He contends that revenue from ARM-based PC and server chips could be two years away.
It becomes a technical challenge, involving latency, compression and robustness, to shift the relationship from home PC and handset to always-on remote server and handset.
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Dell used this strategy almost flawlessly to dominate PCs--and, again, to attack the server business, Compaq in particular, with a handful of PC-based products in 1995.
Bartels points to the most recent government data released Friday that show a drop-off of around 2% in PC, server and peripheral sales for the third quarter of 2008 compared to the same quarter last year.
The move will bring the x86 processor architecture that dominates the PC and server business into direct competition with the ARM-based designs that now dominate the smart phone and tablet industry.
The PC and server segments are healthy and the demand for leading-edge technology will continue to increase for the foreseeable future.
While Intel dominates the PC and server markets, Intel has struggled to penetrate the fast-growing market for smartphones and tablets dominated by Apple and a score of manufacturers building devices around software from Google and processors from Nvida, Texas Instruments, and Qualcomm.
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On the components business side, demand for PC DRAM remained weak but growth of high value-added products such as server and mobile DRAM was constant due to increased sales of mobile devices.
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The PC maker is scrambling to rebuild its business around high-margin services and sophisticated server-room gear.
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By the company's count, a single combined thin client and blade server uses 44 watts of energy compared with an energy-chewing desktop PC's 80 watts.
Both the VMWare Server and Microsoft's Virtual PC 2007 are ideal for installing virtual machines on an Intel- or AMD-based PC.
Profitability in DRAM remained weak despite growth in global PC shipments in the high-single digit percentage quarter-on-quarter and a push in sales of mobile and server DRAM.
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