Microsoft switches up data centre chip choices

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Microsoft has begun ordering processors from Xilinx to power its data centres necessary for its Azure offering, according to reports. 

Bloomberg is claiming that Azure will use Xilinx as co-processors in more than half of its servers, with the new hardware 'replac(ing) chips made by Intel' and that Azure's servers were 'an exclusive for Intel's Altera unit'. However, it also said (and quoted a Microsoft representative) that Intel is not exactly out of the picture.

“There has been no change of sourcing for existing infrastructure and offerings,” according to a Microsoft spokesperson. Bloomberg says Microsoft will 'continue its relationship with Intel in its current offerings'.

We are yet to see what Intel has to say about all of this. Last week, it was reported that Intel had actually beaten analyst expectations – mostly with its PCs and data centre chips.

Intel has seen revenue from its data centre business rise to $6.14 billion this quarter, representing a 25.9 per cent jump, and trumping analyst expectations of around $5.89 billion.

The company did, however, add that it will be turning more towards the East, looking at China, in particular.

“We’ll be working with our domestic Chinese customers and our global [PC manufacturers] to adjust and adapt the supply chain to deal with constraints,” Swan told Reuters in an interview before holding a conference call with analysts.

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