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As a primary computational core on the server, Arm's chips may face a challenge as the market trend has been to migrate to x86 rather than RISC (reduced instruction set computer) chips, said Dean McCarron, principal analyst at Mercury Research. Arm's chips are power efficient and good for low-end servers running Linux, but the company could have difficulty finding developers to build a server software infrastructure surrounding its core architecture.
A substantial amount of server software infrastructure is built around x86 architecture, and Arm will have to distinguish itself to boost adoption of its chip designs, McCarron said.
"Software is going to be [the] dominant factor, as it will predict choices in OS and applications. They will need to have offerings above x86," McCarron said.
Acknowledging that building a software ecosystem was a challenge, Ferguson said that Arm has tied up with chip makers and software companies like Microsoft and Adobe to build up software support for its chip architecture.
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