|
|
Intel and The Dell-AMD Deal
Invite a Friend
Free Email Alerts
Intel takes a hit as Dell opts to use AMD’s ‘Opteron’ in
multiprocessor servers, ending its Intel-only strategy.
|
|
On May 20,
2006, US-based Dell Computers (Dell), the world’s largest PC
manufacturer, announced its plans to enter into a deal with Advanced
Micro Devices[1] (AMD) under which it would use AMD’s Opteron[2]
microprocessors in the server segment. The announcement left analysts
surprised as Dell had always used microprocessors from Intel Corporation
(Intel).
Commenting on Dell’s announcement, AMD’s Senior Vice President, Marty
Seyer, said, “We welcome Dell, and Dell customers, to the world of
AMD64.” He added, “Dell is a customer-focused company and we’re pleased
to see that they are listening to their customers and providing them the
choice of innovative AMD products.”[3] |
Dell president and CEO Kevin Rollins pointed to AMD’s
technology lead on Intel in the 64-bit[4] category as the primary reason for the
shift in Dell’s Intel-only strategy. He said, “They’ve (AMD) been getting better
and better. The technology is better. In some areas they’re now in the lead on
Intel. That is what is interesting us more than anything.”[5]
Dell preferred to use AMD’s Opteron processor in the server segment as the
processor had been doing extremely well in this segment. As of May 2006, AMD had
an estimated 45% share in the four-way server[6] segment in the US, which was
considered to be the most profitable segment for computer manufacturers.
|
|
Continued... |
|
|
[1]
Established in 1969, AMD is a leading provider of innovative microprocessor
solutions. As on March 31, 2006, the company reported revenues of US$ 1.33
billion.
[2]
Released in April 2003, Opteron is the first of AMD's processors intended to
compete in the server market.
[3] Jay
Lyman, “Dell to Offer AMD Opteron-Powered Servers,” www.technewsworld.com,
May 19, 2006.
[4] AMD64
(also x86-64 or x64) is a 64-bit microprocessor architecture and
corresponding instruction set designed by Advanced Micro Devices. It is
currently implemented in AMD's Opteron and other processors like Athlon,
Turion, and Sempron.
[5] Susan
B.Shor, “Dell warns Intel with talk of AMD inside,” www.technewsworld.com,
Dec 11, 2004.
[6] A
four-way server provides fast performance and scalability by supporting
multiple CPUs. In this case it would support four processors. The computer
architecture used in four way servers is called SMP (Symmetric
Multiprocessing). |
|
To download this micro case study (No. MCBS0005 ) click on the
button below, and select the case from the list of
available micro cases:
More Micro Case Studies
Apple Launches Fifth Avenue Retail Store
Exxon’s Problem of Riches
Microsoft Unveils IE 7 Beta
Department of Posts Targets Private Couriers
Google and Sony - Buzz Marketing ‘The Da Vinci Code’
Birlas Buy Tata’s Stake in “Idea Cellular”
Microsoft’s "People-Ready" Campaign - Targeting IBM ?
Google and the 'Click Fraud' Menace
Real Madrid’s ‘Galacticos’ Strategy: Losing Steam?
Bird Flu In India
The Death Of Aibo
The ‘Le Clemenceau’ Controversy
BPO’s Tap into Rural India’s Potential
Online Advertising In India - The MSN India And NDTV Media Tie-Up
The Pixar Buy - Disney’s Creative Mojo?
Labor Unrest At Toyota India
Coca-Cola Faces Another University Ban
|
More Classifications...