They would be processors for its cloud services and for the Surface line of equipment. With the decision, he would be following in the footsteps of Apple, which has already introduced computers with its M1 chip.
Microsoft, the world’s largest software maker , is moving away from Intel to work on its own processors. This was reported by Bloomberg on the afternoon of this Friday.
According to the agency, which cites sources familiar with the matter, the chips are based on designs by Arm, a UK multinational specializing in semiconductors, and will be used in computers running the company’s cloud services, Azure. Microsoft would also be working on a chip for its Surface line of personal computers.
This report is quite positive for technology, considering the week it has had. According to Business Insider , Microsoft has been involved in the mega-hack of the Russian government that affected dozens of public agencies in the US. At the time, it was reported that the effects could have affected clients and users of the technology. The brand accepted that it was hit by the incident, but found no evidence of harm to third parties.
Beyond the general situation of Microsoft in recent days, it must be recognized that the decision is quite prudent. According to the Wall Street Journal , the main chip supplier in the region, Intel, has started to encounter significant barriers. Specifically, the fact that he will no longer be able to personally handle the manufacturing of the components. The above could imply lower quality, something that of course your customers would not like.
But there is another powerful reason why this decision is interesting. By controlling this part of its supply chain, Microsoft can have greater control over the final quality of the services and products it provides to its customers. According to The Street , it is crucial to create economies of scale and reduce dependence on external suppliers. Not only that, but it could even allow you to offer lower prices to the customer, or increase margins.
As Microsoft celebrates this decision, the components industry is at a not very pleasant point. And it is not the first technology to make a similar decision. Apple is already producing its own laptops and mobiles with its own chips. This not only gives you the confidence to even target markets like gaming. It could also significantly reduce the revenues of leaders such as Intel, Nvidia, AMD and other similar producers.
Add to that the fact that the chip industry, in general, is not having the best time of its life. For some time now, various industry experts have been warning of a global shortage of these components. Not only could it lead to Microsoft being unable to create more and better data centers. Thousands of technology companies would be unable to meet the demand for smartphones , laptops , Smart TVs and even cars in the first months of 2021.