What Qualcomm’s rumored exit from data centers means

The tech industry got a jolt last week worse than the 3.5 magnitude quake that hit Oakland, California, on Monday. A report by Bloomberg, citing the usual anonymous sources, said that after a whole lot of R&D and hype, Qualcomm was looking to shut down or sell its Centriq line of ARM-based data center processors.

Qualcomm launched the 48-core Centriq 2400 last November. At the time, potential customers, such as Microsoft, Alibaba and HPE, took to the stage to voice their support and interest.

Qualcomm stops talking about Centriq

Since then, nothing. Qualcomm hasn’t said a word about Centriq on two earnings calls since then. A check with Mercury Research and IDC, which both follow market share numbers pretty closely, found no measurable sales of Centriq products. And none of my usual analysts have heard a word beyond the Bloomberg story.

If you’ve followed any industry, you know that when a company stops talking about a product, it’s probably doomed. The company loses faith before they kill off a product, and silence is a major indicator of it. We’ve heard nothing from them about wins or deployments, and nothing about the next generation.

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