AWS catapults Arm to the high end of the server market


With its Graviton server chips, AWS is leading the way for cloud providers’ adoption of Arm-based processors, according to a new report from market research firm TrendForce.

As business demand for digital transformation, including AI and high-performance computing, has accelerated in recent years, this has led to increased adoption of cloud computing services. In order to improve service flexibility, cloud service providers have started to introduce Arm-based servers and TrendForce estimates that Arm architecture in data center servers will reach 22% by 2025.

As enterprises have begun to diversify their cloud workloads over the past few years, the market has begun to pay more attention to the benefits Arm architecture processing can bring to data centers.

In its report, TrendForce explained that Arm-based processors have three major advantages. They can support diverse and rapidly scaling workloads at scale while being cost-effective, they offer higher customization for a variety of niche markets with a more flexible ecosystem, and their physical footprint is relatively small, making them making them ideal for today’s micro data centers.

Follow the example of AWS

Due to the current geopolitical situation and increased need for data sovereignty in various countries, major cloud and telecom service providers are actively developing micro data centers which will lead to further adoption of Arm-based processors.

Meanwhile, AWS’ Graviton chips hold the largest market share and began to reduce x86’s dominance in the server market last year. TrendForce also noted that AWS’ deployment of Arm-based processors reached 15% of its overall server deployment in 2021, though that figure is expected to exceed 20% this year.

As such, other major cloud service providers will need to launch their own Arm-based server projects at various foundries in order to keep up with AWS. If testing goes as planned, these projects will likely start rolling out en masse in 2025.

Additionally, Arm’s own platform roadmap for Neoverse will be a key driver of penetration. While the chip designer’s product line is designed to target hyperscale data centers and edge computing infrastructures, it will still take some time for Arm-based servers to find their way into data centers. ‘business. That’s why TrendForce estimates that Arm-based servers probably won’t be able to compete with traditional x86-based servers until 2025.


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