecessors. It will support ‘an existing and expanding range of emerging data centre and network workloads’. However, experts believe that the launch of Xeon is Intel’s way of surviving tough competition from AMD and Nvidia. AMD recently launched a new generation of high performance processors and their Epyc server chips are available at half of Intel’s mark-up price.
Talking in terms of AI, Nvidia is the front runner in the deep learning space and recently struck a deal with automaker Volkswagen. With Xeon, Intel too stepped in the AI arena, as the chip is capable of performing basic AI tasks.
As per a report published by Fortune Tech, Data Center sales for Intel was pegged at 6% in Q1 this year as compared to a 9% in the same period in the last financial year and 15% in the year before that. This has resulted in a 6% devaluation of stock price at the Wall Street.
Chipping in hopes and profits
The chip market has a greater yield in terms of profitability and this is where Intel saw a profit of 44% in the last financial year.
Source: Market Realist
The company chips in its hopes in Xeon for bigger pies of market share and a better stock price. It will only be a test of time to see how things turn out for the California-based tech giant.