Why Intel Will Win With The New Data Center Solution
Intel (INTC) has introduced the Intel Enterprise Edition for Lustre Software. The product will enable an enterprise's data center to process a big data workload. In this article, I will explain how the rise in the global data center IP traffic will enable Intel to increase its data center group revenues by 2% with the new product. This factor will enable Intel to improve its price multiples.
Why will the company accomplish the feat? The global data center IP traffic is showing a growth. According to the Cisco Global Cloud Index, the worldwide data center IP traffic will quadruple over the next five years. Consequently, a data center will need the solution capable of processing a big data workload. Intel will benefit because its new product has the capacity to cope with this requirement. This will translate to an increase in revenue for its data center group and improved price multiples.
Intel's sales growth is inevitable. Its data center group is well-positioned to know the apt solution in a data center setting. This accounts for its revenue growth on a year-on-year basis in 2012. In the full-year results, the group reported revenue of $10.7 billion, up 6% from 2011. In the fourth quarter, the data center group reported revenue of $2.8 billion, up 7% sequentially and up 4% on a year-on-year basis. In the first quarter of fiscal 2013, the data center group reported revenue of $2.6 billion, up 7.5% compared to same period in 2012.
Intel And The Big Data Development
Intel has carried out a number of initiatives to strengthen its data center group over the past few years. It created the Intel Distribution for Apache Hadoop to provide a data management solution for any enterprise application that analyzes a massive amount of a diverse data. Intel collaborated with Dell and Revolution Analytics to establish the Big Data Innovation Center in Singapore. Intel also introduced the Silvermont Architecture to deliver the energy efficiency needed by the solutions in a