HP to use ARM chips in servers -

Intel has had another shot over its bows after a report claimed that giant Hewlett Packard is considering using ARM-based chips in its server range.

According to Bloomberg, HP is working with a company called Calxeda, which ARM has a stake in, to manufacture chips for a range of servers.

Bloomberg said the two people who spilled the ARM beans didn’t want to be identified.

ARM believes that chips based on its design can challenge the traditional X86 player on many fronts. Intel’s official position, however, is that it is so far ahead of the game in process technology that it will still be able to take advantage of Moore’s Law to scale X86 technology at a higher performance level.

Responding to the threat of ARM, Otellini said: "There's no one ARM, and there's no one version of Atom going into these devices. The ARM guys have done a lot of that in the past, the Intel and ARM architectures both face the fundamental physics problems. It will be more a function of the transistors."

Meanwhile it appears that HP’s recent “decision” to abandon its PC business is driving Intel and Dell closer and closer into their already rather close embrace.