US-based chipmaker Intel is bullish on the data centre business as the company has been receiving strong demand from cloud and communication service providers which are investing in setting up data centres.
US-based chipmaker Intel is bullish on the data centre business as the company has been receiving strong demand from cloud and communication service providers which are investing in setting up data centres. Globally, in Q3, Intel’s data-centric businesses grew 22% year-on-year and the Data Centre Group (DCG) vertical clocked revenue of $6.1 billion. Growth in India, which has witnessed a data revolution in the past couple of years, has been on the high side with the country figuring in the key growth markets for the business.
As per Rajeeb Hazra, corporate vice- president, DCG, Intel, the DCG vertical achieved record quarterly revenue, driven by strong demand from cloud and communications service providers investing to meet the explosive demand for data and to improve the performance of data-intensive workloads like artificial intelligence.
As a result of good momentum, the company has revised its total addressable market from $160 billion in 2021 to $200 billion in 2022 for its data-centric businesses globally. Hazra said India, as a market, presents a fascinating data driven transformation story. The country ranks at the top for mobile data consumption globally and there is also no other country that has digitised similar volumes of citizen data.
“We see tremendous opportunities in India for data, bound together by cloud-connectivity, which makes India a strategic region for our growth,” Hazra told FE. Intel believes that data analytics and artificial intelligence (AI) will have the maximum impact in India and globally. The majority of global data was created in the last couple of years but only 1 to 3% of this data has been analysed.
“The AI and analytics journey is just at the beginning and there is immense opportunity to derive value from the rapidly increasing volume of data,” he said. An astounding 90% of the world’s data was generated in the past two years. And analysts forecast that by 2025 data will exponentially grow by 10 times and reach 163 zettabytes.
Intel is inventing technologies and software tools that will advance the AI ecosystem making it possible to gain insight, anticipate needs and continuously learn from data at enterprise scale. This year marks Intel’s 50th anniversary and completion of Intel’s 20 years in India. Globally, Intel is on its journey to becoming a data-centric company. The company said its role is no longer supportive, but enabling cutting-edge technologies. “Our focus in the near future is to build our data centre business through multiple strategies, and grow our cloud business in the space of compute, networking, storage, and memory solutions,” he added.