Story image

Intel Data Center Group revenue grows 5% to $4 billion

22 Jul 16

Intel has announced its second quarter earnings, bringing in GAAP revenue of $13.5 billion, a 3.3% increase in year over year growth since Q2 2015. The company has also generated $3.8 billion in cash, $1.2 billion in dividends and spent $804 million to buy back 26 million stock shares.

Meanwhile, Intel's Data Center Group revenue has increased 5% year over year at a total of $4 billion.

"Second-quarter revenue matched our outlook and profitability was better than we expected. In addition, our restructuring initiative to accelerate Intel's transformation is solidly on-track. We're gaining momentum heading into the second half. While we remain cautious on the PC market, we're forecasting growth in 2016 built on strength in data center, the Internet of Things and programmable solutions," says Brian Krzanich, Intel CEO.

Intel's Data Center Group comprises two categories: its platform and "other". The report says that in July 2016, its platform's net revenue has increased to $3.7 billion, up from its $3.5 billion in June 2015. Its 'other' category accounts for 309 million in net revenue.

Its operating income for its Data Center Group has shrunk to $1.77 billion, a decrease from $1.8 billion in June 2015.

In May 2016, Intel released a white paper detailing how its data center strategies have included a number of intiatives, including new system software that has boosted server capacity, deploying more than 13,000 SSDs that has increased server capacity by 27%, new storage capabilities and more than 60,000 network ports.

Intel says its focus on three main KPIs: cost per service unit, service quality and resource utilisation. These allow the company to measure data center transformation success while keeping services cost-competitive.

Intel's priority to drive transformational change instead of incremental change in its data center approaches has created "new business value" for its 60 data centers that host 145,000 servers.

Tensions on the rise after Huawei CFO arrest
“Recently our corporate CFO, Meng Wanzhou, was provisionally detained by the Canadian authorities on behalf of the United States of America."
Why total visibility is the key to zero trust
Over time, the basic zero trust model has evolved and matured into what Forrester calls the Zero Trust eXtended (ZTX) Ecosystem.
Gartner names Proofpoint Leader in enterprise information archiving
The report provides a detailed overview of the enterprise information archiving market and evaluates vendors based on completeness of vision and ability to execute.
QNAP introduces new 10GbE and Thunderbolt 3 NAS series
The new series is supposedly an all-in-one NAS solution for file storage, backup, sharing, synchronisation and centralised management. 
HPE to supply tech to Formula E racing team
“At HPE, we believe the future belongs to the fast, and we’re focused on accelerating what’s next for enterprises, including in the world of auto racing."
Data Exchange Networks achieves world-first
After receiving a new Uptime Institute award, DXN is now the first modular data centre developer in the world equipped to blend different standards.
Why the future of IT infrastructure is always on and always available
As more organisations embrace digital business, infrastructure and operations leaders will need to evolve their strategies and skills to keep up.
Malaysia investing in data-driven future – but obstacles remain
The country has openly expressed its desire to become the prime destination for high-tech industries in Southeast Asia.