Intel eyes storage

By producing blueprints for server computers and assembling most of their critical components, Intel helped generate significant production of low-end machines, often by lesser-known manufacturers. In a similar way, the company is poised to fuel the "white box" market for storage disk arrays, said David Freund, an analyst with researcher Illuminata.

"The server-commoditisation wave is being repeated in storage," Freund wrote in a recent report. "Intel is planting (its) seeds and planning to reap the rewards."

The chip giant already makes a variety of semiconductor products for storage systems. But it is now weaving its efforts into a more comprehensive whole that would reduce the independent engineering needed to make a system.

Intel is working with a partner to integrate some storage functions with processor chips, which could speed up performance and cut costs. At a trade show earlier this year, Intel demonstrated prototypes of inexpensive storage systems. Intel has invested in numerous storage-related companies. And the company has begun coordinating the work of several divisions that each touch on the storage world, said Seth Bobroff, director of marketing programs and communications for Intel's networking and storage group.

"It's absolutely a key area and one we see growing," Bobroff said. "We see the opportunity and are working as one."

Such a move, over time, could have a significant impact on the industry. Smaller PC and server makers could start to sell their own storage systems by using the fundamental engineering and design work performed by Intel. Conversely, large storage companies such as EMC could feel a pinch in their plans to target small and mid-sized businesses.

Intel declined to provide figures on its storage-related revenue or its specific plans related to white box storage systems. But Bobroff hinted the company is ready to give the low end of the market a push. Intel wants to work with an "ecosystem" when it comes to storage products, he said. But, he added, if that ecosystem isn't moving, Intel asks itself, "what do we do to try to help move it along?"