Qualcomm knows that competing directly against the traditional x86 cloud server market with an ARM based solution has not been successful for AMD, Applied Micro and others. However, it’s a mistake to believe this is Qualcomm’s strategy.
Rather, in my opinion, the company is going after the market it knows best: wireless. Future wireless will require Cloud radio access network (C-RAN) solutions which move baseband processors from several cellular base stations to fibre-connected central servers with baseband processing for many channels.
That’s where Qualcomm’s partnership with FPGA giant Xilinx comes in; to perform the blazingly fast DSP functions necessary for such centralised baseband operations. That’s why Intel is buying Xilinx’ biggest FPGA competitor, Altera. Yes, C-RAN requires server development, but not for the servers employed by the likes of Facebook and Google.
The biggest market for C-RAN will be China and Intel is already dabbling in prototype development with both Chinese and Korean carriers. However, one Chinese carrier said it likes the idea of ARM servers (rather than x86 servers) for C-RAN because power consumption is potentially much lower and China has a tight power budget for years to come.
Although Intel has an early toehold in that market, Qualcomm has a stronger wireless history, along with many connections in China.
Will Strauss is a leading commentator on semiconductor trends in wireless, audio and VoIP markets and owner of Forward Concepts.
