Categories: CloudDatacentre

PayPal Deploys Applied Micro’s ARM Servers In Data Centres

PayPal has deployed Applied Micro Circuits’ ARM-powered server chips in its hyper scale data centres, giving the firm a boost in the battle against Intel and AMD for data centre server on chip (SoC) credibility.

The California-based fabless chip company used its quarterly earnings release to announce that its X-Gene ARMv8 64-bit SoC is now used by the online payment provider.

“We are also pleased to report that PayPal, one of the world’s leading hyperscale data center operators, has deployed and validated X-Gene,” said Applied Micro’s CEO Paramesh Gopi.

“A recent ARM Holdings analyst presentation graphically compared X-Gene based server performance metrics versus conventional data centre infrastructure using real-time PayPal server data. The analysis clearly showed X-Gene’s superior performance, as the price and performance benefits of using X-Gene were dramatic.”


Applied Micro argues that units loaded with X-Gene chips cost around half the price of traditional data centre hardware, and incur just one-seventh of traditional annual running costs.

The X-Gene started shipping in 2013, following a three-year focus on cloud from Applied Micro Circuits. Applied Micro acquired the first architectural license for the ARM v8 64-bit architecture in 2010. Applied Micro helped also helped to complete the ARMv8 64-bit spec, and was first to the market with a 64-bit SoC.

“PayPal’s real world results unequivocally prove X-Gene’s value proposition and illustrate why we are optimistic about X-Gene deployments,” said Gopi. “Moreover, PayPal represents one of the many hyperscale data centre customers that we are currently engaged with to drive X-Gene adoption.”


Intel, which also dishes ARM-powered chips, reported that its data centre business grew 19 percent in the first quarter of 2015 to $3.7bn. The firm introduced its first 64-bit SoC in September 2013. AMD’s started shipping its 64-bit SoC development kit last summer, with a new range due to be launched in the first half of 2015.

But Applied Micro’s PayPal announcement was marred by an average first quarter from the company. Applied Micro reported net revenue of $37m, equating to a net loss of $15.1m. The company’s quarterly revenue was down 28.6 percent year-over-year. However, the results topped Wall Street expectations and Gopi used the earnings call to capitalise on X-Gene success.

“As we look ahead to fiscal 2016, we see our base business on solid footing and are excited about design win traction with both our HeliX and X-Weave product lines. Moreover, we are pleased with the growing end-customer adoption of our X-Gene product family as validated by our expanding pipeline of new design wins,” said Gopi.

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Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

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