Azure will use Xilinx chips as co-processors in more than half of its servers, winning business that has been an exclusive for Intel’s Altera unit. Co-processors are chips that accelerate some functions to relieve the main processor in a server.
Red Hat will improve IBM profit margins, and gets the company further into an emerging part of the business known as hybrid cloud. But some analysts say the deal won’t make IBM a dominant player in the public cloud.
Big Blue's acquisition of Red Hat probably has very little to do with Linux and much to do with the cloud.