Intel to Exit Prebuilt Server Business, Sells Data Center Solutions Group to MiTAC

Intel, best known in the server space for its processors, networking equipment, and other components, is a small but well-respected company. Built server system business, Data Center Solutions Group. However, as Intel confirmed today, the days of Intel servers are coming to an end. As part of the company’s broader strategy to exit low-margin businesses, Intel now plans to stop selling servers and sell the remaining business to one of his partners, his MiTAC. .

in the first broken story serve the homethe server-focused website has reached out to Intel for comment on the sales rumor.

“In line with Intel’s continued commitment to prioritizing investments in its IDM 2.0 strategy, we have made the difficult decision to exit the Data Center Solutions Group (DSG). Solution provider MiTAC, a long-time ODM partner of DSG, has the right to manufacture and sell products based on our designs, ensuring that the DSG team and their stakeholders are supported during this transition We focus on.”

According to STH, most Intel DSG servers were sold outside the US and were especially popular in South America. Although the company didn’t have a broad lineup of server systems, it could meet general needs and built machines based on its own Xeon Platinum 9200 series CPUs for heavy-duty and high-performance computing applications, as well as GPUs and accelerators. We were even able to provide a system that supports . .

Interestingly, Intel appears to have been shrinking its server business for several quarters. First, we stopped promoting data center blocks and data center system systems, but continued to provide them. Second, he provided QCT’s Sapphire Rapids-based machine to a professional press for evaluation. Intel, on the other hand, has its own Sapphire Rapids-based server his machine.

After Pat Gelsinger became Intel’s CEO, the company abandoned many businesses, including its 3D NAND memory and SSD business, Optane SSD business, notebook modem business, and barefoot switch business. This is part of a broader effort by the company to focus on a few core businesses, where Intel has more control and ideally more profitability.

Exiting the server systems business is, by and large, one of Intel’s less surprising moves. This is a competitive business with much tighter margins than the individual components offered by Intel. Or, as ServeTheHome puts it succinctly, “Intel’s core, high-margin business here is selling silicon, not sheet metal.”

Intel’s DSG products should fit nicely into MiTAC’s product lineup. ODM, also Tyan’s parent company, has a much larger share of the server market and has multiple brands that can sell these systems.

sauce: serve the home, tom’s hardware