Pegatron and Cavium have announced cooperation on the development of ARM-based servers for small and medium-sized enterprise users who aim to keep their IT spending in check, reported Commercial Times on June 26. Based on Cavium's 64-bit ARMv8 ThunderX processor and SoC (System on Chip), the new servers will be designed and manufactured by Pegatron for the use in datacenter and cloud environments. Pegatron forecasts that the company's revenues coming from the server business will grow to NT$800 million (US$25.8 million; US$1=NT$31.0) this year, up 15% year on year. At present, ARM-based servers represent 5% to 10% of the worldwide server market and are projected to reach 20% by 2020, said the report.