Bloomberg is reporting that Google is thinking about designing their own server processors with the help of ARM! ARM Holdings Plc's shares rose on the news report and for good reason. Right now Intel controls over 95 percent of the market for server processors, but this could be the start of a major shift away from using traditional desktop/server processors for computing needs. Then again, Google could just be doing this to negotiate better prices for Intel or AMD server processors needed for upcoming server farms.
Intel shares dropped on this news as Google is the corporations fifth largest customer according to industry insiders. It is speculated that Google spends $500 million dollars a year on Intel server processors, so this is causing quite a stir in the PC market. AMD already has announced plans to use ARM-based designs in server processors. Simon Segars, ARM CEO, has said from the start that he saw big opportunities in servers and we now see where he might have been looking when he said that earlier this year.
Time will tell if Intel will get into the hardware design business, but if they do, ARM looks like a great company to do it with!