Calxeda, a firm attempting to manufacture and sell servers based on the Arm chip architecture, has shut down due to financial difficulties.
The move to put Arm’s low-power chips in servers has followed on from the huge success of its processors in smartphones and tablets. Manufacturers hope to create servers that can meet the demand for low-intensity tasks, such as serving web pages that do not require vast power resources.
HP and Dell are also moving in this direction, seeing it as a new area to help meet the rapidly growing demand for servers within data centres as more and more applications and services move to the cloud.
However, it appears Calxeda was too early to market. Widespread reports suggest that the company was unable to convince investors to give more funding to keep it operational, possibly as a result of the looming challenge from giants in the IT sector.
The firm confirmed the shut down in a brief statement to V3, from the firm's vice president of marketing, Karl Freund: "Yes we are closing down operations as we seek to restructure."
He elaborated further: “The concept of a fabric of ARM-based servers challenging the industry giants was not on anyone’s radar screen when we started this journey. Now it is a foregone conclusion that the industry will be transformed forever.
“Carrying the load of industry pioneer has exceeded our ability to continue to operate as we had envisioned.”
Reports suggest that the firm could also look to sell the intellectual property it has built up over the years to a firm such as HP or Dell, in an effort to recoup some gains from its current position. HP recently unveiled new Moonshot servers running on Arm processors.
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