Microsoft Considering A Move To ARM Chips

Microsoft Corporation (NASDAQ: MSFT) is considering using chips based on ARM Holdings plc (NASDAQ: ARMH) technology to power the software for its server computers, according to Bloomberg.

According to Bloomberg's unnamed 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's X86 processors but has a test version of Windows Server that's running on ARM servers.

A switch to ARM's chips would reduce Intel's dominant position in the market while providing ARM exposure outside of mobile-phone chips.

Hewlett-Packard 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.