Chip maker Advanced Micro Devices (AMD) announced its plans to buy low-power server vendor SeaMicro for about $334m.
This acquisition will help AMD to market SeaMicro’s servers, to its corporate partners, including Hewlett Packard, Dell Inc and IBM.
AMD was quoted by the Reuters as saying SeaMicro’s servers consume a quarter of the power and take up a sixth the space of a typical server that comprises the massive "farms" that corporations now maintain.
It is opined that the rapid adoption of cloud computing, which allows data and applications to be stored on or hosted on remote computers via the Internet, is driving worldwide server demand, according to news agency.
AMD product marketing director John Fruehe said SeaMicro also has the capability to go mainstream and its servers can be scaled-out to accommodate more intensive tasks.
AMD will pay $281m in cash from its reserves for the acquisition which is expected to close in about 30 days.
