Amazon Web Services (AWS), the Cloud arm of retail giant Amazon, has launched cost-effective server chips using the energy-efficient processing architecture from SoftBank-owned Arm.

To help Cloud customers who currently rely on Intel and AMD server chips, AWS Group Vice President of infrastructure Peter DeSantis introduced the "AWS Graviton Processor" as the company began its annual flagship Reinvent conference here on Monday.

In his keynote address, DeSantis said the chip has been designed for scale-out workloads.

"With new computing option, workloads like web server can see costs going down by as much as 45 percent," DeSantis told the gathering.

According to DeSantis, the new AWS server chips are built onAits acquisition of Annapurna Labs. The Israel-based microelectronics company was acquired by AWS in January 2015.

Market leader for Public Cloud infrastructure, AWS is the first big Cloud service provider that has launched Arm-based computing option.

AWS earlier this year introduced computing instances that use servers containing AMD chips.

Currently, Intel dominates the market for chips in both Cloud and on-premises server markets.

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