Derek, you said "Here is the quote I concerned with":
>Intel chief Andrew Grove predicted much of the company's future growth
>will come from the server market, as well from as Intel's existing
>PC microprocessor business."
Read the words again.The term AS WELL AS, as used here, means that PC micro's will be involved with much of Intel's growth. Now, servers also will provide much of the growth. This is nothing new by the way. NT servers, based on Pentium Pro(s), built by the likes of Compaq, Dell, IBM, HP, DEC, Tandem, Amdahl, Unisys, Data General and a whole bunch more, are flying out the doors of these companies to customers. Dell, for one, has said their fastest growing segment is NT servers.
One reason why Sun hasn't gone wild is they have no NT server, and NT applications are growing a lot faster than Unix applications. Not exactly eating their lunch, but may get to be.
One thing I like about the server (and corporate PC) business is that, when they get really big for Intel, they'll help offset some of the cyclical aspects of the home PC business. Companies that buy servers for intranets, websites, etc. won't concentrate buying before Christmas or school opening. Instead, server biz should be more evenly distributed throughout the year. This should make for less ups and downs, earnings surprises to the downside, etc. Just straight up revs and profits.
So, Sonki, the server biz is a very good biz for Intel to be in. And, I'm not even going to say IMO.
Tony |
