Can Hewlett-Packard and Intel Generate Momentum from This Project?

Hewlett-Packard (NYSE:HPQ) has launched a low-power server platform, called Gemini, targeted at workloads that don’t require the strength of a traditional server processor. The first implementation of the platform will use an upcoming Intel (NASDAQ:INTC) Atom processor code-named Centerton. In the future, HP plans to add support to different processor types, including those of ARM (NASDAQ:ARMH).

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The server will target workloads such as serving up web pages, data analytics, running distributed memory caches, and server hosting environments, according to Paul Santeler, the general manager of HP’s hyperscale business unit.

Gemini has been manufactured to use as little as one-tenth the power of a more traditional x86 server and occupy one-tenth of its space. The first of the servers are being tested by customers in HP’s labs and will go on sale later this year, according to Santeler. HP said Gemini gets its power savings in part through low-power chips and reduces additional power consumption through the use of shared components for functions like networking, management and cooling.

Intel’s Atom chips were initially designed for mobile use, but are increasingly being used in servers that handle smaller workloads.

Shares of Intel (NASDAQ:INTC) are up 11 cents at $27.62 per share, while shares of H-P (NYSE:HPQ) are trading higher 35 cents at $21.16 per share today.

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