Qualcomm, globally known for manufacturing smartphone chipsets is reportedly teaming up with Microsoft for the latter's cloud-computing software platform that serves as internal data centers. With this emerging partnership, Intel's dominance in the data center semiconductor market is expected to go downhill.

Why Microsoft Overlook Intel for Qualcomm?

For the previous weeks, rumored about Apple choosing AMD over Intel for the upcoming MacBook Pro has surfaced the internet. The rumor is followed by another one which suggests Microsoft will use AMD's latest CPU for upcoming Surface devices which makes everyone asks "Is Intel doing just fine?"

The latest developments in the PC/laptop market doesn't seem to favor Intel at all which is also the same case with the data center semiconductor market where Qualcomm moves to challenge Intel's dominance. According to The San Diego Union Tribune, Microsoft is one of the data center operators who seek for alternative suppliers for broad-based ARM server ecosystem.

The hype over ARM-based processors in workstations and mobile devices has already begun and this probably stirs the curiosity of those who are involved in data center business. Qualcomm and Microsoft partnership seeks to utilized Qualcomm's Centriq 2400 (currently the internal data center of Qualcomm) to support Microsoft cloud-computing software platform and will be test this year.

Microsoft has reportedly viewed Qualcomm's data center semiconductors beneficial to their cloud services most especially to internal cloud applications such as big data, machine learning, databases, storages and search and indexing. These applications cannot be handled by Intel because the company focuses on producing microchip architecture for personal computers, Bloomberg reported.

Intel Ventures in Smartphones Chipsets

Amidst the rumor of losing the processor fight to AMD as well as data center semiconductor to Qualcomm, Intel has reportedly gained back its credibility in the smartphone industry. It's presence in the cellular modem slot of Apple iPhone 7 replacing Qualcomm in T-Mobile and AT&T networks is a significant win against its emerging rival in the semiconductor industry.