On November 28, 2019, according to Reuters, AWS, Amazon's cloud computing division, designed a second-generation data center processor chip with stronger performance. If the news is true, the chip will help Amazon reduce its dependence on Intel and AMD server chips.
According to a source, AWS's new data center chip uses ARM technology of Softbank group, which is at least 20% faster than the first generation ARM chip graviton. Lei Feng understands that the first generation ARM chip, graviton, is a server chip developed by Amazon and applied to the ec2a1 virtual server launched on November 26, 2018.
Today, cloud computing has become an important area for chip manufacturers to compete. In this area, Intel controls more than 90% of the server chip market, while other areas are covered by AMD.
It is understood that Amazon, Microsoft, Google and other cloud service giants are major customers of Intel's server chip. In 2018, Intel's Data Center Division contributed nearly half of the company's operating profit, and according to Intel executives, nearly 65% of Intel's data center chip revenue came from cloud computing and communication service providers.
Given Intel's monopoly position, most cloud computing companies try to develop their own chips to challenge Intel's dominance; Amazon cloud computing Department AWS is one of them.
Earlier, Amazon AWS launched the first generation of graviton chip, which is the first product line intended to replace Intel's Xeon server chip. However, Intel's Xeon chip still relies on its superior performance to resist the pressure of customers to reduce prices and increase prices year by year.
In response, Stacy Rasgon, an analyst at Bernstein, an investment bank, pointed out that Amazon's first arm chip did not seem to have an impact on Intel's data center business, which has continued to grow over the past year. But at the same time, he also said that those technology giants who spend billions of dollars on Intel and AMD every year and have few alternatives have the resources to develop stronger arm chips:
If it's just arm, I'm not worried, but if Amazon or Google invest in arm technology and master these technologies, it may cause more trouble to Intel.