This week ARM Holdings
announced that Warren East
will be retiring as CEO on the first of July. Simon Segars
, currently president of ARM, will become the company’s new CEO.
Warren East joined ARM in 1994 to establish the company’s consulting business and later became VP of business operations. He became ARM’s CEO in October 2001 and has supervised the acquisition of seven companies during his tenure. ARM’s business model is licensing of its technology as intellectual property (IP), rather than fabricating its own CPUs. In 2001, ARM had one processor product line found mainly in mobile phones. Now ARM provides a portfolio of technology used by more than 300 semi-conductor customers in nearly 9 billion chips.
ARM was originally founded in November 1990 as Advanced RISC Machines, an ARM joint venture between Acorn Computers, Apple Computer, and VLSI Technology. Its first profitable year was 1993. A British pound invested in the company shares 10 years ago would be worth today about 18 pounds. The company is valued at nearly 13 billion pounds ($19 billion).
ARM has been known for its low power CPUs in mobile devices. Today, ARM accounts for over 75 percent of all 32-bit embedded CPUs. In 2012, ARM announced their 64-bit capable Cortex-A 50-series processor architecture. ARM believes the 64-bit architecture will give them an entry into the micro-server marketplace.
During ARM’s Tech Con 2012, Simon Segars gave an indepth explanation of their 64-bit Cortex-A50 series
processor design. Dell
is testing 64-bit ARM micro-server with chips from AppliedMicro
< > and Advanced Micro Devices (AMD)
have announced they are licensing the 64-bit processor design from ARM and will sell ARM-based micro-server processors in 2014. Samsung, Broadcom, HiSilicon and STMicroelectronics have also licensed Cortex-A50 designs from ARM; Samsung has licensed both the Cortex-A57 and A53 cores.
Simon Segars, is 45 and joined ARM 22 years ago. Segars has been leading the development of many of its first processors and working in engineering, sales, and business development. Now he is the president of ARM. Segars is known for his laid-back style and his excellent explanation of ARM’s technology. During a conference call Segars said, “We see big opportunities in servers, where we’re just really getting started, and likewise in wireless infrastructure.”
Warren East said of Segars, “ARM is a great company with a strong market position and a unique culture. We take a very long term view about our business and we believe that now is the right time to bring in new leadership to execute on new phase of growth and to plan even further into the future.”
Nathan Brookwood, principal analyst of Insight 64, told PC World
that the CEO change from East to Segars won’t mean that ARM operations change over time. He added, “I never saw a difference in the way the two have thought about the market. ARM is on a roll, and I don’t expect to see much change.”
ARM will not have as much difficulty breaking into the 64-bit server marketplace as Intel is having with changing their founding direction from high-powered CPUs over to low-powered CPUs for mobile computing.
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