Intel (INTC - Free Report) and Alphabet’s (GOOGL - Free Report) Google Cloud platform recently inked a deal with an aim to assist enterprises with accelerated deployment of applications on hybrid cloud and on-premise infrastructure.
The companies together will develop “Anthos reference design” by utilizing Intel’s 2nd-Generation XeonScalable processors.
The design will also leverage Kubernetes software stack optimized to improve performance and accelerate workloads involving complex artificial intelligence (AI) and cloud computing processes.
The design of the developer platform will be rolled out as Intel Select Solution, by mid-year 2019. General availability of the design with solutions integrators is scheduled for later part of the year.
Notably, shares of Intel have returned 10.6% in the past year, outperforming the industry’s growth of 2.1%.
With the evolvingdata center environment, Intel and Google Cloud aim to assist companies with a democratized approach toward hybrid cloud model. Dynamic improvement in machine learning (ML), deep learning (DL) and edge computing processes is enabling companies to come up with innovative solutions.
Moreover, digital transformation initiatives and hyperscale datacenter development are the primary catalysts behind cloud-based IT infrastructure expansion. Increasing mobility among workers and growing popularity of Bring Your Own Devices (BYOD) trend is compelling enterprises to adopt flexible hybrid cloud infrastructure solutions.
Notably, per IBM's estimates, roughly 85% of the companies (which were surveyed) are utilizing multiple cloud computing platforms rather than depending on a single one.
Per a MarketsandMarkets report, global hybrid cloud market is envisioned tohit $97.64 billion by 2023 from $44.6 billion in 2018 at a CAGR of 17%.
The aforementioned reports strengthen the robust prospects of the latest design development to offer optimized solutions which can be accessed on both on-premise and cloud environments.
Intel is striving to raise the bar in datacenter market with innovative products and strategic collaborations. The company announced the availability of a slew of new data-centric solutions, recently at its “Data-Centric Innovation Day.”
In fact, Intel’s latest data centerprocessors have recently been selected by Super Micro Computer Inc. and Dell EMC. Moreover, the company’s Optane DC persistent memory solution introduced on Google Cloud is enabling users to upscale workloads and process huge amounts of data faster in a secure architecture.
The deal is likely to enhance Google Cloud’s prospects in gaining incremental market share against other hyperscale cloud providers including Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) , to mention a few.
To conclude, we believe the latest deal presents a win-win situation for both the companies.
Intel carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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