Nintendo shares surge following report of new console models

Shares of video game maker Nintendo surged on Tuesday following a report that the company would be releasing new versions of its blockbuster Switch console as soon as this year. The news came after the Wall Street Journal reported on Monday that Nintendo is set to release two new versions of its bestselling console, launched in 2017, “as early as this summer.” The Journal report, which cited suppliers and developers for Nintendo, said one of the new versions will have improved features aimed at


Shares of video game maker Nintendo surged on Tuesday following a report that the company would be releasing new versions of its blockbuster Switch console as soon as this year. The news came after the Wall Street Journal reported on Monday that Nintendo is set to release two new versions of its bestselling console, launched in 2017, “as early as this summer.” The Journal report, which cited suppliers and developers for Nintendo, said one of the new versions will have improved features aimed at
Nintendo shares surge following report of new console models Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-26  Authors: eustance huang, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, nintendos, shares, versions, version, console, models, following, surge, model, switch, wall, nintendo, report, street


Nintendo shares surge following report of new console models

Shares of video game maker Nintendo surged on Tuesday following a report that the company would be releasing new versions of its blockbuster Switch console as soon as this year.

Nintendo’s stock started to skyrocket in the morning to as high as 5 percent, before retracing some of those gains in the afternoon. The stock closed 4.76 percent higher.

The news came after the Wall Street Journal reported on Monday that Nintendo is set to release two new versions of its bestselling console, launched in 2017, “as early as this summer.”

The Journal report, which cited suppliers and developers for Nintendo, said one of the new versions will have improved features aimed at ardent gamers. The other model would be a cheaper variant geared towards casual players, touted as a successor for Nintendo’s hand-held 3DS console, long due for an upgrade as it was launched in 2011.

The two new versions of Switch are expected to be announced in June, with a potential launch coming a few months later, according to the Wall Street Journal.

The report also said electronics maker Sharp was expected to supply liquid-crystal displays for the new variants of Switch. Shares of Sharp jumped 3.98 percent.

Switch, marketed as a hybrid console enabling gamers to play on-the-go and at home when connected to a TV, has been an important revenue driver for Nintendo that turned the company’s fortunes around after its previous flagship model, the Wii U, suffered from lackluster demand.

Based on Nintendo’s track record on the life cycle of previous console upgrades, the possibility of a new version of Switch being released was “quite high,” Takao Suzuki, an analyst at Daiwa Securities, told CNBC in an email.

Kazunori Ito, senior equity analyst at Ibbotson Associates Japan, said it would make sense for Nintendo to launch a cheaper model of Switch, as that would suit its strategy to sell more than one such console per household.

“Overall, I assume that Nintendo’s strategy is to maximize the lifetime of (the) Switch console, and I believe that launching two different version will contribute (towards) achieving the target,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-03-26  Authors: eustance huang, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, nintendos, shares, versions, version, console, models, following, surge, model, switch, wall, nintendo, report, street


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Shares in Japan tumble as investors worry about the global economy

Shares in Japan sold off sharply on Monday as investors grappled with concerns over the global economy. The Nikkei 225 plunged 3.01 percent to close at 20,977.11, as shares of index heavyweights Softbank Group and Fanuc plummeted 5.01 percent and 3.84 percent, respectively. That followed a sell-off on Wall Street Friday, as an inverted yield curve stoked fears that an economic recession is on the horizon. The Fed’s dovish pivot over the past few months should help to cushion slowdown risks,” the


Shares in Japan sold off sharply on Monday as investors grappled with concerns over the global economy. The Nikkei 225 plunged 3.01 percent to close at 20,977.11, as shares of index heavyweights Softbank Group and Fanuc plummeted 5.01 percent and 3.84 percent, respectively. That followed a sell-off on Wall Street Friday, as an inverted yield curve stoked fears that an economic recession is on the horizon. The Fed’s dovish pivot over the past few months should help to cushion slowdown risks,” the
Shares in Japan tumble as investors worry about the global economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-25  Authors: eustance huang, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, yield, economy, tumble, shares, group, worry, economic, japan, slowdown, risks, investors, recession, index, global


Shares in Japan tumble as investors worry about the global economy

Shares in Japan sold off sharply on Monday as investors grappled with concerns over the global economy.

The Nikkei 225 plunged 3.01 percent to close at 20,977.11, as shares of index heavyweights Softbank Group and Fanuc plummeted 5.01 percent and 3.84 percent, respectively. The Topix index also fell 2.45 percent to finish its trading day at 1,577.41.

That followed a sell-off on Wall Street Friday, as an inverted yield curve stoked fears that an economic recession is on the horizon. Disappointing economic data released Friday out of Europe, coupled with an economic downgrade by the Federal Reserve, added to those concerns.

The spread between the 3-month Treasury bill and the 10-year note turned negative on Friday — the first time in more than a decade. Investors consider this to be a signal that a recession may be coming soon.

At present, the central bank balance sheets among the G3 economies — the U.S., Japan and the European Union — are “bloated,” they said. As a result, the difference in yield between holding a long-term bond versus a series of short-term debt was suppressed.

“However, this should not detract from the fact that the slowdown across the developed markets is deepening. While the US economy still seems to be on firm footing, guarding against downside risks has become the Fed’s main priority (as opposed to policy normalisation). The Fed’s dovish pivot over the past few months should help to cushion slowdown risks,” they said.

Bank shares in Tokyo struggled on Monday, with Mitsubishi UFJ Financial Group falling more than 3 percent and Sumitomo Mitsui Financial Group declining 2.91 percent.


Company: cnbc, Activity: cnbc, Date: 2019-03-25  Authors: eustance huang, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, yield, economy, tumble, shares, group, worry, economic, japan, slowdown, risks, investors, recession, index, global


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Japan’s economy grew faster than expected on investment rebound, but trade war clouds outlook

The Japanese economy grew faster than initially estimated in the fourth quarter as capital expenditure staged a quick recovery from a series of natural disasters in the previous quarter. That followed a revised 2.4 percent annualized contraction in the third quarter, which was the biggest decline in more than four years. This is more than a preliminary reading of a 0.3 percent expansion and economists’ median estimate of a 0.4 percent increase. Private consumption, which accounts for roughly 60


The Japanese economy grew faster than initially estimated in the fourth quarter as capital expenditure staged a quick recovery from a series of natural disasters in the previous quarter. That followed a revised 2.4 percent annualized contraction in the third quarter, which was the biggest decline in more than four years. This is more than a preliminary reading of a 0.3 percent expansion and economists’ median estimate of a 0.4 percent increase. Private consumption, which accounts for roughly 60
Japan’s economy grew faster than expected on investment rebound, but trade war clouds outlook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-08  Authors: kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, rose, rebound, expansion, revised, quarter, annualized, expected, estimate, trade, grew, median, war, investment, economy, japans, preliminary, faster, exports, outlook


Japan's economy grew faster than expected on investment rebound, but trade war clouds outlook

The Japanese economy grew faster than initially estimated in the fourth quarter as capital expenditure staged a quick recovery from a series of natural disasters in the previous quarter.

However, despite the upward revision to growth, economists are likely to temper their optimism on the outlook given a recent batch of disappointing data on exports and factory output and the economy expected to weaken due to the Sino-U.S. trade war.

Japan’s gross domestic product rose at an annualized rate of 1.9 percent in October-December, more than the initial estimate of a 1.4 percent annualized expansion and more than the median estimate for a 1.8 percent annualized increase, revised data from the Cabinet Office showed.

That followed a revised 2.4 percent annualized contraction in the third quarter, which was the biggest decline in more than four years.

Economists warn that capital expenditure and overall economic growth are likely to weaken in the first half of this year as exports dwindle and inventories pile up due to a slowdown in global trade.

The revised figure translates into a quarter-on-quarter expansion of 0.5 percent in real, price-adjusted terms. This is more than a preliminary reading of a 0.3 percent expansion and economists’ median estimate of a 0.4 percent increase.

The capital expenditure component of GDP rose 2.7 percent in October-December from the previous quarter to mark the fastest expansion since January-March 2015. That compares with the median forecast for a 2.8 percent increase and a preliminary 2.4 percent expansion.

Private consumption, which accounts for roughly 60 percent of GDP, rose 0.4 percent in the fourth quarter, less than the preliminary estimate of a 0.6 percent increase.

Net exports — or exports minus imports — contributed minus 0.3 percentage point, unchanged from preliminary data.

Domestic demand added a revised 0.8 percentage point to GDP, more than a preliminary reading of a 0.6 percentage point contribution.

Separate data on Friday showed household spending rose 2.0 percent year-on-year in January, more than the median estimate for a 0.4 percent annual contraction, which may ease concerns about domestic demand.

Real wages in January rose 1.1 percent year-on-year in January, matching the same pace of growth in the previous month, the labor ministry said on Friday.

The United States last year imposed tariffs on $250 billion worth of goods imported from China, with Beijing hitting back with duties on $110 billion worth of American products, including soybeans and other commodities.

U.S. President Donald Trump has delayed tariffs on $200 billion worth of Chinese imports as negotiations to resolve the eight-month trade war show signs of progress.

Even if the two sides resolve their differences, the damage to global trade and Japan’s economy may take some time to repair with uncertainty about trade policies hurting sentiment and disrupting manufacturers’ supply chains.


Company: cnbc, Activity: cnbc, Date: 2019-03-08  Authors: kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, rose, rebound, expansion, revised, quarter, annualized, expected, estimate, trade, grew, median, war, investment, economy, japans, preliminary, faster, exports, outlook


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

SoftBank’s Masayoshi Son may have become billions richer in one day

SoftBank Group Founder and Chief Executive Masayoshi Son, already one of Asia’s richest men, may have just added billions into his pocket from Thursday’s trading session. SoftBank’s stock ended Thursday’s session in Japan at 9,962.0 yen per share, a 17.73 percent gain over its last close at 8462.0. Son owned 231,205,000 shares in the Japanese conglomerate as of Sept. 30, 2018, according to the company’s website. If that number is still accurate, then that would mean Thursday’s stock move made So


SoftBank Group Founder and Chief Executive Masayoshi Son, already one of Asia’s richest men, may have just added billions into his pocket from Thursday’s trading session. SoftBank’s stock ended Thursday’s session in Japan at 9,962.0 yen per share, a 17.73 percent gain over its last close at 8462.0. Son owned 231,205,000 shares in the Japanese conglomerate as of Sept. 30, 2018, according to the company’s website. If that number is still accurate, then that would mean Thursday’s stock move made So
SoftBank’s Masayoshi Son may have become billions richer in one day Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: eustance huang, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, day, billions, billion, son, share, softbanks, yen, shares, thursdays, trading, stock, richer, website, masayoshi, softbank


SoftBank's Masayoshi Son may have become billions richer in one day

SoftBank Group Founder and Chief Executive Masayoshi Son, already one of Asia’s richest men, may have just added billions into his pocket from Thursday’s trading session.

SoftBank’s stock ended Thursday’s session in Japan at 9,962.0 yen per share, a 17.73 percent gain over its last close at 8462.0.

Son owned 231,205,000 shares in the Japanese conglomerate as of Sept. 30, 2018, according to the company’s website. If that number is still accurate, then that would mean Thursday’s stock move made Son about 346.81 billion yen ($3.15 billion) richer.


Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: eustance huang, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, day, billions, billion, son, share, softbanks, yen, shares, thursdays, trading, stock, richer, website, masayoshi, softbank


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

SoftBank Group unveils $5.5 billion stock buyback, Q3 profit soars 60 percent

Japan’s SoftBank Group Corp announced a $5.5 billion share buyback on Wednesday as it reported a 60 percent rise in quarterly operating profit buoyed by rising valuations for its technology investments. SoftBank Group said it would repurchase 112 million shares worth 600 billion yen ($5.5 billion) in the next 11 months, or about 10.3 percent of its total outstanding shares, excluding treasury stock. The buyback comes after SoftBank Group raised 2.35 trillion yen in December by listing about a th


Japan’s SoftBank Group Corp announced a $5.5 billion share buyback on Wednesday as it reported a 60 percent rise in quarterly operating profit buoyed by rising valuations for its technology investments. SoftBank Group said it would repurchase 112 million shares worth 600 billion yen ($5.5 billion) in the next 11 months, or about 10.3 percent of its total outstanding shares, excluding treasury stock. The buyback comes after SoftBank Group raised 2.35 trillion yen in December by listing about a th
SoftBank Group unveils $5.5 billion stock buyback, Q3 profit soars 60 percent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, stock, unveils, buyback, quarterly, reported, yen, profit, softbank, 60, valuations, soars, group, operating, q3, shares, billion, technology


SoftBank Group unveils $5.5 billion stock buyback, Q3 profit soars 60 percent

Japan’s SoftBank Group Corp announced a $5.5 billion share buyback on Wednesday as it reported a 60 percent rise in quarterly operating profit buoyed by rising valuations for its technology investments.

SoftBank Group said it would repurchase 112 million shares worth 600 billion yen ($5.5 billion) in the next 11 months, or about 10.3 percent of its total outstanding shares, excluding treasury stock.

The buyback comes after SoftBank Group raised 2.35 trillion yen in December by listing about a third of the shares in domestic telco SoftBank Corp, which on Tuesday reported a 24 percent jump in quarterly operating profit.

SoftBank Group said its operating profit in the October-December quarter was 438.3 billion yen ($3.99 billion) versus 274 billion yen a year earlier. The year-earlier figure used previous accounting standards.

Profits at SoftBank Group are increasingly affected by the valuations of big technology bets through its own investing activities and its Saudi-backed Vision Fund, which launched last year with over $90 billion in capital.


Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, stock, unveils, buyback, quarterly, reported, yen, profit, softbank, 60, valuations, soars, group, operating, q3, shares, billion, technology


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

SoftBank unit marks Japan’s largest-ever IPO, but sinks more than 14 percent

SoftBank will be replacing its Huawei hardware in its 4G network infrastructure over the next few years and using equipment from Ericsson and Nokia instead, according to Japan’s Nikkei Asian Review. It is also expected to place orders with the two European companies for its 5G networks, the Nikkei reported. Sprint’s prospective $26 billion merger with Deutsche Telekom-owned T-Mobile U.S., meanwhile, was approved by the U.S. government on Monday after SoftBank and the German company said they wou


SoftBank will be replacing its Huawei hardware in its 4G network infrastructure over the next few years and using equipment from Ericsson and Nokia instead, according to Japan’s Nikkei Asian Review. It is also expected to place orders with the two European companies for its 5G networks, the Nikkei reported. Sprint’s prospective $26 billion merger with Deutsche Telekom-owned T-Mobile U.S., meanwhile, was approved by the U.S. government on Monday after SoftBank and the German company said they wou
SoftBank unit marks Japan’s largest-ever IPO, but sinks more than 14 percent Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-19  Authors: kelly olsen, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, transformation, 14, using, tokyo, vision, think, largestever, unit, softbank, japans, fund, technology, ipo, marks, equipment, capital, sinks


SoftBank unit marks Japan's largest-ever IPO, but sinks more than 14 percent

SoftBank will be replacing its Huawei hardware in its 4G network infrastructure over the next few years and using equipment from Ericsson and Nokia instead, according to Japan’s Nikkei Asian Review. It is also expected to place orders with the two European companies for its 5G networks, the Nikkei reported.

Sprint’s prospective $26 billion merger with Deutsche Telekom-owned T-Mobile U.S., meanwhile, was approved by the U.S. government on Monday after SoftBank and the German company said they would stop using Huawei’s equipment, Reuters reported.

Mark Einstein, chief analyst for telecommunications and digital services at ITR Corporation in Tokyo, said he was not surprised by SoftBank’s share price drop given the challenges faced by both the company and the Japanese telecommunications market more broadly.

He listed those as government pressure to cut costs, expenses related to next year’s 5G roll out in the country, Rakuten’s entry to the market and higher capital expenditures resulting from Chinese equipment being shut out.

“So I think for SoftBank’s bottom line it means that they’re going to be forced to use European and American equipment, which is going to be more expensive,” he said on CNBC’s “Capital Connection.”

The listing on the Tokyo Stock Exchange also comes as Son, one of the tech world’s most powerful people, makes waves with his $100 billion Vision Fund, and marks the transformation of the group from a mobile carrier to a global investment fund.

“He’s trying to court a new type of investor that actually shares his vision in the outlook for (Internet of Things technology), for robotics and most importantly artificial intelligence,” Chris Lane, senior researcher at Sanford C. Bermstein, said Wednesday on CNBC’s “Squawk Box” before trading began.

“So this is part of that transformation,” Lane said. “I think it’s a fairly major step in that transformation.”

The fund was established in October 2016 and is aimed at boosting promising businesses in the technology sector.

“IPO proceeds will supplement the holding company’s liquidity, although a large part of proceeds to SoftBank may eventually be used to fund its remaining capital commitments to the SoftBank Vision Fund (SVF), which continues to invest in internet and emerging technology businesses,” Moody’s Investors Service said in a report last month.


Company: cnbc, Activity: cnbc, Date: 2018-12-19  Authors: kelly olsen, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, transformation, 14, using, tokyo, vision, think, largestever, unit, softbank, japans, fund, technology, ipo, marks, equipment, capital, sinks


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Japan’s SoftBank to replace Huawei equipment, Nikkei reports

Japanese mobile carrier SoftBank will be replacing its hardware from Chinese tech giant Huawei in its 4G telecommunications network infrastructure over the next few years — and will instead be using equipment from Ericsson and Nokia, Nikkei Asian Review reported on Thursday. SoftBank is also expected to place orders with the two European companies for its 5G networks, Nikkei reported. SoftBank is the only telecom carrier in Japan that uses Huawei equipment, according to the news outlet. The 5G n


Japanese mobile carrier SoftBank will be replacing its hardware from Chinese tech giant Huawei in its 4G telecommunications network infrastructure over the next few years — and will instead be using equipment from Ericsson and Nokia, Nikkei Asian Review reported on Thursday. SoftBank is also expected to place orders with the two European companies for its 5G networks, Nikkei reported. SoftBank is the only telecom carrier in Japan that uses Huawei equipment, according to the news outlet. The 5G n
Japan’s SoftBank to replace Huawei equipment, Nikkei reports Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: huileng tan, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, softbank, replace, reports, japans, network, huawei, telecommunications, using, reported, 5g, nikkei, carrier, equipment


Japan's SoftBank to replace Huawei equipment, Nikkei reports

Japanese mobile carrier SoftBank will be replacing its hardware from Chinese tech giant Huawei in its 4G telecommunications network infrastructure over the next few years — and will instead be using equipment from Ericsson and Nokia, Nikkei Asian Review reported on Thursday.

SoftBank is also expected to place orders with the two European companies for its 5G networks, Nikkei reported. SoftBank is the only telecom carrier in Japan that uses Huawei equipment, according to the news outlet.

The 5G network is the next telecommunications standard that facilitates quicker transfer of data, and allows more devices to connect to the internet.


Company: cnbc, Activity: cnbc, Date: 2018-12-13  Authors: huileng tan, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, softbank, replace, reports, japans, network, huawei, telecommunications, using, reported, 5g, nikkei, carrier, equipment


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

SoftBank’s record IPO reaches $23.5 bln after extra share sale

SoftBank Group Corp is set to raise 2.65 trillion yen ($23.5 billion) in Japan’s biggest-ever IPO – a share sale widely regarded as finalising the group’s transition from domestic telco to a monolithic global tech investor. Telco unit SoftBank Corp on Monday priced its stock at 1,500 yen apiece, as previously indicated. It also said it will sell all extra shares set aside for excess demand, taking the total just shy of the record $25 billion raised in 2014 by Chinese e-commerce giant Alibaba Gro


SoftBank Group Corp is set to raise 2.65 trillion yen ($23.5 billion) in Japan’s biggest-ever IPO – a share sale widely regarded as finalising the group’s transition from domestic telco to a monolithic global tech investor. Telco unit SoftBank Corp on Monday priced its stock at 1,500 yen apiece, as previously indicated. It also said it will sell all extra shares set aside for excess demand, taking the total just shy of the record $25 billion raised in 2014 by Chinese e-commerce giant Alibaba Gro
SoftBank’s record IPO reaches $23.5 bln after extra share sale Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, group, stock, shares, sale, corp, share, billion, tech, extra, yen, set, giant, 235, reaches, record, softbanks, bln, softbank, ipo


SoftBank's record IPO reaches $23.5 bln after extra share sale

SoftBank Group Corp is set to raise 2.65 trillion yen ($23.5 billion) in Japan’s biggest-ever IPO – a share sale widely regarded as finalising the group’s transition from domestic telco to a monolithic global tech investor.

Telco unit SoftBank Corp on Monday priced its stock at 1,500 yen apiece, as previously indicated.

It also said it will sell all extra shares set aside for excess demand, taking the total just shy of the record $25 billion raised in 2014 by Chinese e-commerce giant Alibaba Group Holding Ltd, a SoftBank Group portfolio company.

The group, which controls the world’s biggest tech private equity fund at nearly $100 billion, will use the proceeds to invest in startups which have ranged from tiny games makers to U.S. ride-hailing giant Uber Technologies Inc.

“Demand was well above the number of shares on offer,” SoftBank Corp said, declining to disclose by how much.

The stock will debut on the Tokyo Stock Exchange’s first section on Dec. 19.


Company: cnbc, Activity: cnbc, Date: 2018-12-10  Authors: kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, group, stock, shares, sale, corp, share, billion, tech, extra, yen, set, giant, 235, reaches, record, softbanks, bln, softbank, ipo


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Amazon bet on Arm could weaken Intel’s hold on data centers, which make up one-third of its business

The plan is to allow customers to request instances that use the Arm chips, Garman said. So far, AWS instances using the Arm processors aren’t performing as well as comparable instances that rely on Intel chips, according to tests that one person ran. Still, the availability of Arm from the biggest cloud provider represents a win for Arm. What’s more, other cloud providers could start to release instances using technology from Arm, which was acquired by Softbank in 2016 for $32 billion. “Microso


The plan is to allow customers to request instances that use the Arm chips, Garman said. So far, AWS instances using the Arm processors aren’t performing as well as comparable instances that rely on Intel chips, according to tests that one person ran. Still, the availability of Arm from the biggest cloud provider represents a win for Arm. What’s more, other cloud providers could start to release instances using technology from Arm, which was acquired by Softbank in 2016 for $32 billion. “Microso
Amazon bet on Arm could weaken Intel’s hold on data centers, which make up one-third of its business Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-01  Authors: jordan novet, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, hold, cloud, centers, servers, amazon, using, bet, business, weaken, aws, onethird, data, chips, intels, instances, customers, arm, garman, processors


Amazon bet on Arm could weaken Intel's hold on data centers, which make up one-third of its business

Energy-efficient processors based on the Arm architecture could be more widely deployed after Amazon Web Services’ introduction of Arm-based cloud-computing resources for developers this week.

The prospect of Softbank-owned Arm growing beyond consumer devices like smartphones and becoming a force in enterprise computing represents a challenge to Intel, whose processors are widely used inside servers operating in cloud and corporate data centers. Intel’s data center group is its second-largest by revenue, making up 32% of Intel’s revenue in Q3, and is growing faster than the company’s still-larger business of making chips for PCs and other devices.

These chips reduce the total cost of ownership of the servers that encase them, which can in turn benefit customers, Matt Garman, AWS’ vice president for compute services, told CNBC in an interview at the AWS re:Invent conference in Las Vegas this week.

Early feedback in just the few days since Amazon announced the chips has been positive, he said.

“I’ve seen Fortune 1000 big enterprises coming to us, saying, ‘Holy cow, this it interesting for some Internet of Things use cases,” he said. Don MacAskill, CEO of one of AWS’ early customers, SmugMug, had been asking him for Arm-based chips on the Amazon cloud for the past six years, Garman said.

Some of the many AWS tools for developers, like the Lambda “serverless” computing service, could potentially run on the Arm servers in the future, even if most of Amazon’s applications will keep using the popular x86 architecture that Intel’s chips use for a long time, Garman said.

In addition to announcing the Arm chips this week, AWS also said that it will start offering servers that customers can install in their own data centers, for applications that just can’t be run in the public cloud. From the AWS website, customers will be able to choose various types of EC2 computing instances that can be run, and from there, AWS will be able to deliver the right servers to meet companies’ needs.

The plan is to allow customers to request instances that use the Arm chips, Garman said. In other words, AWS could widen the distribution of Arm through the server product well beyond its own corporate boundaries.

“Any instance that we have is the goal, whether it’s Nvidia GPUs, whether it’s Arm, whether it’s Intel, as part of that service,” Garman said.

So far, AWS instances using the Arm processors aren’t performing as well as comparable instances that rely on Intel chips, according to tests that one person ran.

Still, the availability of Arm from the biggest cloud provider represents a win for Arm.

“AWS’ embrace gives Arm the shot of credibility to expand its footprint into more cloud players and workloads,” industry analyst Patrick Moorhead of Moor Insights & Strategy wrote in a message to CNBC on Friday.

In the years to come, AWS could release new instances based on more powerful Arm-based chips. The existing instances use Arm’s Cortex-A72 system, which was introduced in 2015.

And Arm is working on new processor technology that could enable greater performance, the company’s CEO, Simon Segars, told CNBC in an interview this week.

What’s more, other cloud providers could start to release instances using technology from Arm, which was acquired by Softbank in 2016 for $32 billion.

“Microsoft has shown in the past the use of Arm processors in their infrastructure,” Segars said. “They haven’t had that commercially available, but they’ve shown what it can do.”

With several big companies competing in the market for cloud infrastructure, competition is fierce, he said.

“If there’s a way to offer the processing capability at lower cost, then I would think everybody that plays in that space would want to take advantage of it,” Segars said.

WATCH: Company little changed after Softbank acquisition: Arm CEO


Company: cnbc, Activity: cnbc, Date: 2018-12-01  Authors: jordan novet, kazuhiro nogi, afp, getty images
Keywords: news, cnbc, companies, hold, cloud, centers, servers, amazon, using, bet, business, weaken, aws, onethird, data, chips, intels, instances, customers, arm, garman, processors


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post