Rapid growth in Internet of Things
Intel Corporation (INTC) and Qualcomm (QCOM) are looking to dominate the IoT (Internet of Things) segment, which is expected to grow at an exponential rate, with particular increases in smartphone usage and other connected devices. IDC has estimated that global IoT market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020, making this segment a lucrative one for the two firms in the semiconductor sector.
Intel will thus look to leverage its dominance in the PC (personal computer) segment and to use data center chips to expand in the IoT market, whereas Qualcomm aims to grow via its smartphone and tablet business segments.
Intel invests in Chinese start-ups
Last week Intel announced that it’s looking to invest $67 million in China-based tech start-ups through its venture arm, Intel Capital. Intel has stated that it will invest in various tech segments including IoT, smart devices, transportation, and analytics.
Some of Intel’s investments in China include Ninebot, a scooter start-up, 99cloud, an OpenStack-based solutions company, AW cloud, a firm that develops OpenStack cloud solutions for enterprise firms, and Xiaomi, a Chinese smartphone and consumer electronics designer. Earlier this year, Intel agreed to buy Altera Corporation (ALTR) for $16.7 billion.
Collaboration with Rackspace
On July 23, 2015, Intel announced a new collaboration with Rackspace Hosting (RAX), wherein both firms will establish the OpenStack Innovation Center, focused on driving enterprise features and scale optimizations into the OpenStack “source code.”
As Intel stated in a recent press release, this center will include “the world’s largest OpenStack developer cloud consisting of two 1,000-node clusters that will be available to the OpenStack community-at-large to support advanced, large-scale testing of OpenStack performance, code and new features.”