On-premises server component sales are declining, even in the face of strong demand for on-premises cloud, Intel said.

Mitch Wagner, Executive Editor, Light Reading

March 1, 2017

3 Min Read
Private Cloud Is Very Popular Yet Nobody's Doing It

BARCELONA -- Mobile World Congress 2017 -- Reminiscent of the Yogi Berra quote about the restaurant that had become unpopular because so many people went there, Intel is seeing strong demand for on-premises enterprise cloud, even while conventional server component sales are declining.

What's going on? Enterprises are extremely interested in on-premises cloud, but not deploying it because it's too difficult, Sandra Rivera, corporate vice president and general manager for the Intel Corp. network platforms group, tells Light Reading.

Figure 1:

Enterprises want to keep mission-critical data on premises, Rivera says. Intel Corp. (Nasdaq: INTC), for example, isn't going to put its silicon fab manufacturing data on a public cloud for security, performance and latency. And many enterprises are in the same position with regard to their most important data.

And yet, while enterprises still comprise half of the data center group business last year, the enterprise server business is contracting in single digits. (See 'Troubled' Intel Rakes in the Dough.)

Want to know more about the cloud? Visit Light Reading Enterprise Cloud.

"Everyone is moving to cloud," Rivera says. Enterprises want to achieve resource pooling and other benefits. But they're moving to public cloud. "It's easier to move to the public cloud than to stand up and deploy on-prem cloud."

Figure 2: Intel's Sandra Rivera Intel's Sandra Rivera

Intel is working to simplify on-premises cloud deployments by contributing to open source projects, such as OpenStack, designed to make standing up clouds easier, and building broad ecosystems of providers to assist enterprises.

Intel is also developing CPUs, NICS, SSDS and FPGAs to develop high-performance fabrics to support clouds, with integration needed to package and create reference architectures and solution blueprints to eliminate trial and error in development, Rivera said.

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— Mitch Wagner, Follow me on TwitterVisit my LinkedIn profile, Editor, Light Reading Enterprise Cloud

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About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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