Intel drops the server business


In its effort to reconfigure (and reduce costs), Intel is separating from several activities deemed non-strategic. We remember the Optane division in particular, but the movement seems to continue. It is theData Center Solutions Group (DSG) division that is now in the process of being sold. So don’t get confused: Intel is not abandoning its Xeons at all, but its business that has been designing and manufacturing complete servers for years. Blue generally uses chassis from Chenbro and components in partnership with Tyan. And right now, some sources think to know that Intel is finalizing the complete transfer of this activity to MiTac, the parent company of Tyan. If nothing official is announced for the moment, the specialized site STH tried to get an indication or a trend from Intel and to the general surprise, the official interlocutor has very clearly confirmed the transfer.

Intel lâche le business des serveurs
A full range of servers exists at Intel

Intel is ditching its servers to continue its IDM 2.0 strategy

In line with Intel’s ongoing efforts to prioritize investments in its IDM 2.0 strategy, we have made the difficult decision to exit our Data Center Solutions Group (DSG). As part of this plan, MiTAC, an edge-to-cloud computing solutions provider and long-time DSG ODM partner, will have the right to manufacture and sell products based on our designs. We are working to ensure that the DSG team and its stakeholders are supported during this transition.

This divestiture is not really a surprise if we follow Pat Gelsinger‘s logic of refocusing Intel on chip manufacturing. The server business is a drop in the bucket of the company’s sales. It is difficult to hope for growth in this sector, which is dominated by Dell, HP and others, who are also major CPU customers.