Designing Its Own Chips Will Give Google More Control

Google Inc (NASDAQ:GOOG) may be designing its own server processors using technology from ARM Holdings Plc. This came to light last week following various comments by GoogleJulie Kunstler, Principal Analyst, Optical Components, Ovum comments:

“In Ovum’s view, Google’s move is an extension of its data centre infrastructure strategy, driving the requirements and if it makes sense, building in-house. While it is too early to know Google’s plans, at a minimum, Google Inc (NASDAQ:GOOG) is researching server processor technologies and is likely to establish a new set of requirements for processor vendors.”

Google Inc (NASDAQ:GOOG) may be designing its own server processors using technology from ARM Holdings Plc. According to Ovum’s Data Center Networking Hardware 2014 Trends to Watch, Google’s possible move into processors makes sense. The hyperscale players are leading a revolution, driving hardware requirements, disrupting the traditional ecosystem.

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Points to note:

• Google Inc (NASDAQ:GOOG) has been designing its own data centers, driving hardware requirements from vendors such as Cisco.

• Designing its own server processors would provide the company with further control of its data centers.

• Possibly the tech giant is digging deeper into understanding the component level in order to drive server processor requirements. We saw this move at the hardware equipment level.

• While processor design takes time, money and skills, Google has shown its ability to recruit talent and it has the resources to license technologies.