Microsoft Considering A Move To ARM Chips - HP (NYSE:HPQ)

Bloomberg reported that

MicrosoftMSFT

is considering using chips based on

ARM HoldingsARMH

technology to power the software for its server computers. According to Bloomberg's un-named sources, Microsoft hasn't yet decided if it will make the software commercially available. Currently, the Redmond based company offers a server operating system for use on

Intel'sINTC

X86 processors but has a test version of Windows Server that's running on ARM servers. A switch to ARM's chips would certainly reduce Intel's dominant position in the market while providing ARM exposure outside of mobile-phone chips.

Hewlett-PackardHPQ

currently offers a version of its Moonshot server line that runs ARM processors. However, a move to ARM chips would go against comments a Microsoft spokesman

told The Register in January 2014. The Register reported that “Microsoft is unlikely to use ARM-compatible processors ina meaningful way in its data centers – unless there is a huge change in the software ecosystem around the non-x86 chips,” citing a “top Redmond bod.” Bloomberg stated that Microsoft's prior efforts to offer a version of Windows running on ARM chips for tablet computers did not yield success after the devices failed to resonate with consumer demand.

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