Their energy efficiency will allow them to keep their small foothold at least

Oct 2, 2013 08:55 GMT  ·  By

When it comes to the server industry, ARM Holdings doesn't seem to abide by dry logic much when making its forecasts, though some might say optimism is not a sin, so it's all fine. The following is an outline of its current stance and expectations.

Or rather, the following is a summary of the latest marketing report on the matter conducted by IHS iSuppli analyst firm.

IHS has found that ARM has a very, very small stake in the server industry even now, probably because 64-bit support is a very recent thing.

In fact, it will take years, by 2017 really, before ARM Holdings manages to secure 5% of the total server space.

A significant rise from last year's zero, to be sure, but definitely not a monumental surge.

Then again, it's not like anyone expects a miracle. Not when most existing installations are still meant to last for a decade or more, living off the occasional upgrade.

At least the overall server industry is expected to progress well, unlike desktops and TVs. By 2013, there will be 13.1 million units, indicating a CAGR (compound annual growth rate) of 6.5% from 9.8 million units in 2012.

Intel continues to show a total lack of worry, although it does release statements about its confidence from time to time.

The only area where it really might have to work hard is that of micro-servers, since energy efficiency is a key factor for them, and ARM has it beat there.

Intel's initial micro-server concept was revealed in 2009, but it worked hard in the meantime, introducing 64-bit atom-based server chips this past June.

Moving forward, ARM technology will need to put a lot of work into the new 64-bit architecture of Cortex A50-series chips and beyond. Calxeda form Texas and Advanced Micro Devices are its key supporters, though Applied Micro Circuits Corp. and Marvell Technology have adopted its ideas as well.