英特尔：IBM推出Linux服务器，我根本不Care！

worsening with intensifying competition from x86-based servers in the Power segment. The mainframe segment saw a year-over-year revenue increase of 44.7% to $2.1 billion in the first quarter, driven by IBM's z13 refresh. However, the Power segment is lagging far behind.

I don't believe IBM's new Power Systems LC line could be a potential threat to Intel's server chip business. While choosing between Intel x86 and Power, virtualization makes the real difference. The demand for x86-based virtual servers is rising rapidly due to their increased efficiency with various Linux-based hypervisors, such as VMware's (NYSE:VMW) ESXi or Red Hat's (NYSE:RHT) KVM. With the increasing popularity of hyperscale OpenStack clouds in software-defined data center (SDDC), I strongly believe the demand for Intel's Xeon line of processors will continue to rise. I have discussed the future potential of virtualization on x86 hardware in greater detail in a previous article.

Conclusion

Intel will release two Broadwell-based Xeon E5 processors, Xeon E5-1600 v4 and E5-2600 v4, in the first quarter of 2016. IBM's newly launched Linux servers will face tremendous competition from Intel's upcoming Xeon processors. In a previous article I shared how Intel's product differentiation strategy will help the company retain market share amid a challenging and competitive business environment. I believe Intel is a superb long-term investment idea.