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Dell Might do AMD

mboverload writes "In a move that will surely make waves in the industry, Dell's CEO, Kevin Rollins, has said they may provide machines decked out with AMD CPU's if their customers really want them. "We are still looking at AMD; they have fairly good technology," said Rollins. "

50 of 417 comments (clear)

  1. They just want better pricing from Intel by pointym5 · · Score: 5, Insightful

    They'll never do it.

    1. Re:They just want better pricing from Intel by Quasar1999 · · Score: 5, Insightful

      Problem is, Intel manufacturing is so expensive, they can't afford to give Dell any more of a discount... their bluff is going to be called... This should be interesting...

      --

      ---
      Programming is like sex... Make one mistake and support it the rest of your life.
    2. Re:They just want better pricing from Intel by Phylter · · Score: 5, Insightful

      Well, truth be told, they play this game once or twice a year.

      It might be worth it to Intel for people to continue to see the P4 symbol on Dell computers regardless of how much their losing on it. Dell does have a large market share.

    3. Re:They just want better pricing from Intel by Anonymous Coward · · Score: 5, Interesting

      It might be worth it to Intel for people to continue to see the P4 symbol on Dell computers regardless of how much their losing on it. Dell does have a large market share.

      Well the large market share is a problem, isn't it? It might be worth doing a deal with a very prominent but low market share "regardless of how much they're losing on it" but losing money on every unit to someone with a high market share is just losing a lot of money. What do you do, raise your prices to every other company to make up for your losses to Dell, making Dell even more competitive relative to them so you sell even more loss making units to Dell? It doesn't work.

    4. Re:They just want better pricing from Intel by Anonymous Coward · · Score: 3, Informative

      "Problem is, Intel manufacturing is so expensive, they can't afford to give Dell any more of a discount... their bluff is going to be called... This should be interesting... "

      Sorry, you don't have a clue here.

      Intel's manufacturing is cheaper than AMD. They have a cheaper process which also gives better yields, and perhaps the most important, they have a much larger volume which usually leads to cheaper costs.

      If you need a hint on what is going on, look at the financial statistics for Intel and AMD. Intel _makes_ money on it's CPUs while AMD barely, sometimes does.

      AMD is happy when Intel have high prices because then they have a chance of getting profit.

    5. Re:They just want better pricing from Intel by rajafarian · · Score: 5, Informative

      Intel _makes_ money on it's CPUs while AMD barely, sometimes does.

      While you may be correct that Intel's manufacturing is cheaper than AMD's, isn't it the case, however, that Intel can (and does) sell slower, less capable processors at higher prices than AMD? It seems to me I've always been able to look at Pricewatch and see equivalent Intel processors priced higher than AMD processors.

      To make my point, I picked a processor at "random," an AMD64 3400+ and looked it up on tomshardware and found this performance comparison. Then I went to pricewatch and found the following prices, AMD64 3400+ = $188, Intel Pentium 4 3.2GHz: $200. I looked up AMD processors and the first article I read said:

      ... the Athlon 64, while not priced as aggressively as AMD's chips in the past, ends up offering better performance than the Pentium 4, for less money. What more could you want?

      Obviously some people want it to say Intel at any cost.

    6. Re:They just want better pricing from Intel by Halvard · · Score: 5, Insightful

      Intentionally losing a lot of money when your are the largest player can be construed, at least in the US, as anti-competitive behaviour. And they are both US headquartered companies.

    7. Re:They just want better pricing from Intel by PhaxMohdem · · Score: 3, Funny

      *Flash!* This just in!! Dell announces intentions to use the PowerPC 940 (G5) CPU's in future models. After tormenting AMD users for years with false hopes the mega PC maker has decided to alienate even more users world wide. Stay tuned for further updates as they become available.

      --

      The Property of One's : "The Oneitude is directly proportional to the Colditude of the one." - S.B.

    8. Re:They just want better pricing from Intel by servognome · · Score: 4, Interesting

      Problem is, Intel manufacturing is so expensive, they can't afford to give Dell any more of a discount
      Intel can manufacture cheaper than AMD. If you look at the 2004 financial numbers, Intel has much better gross margins than AMD.
      Intel Revenue: $34.2B
      Intel Cost of Sales: $14.5B
      Intel Gross Margin: 58%
      AMD Revenue: $5B
      AMD Cost of Sales: $3B
      AMD Gross Margin: 40%

      --
      D6 63 0D 70 89 81 BB 8E 7B 7C 5F 5D 54 EA AB 73
  2. Dear Dell, by Anonymous Coward · · Score: 5, Funny

    Dear Dell,

    Please continue to offer less choices at higher prices.
    Please continue to lock us in to Intel only.
    Please continue to outsource your support to the clueless.
    Please continue to... nevermind, I found another company.

    1. Re:Dear Dell, by LiquidCoooled · · Score: 5, Funny

      News Update

      Kevin Rollins has informed us he has made his decision.
      Dell will not be using amd technology in their systems because of an overwhelming outswelling of support by the general public.

      Citing a posting on popular geek website slashdot.org Mr Rollins said "The posting from such an influential technology website proves they are behind us. The poster in question is a regular well respected member of the slashdot community, having well over 6 millions postings."

      Yes reader, I am as bemused as you, but do not underestimate the stupidy of upper management.

      --
      liqbase :: faster than paper
  3. The year of AMD in Dell? by rylin · · Score: 5, Funny

    Wow! This is turning out to be a remarkable year!
    Not only are we getting Linux on the Desktop, but we're also getting AMD in Dells!

    Just like last year!

  4. Been here... by Spokehedz · · Score: 5, Insightful

    Heard that. I give it a month before they revert back to their intel ways...

  5. /. can influence this one. by Anonymous Coward · · Score: 5, Insightful

    Call Dell and say you want quotes for an Opteron system. Dell does listen to Customers.

    1. Re:/. can influence this one. by 0x461FAB0BD7D2 · · Score: 5, Funny

      And thus began the Slashcall effect.

      People would have to post torrents of mp3s of Skype calls after Dell's tech support in Bangalore goes down.

  6. Dell using AMD? - Right by romanr · · Score: 5, Insightful

    I wonder what kind of concession Dell wants from Intel this time 'round.

  7. Flip-Flop by bigtallmofo · · Score: 5, Insightful

    Does anyone else get the feeling that Dell doesn't know what the heck they're doing with AMD?

    I guess everytime they want to apply pricing pressure on Intel, they submit a story to Slashdot.

    --
    I'm a big tall mofo.
    1. Re:Flip-Flop by ckaminski · · Score: 5, Interesting

      Dells fear with AMD has nothing to do with pricing, and everything to do with execution. The Athlon launch party was PLAGUED by delay and pipeline stalls in getting parts from AMD. Dell sells SO many computers that they don't want to be forced to turn customers away to competitors if AMD started rationing processors.

      Now that the Opteron has turned out to be everything it's cracked up to be, and in mass quantities in the channel, Dell is rightfully readdressing the AMD issue.

  8. Will customers care? by eLamer · · Score: 5, Insightful

    I find it hard to believe that the average dell customer, the essentially computer illiterate home user just looking to check their e-mail and use office software really cares what CPU they have, if they even understand the difference. If people are looking for a high-end machine to get better fps at "insert game here," they usually aren't even looking at Dell.

    1. Re:Will customers care? by Blackknight · · Score: 4, Informative

      Dells biggest customer is the U.S. government and corporate buyers. While some of them might not care I know the .gov is pretty picky about what goes into their systems.

      Also a lot of web hosting companies use Dell servers, it would be nice to be able to order dual Opteron boxes that include a support contract.

    2. Re:Will customers care? by Anonymous Coward · · Score: 5, Interesting

      Hm. Here in Ireland, Dell has their linux clustering group. I've got a feeling they'd love to offer opteron clusters to the european market, anyway. Dell's servers aren't quite as nice as IBM's, but sure are cheaper, and still have many features that home users and even ordinary linux geeks don't understand or need that add to the cost of professional machines for large clusters (remote management related, mainly, but also hot-swapping and such). I know they've probably lost several EU tenders for hundreds-to-thousands-processor clusters to Opteron vendors (note that IBM already offers cluster-oriented opteron servers...).

  9. Dupe from Dell by strider44 · · Score: 3, Interesting

    Haven't they already said that several times? Someone at dell might just really hate AMD enough to play games with them.

  10. this guy is a deep sleeper by l3v1 · · Score: 5, Funny

    they have fairly good technology," said Rollins

    :] yup, and nukes can do a fairly large damage, and B. Gates if fairly wealthy, and Antartica is fairly cold, and

    --
    I am putting myself to the fullest possible use, which is all I can think that any conscious entity can ever hope to do.
  11. swap the words in the blurb.. by CrackedButter · · Score: 3, Insightful

    where ever it mentions AMD, swap this with linux and you can gauge the progress here. Dell is always "might" this and that.

    1. Re:swap the words in the blurb.. by timeOday · · Score: 5, Insightful
      I suppose you're right. However, compared to Linux vs Windows, there is a difference - from the end-user standpoint, Intel and AMD CPUs are practically indistinguishable, so it's an awfully easy switch.

      That said, I don't care too much. Even without Dell, AMD already has enough market pull to deflate Intel's once-ridiculous profit margins by about all they can. AMD processors aren't all that much cheaper than equivalent Intel anymore.

      I'm not sure what's behind the stagnation in CPU and RAM offerings and prices the last couple years. Maybe the weak dollar?

  12. In other news by LiquidCoooled · · Score: 5, Funny

    RIAA setup bittorrent server,

    Duke Nukem Forever went gold,

    Microsoft unconditionally released source code to windows.

    Slashdot impliments dupe filter and story/author/editor moderation.

    --
    liqbase :: faster than paper
  13. Fairly Good? by gihan_ripper · · Score: 3, Insightful

    Rollin's noncommittal comment that they have 'fairly good technology' certainly stands out. It confirms the impression he's trying to convey that Dell would only be interested in going with AMD if the customers really want it.

    Perhaps he intends to use this as a bargaining chip not with Intel, but with AMD!

    --
    Phoenix, Boston, Little Rock, see a pattern?
  14. In yet more other news by panurge · · Score: 3, Funny
    Cardinal Ratzinger said the next Pope might not be a Catholic
    A large number of bears were seen queueing outside a restroom

    Personally, though, I'm typing this on an AMD-64 Acer. Behind it is an iMac. What is this Dell and this Intel of which you speak?

    --
    Panurge has posted for the last time. Thanks for the positive moderations.
  15. AMD == good for the bottom line by dubdays · · Score: 3, Interesting

    Why haven't they done this before? I mean, a large part of their business is selling to corporations. AMD chips are very stable compared to what they used to be, they're cheaper, and they're plenty fast enough for standard business desktops. Being cheaper, you'd think most companies would go with the AMD, so that when it came time to upgrade a few desktops, it wouldn't break the budget.

    Personally, being the IT guy at my company, I always buy AMD systems. About the same bang for way less bucks. And let's face it, the suits up top love it when you can add a bit more to the bottom line.

  16. Dell flirting again to get Intel jealous... by Krankheit · · Score: 5, Interesting

    We have seen these articles before. However, with Intel having to switch to dual core to increase performance due to nearing a brickwall in the area of performance increase via CPU clock increasing, perhaps Dell sees AMD as a better partner. AMD is no longer the butt of egg frying on CPU jokes thanks to their new power saving chips that actually put out less heat than Intel's Pentium 4 offerings. If I were him, I would start with AMD64 servers, because without a 64-bit AMD server offering, I think Dell is losing alot of orders to other companies like MBX.

    --
    Powered by caffeine and sugar; BSD
  17. What? by CypherXero · · Score: 5, Funny

    FTFA:"We are still looking at AMD; they have fairly good technology"

    Fairly good? What rock have they been hiding under all these years?

  18. seen before... by diegocgteleline.es · · Score: 3, Informative

    This already was said in the past. It won't happen.

    See, Intel has 80% of the desktop market and 90-95% of the x86 server market. This is quite unlike to change. It doesn't really matters how fast are AMD CPUs, people seems to care more about the chipsets, and that's the achiles' heel of AMD, they just make CPUs not chipsets.

    With intel, I can buy a motherboard with a intel or serverworks chipsets, which is not exactly the same than a VIA/Nvidia shitty chipset that people uses with AMDs.

    1. Re:seen before... by gl4ss · · Score: 4, Insightful

      *With intel, I can buy a motherboard with a intel or serverworks chipsets, which is not exactly the same than a VIA/Nvidia shitty chipset that people uses with AMDs.*

      yeah it's not the same. via/nvidia offer more things people want on their desktop with reliability that is good for desktop(no problems there to be frank)while being lower priced....

      what exactly do you perceive the problem to be with, say, nforce3 chipset? or via's kt800? maybe you just buy intel because you don't bother to keep up with the choices?

      --
      world was created 5 seconds before this post as it is.
    2. Re:seen before... by Anonymous+Luddite · · Score: 3, Interesting

      >>>> With intel, I can buy a motherboard with a intel or serverworks chipsets, which is not exactly the same than a VIA/Nvidia shitty chipset that people uses with AMDs.

      >>You're obviously not a gamer.


      I think what DELL needs to do is start a second in-house "brand" just to build and market AMD based solutions. - When selling to business, it can be blown off as "our gamer line" and they can keep on pimping Intel... When sold to everyone else they can call it "our cost effective" line.

      It would work.

    3. Re:seen before... by NormalVisual · · Score: 3, Interesting

      I'll second that, given that I own a MythTV setup with two Hauppage cards. Runs just fine on my ancient PIII-700 with a 440BX chipset, won't run acceptably at all on my VIA-equipped machine with a CPU clocked at more than twice that. Heaven forbid VIA might consider DMA performance to be important.

      It's a real shame too - those Hauppage cards bring CPU utilization down to almost nothing, so you can still get some reasonably use out of your machine while you're recording two channels and playing back a pre-recorded show to another client.

      --
      Please stand clear of the doors, por favor mantenganse alejado de las puertas
  19. Bit tardy for an April fools joke ... by RedDirt · · Score: 4, Interesting

    Dell's talked about this before and it's always seemed to me that they play the AMD card in order to force Intel to give 'em a sweeter deal. Sort of like when AOL threatens to use Netscape instead of IE as their default web browser. Just exerting leverage - they won't really ever do it (though I'd love to be proven wrong).

    --
    James
  20. Actually by Dachannien · · Score: 4, Interesting

    "We are still looking at AMD; they have fairly good technology," said Rollins.

    AMD's technology is on par with Intel. It's their marketing that falls short.

    1. Re:Actually by SunFan · · Score: 5, Informative

      AMD's technology is on par with Intel.

      The Opteron vs. Xeon reviews lately show AMD winning quite handily. In one review the Xeon overheated, and the author had to keep the case open to finish the tests!

      I think Intel has put so many resources behind Itanium, that AMD64 and Opteron really took them by suprise. Just comparing the HT architecture to Xeon's old shared-bus architecture is really telling. The fact that Sun is jumping all over Opteron and not Xeon is also interesting.

      In x86-land, AMD is now tremendously underrated, and Intel is riding on pure inertia.

      --
      -- Microsoft is the most expensive commodity operating system and office suite vendor in the marketplace.
  21. If Dell does AMD, nVidia will be pissed... by argent · · Score: 4, Interesting

    I mean, nVidia just did this new P4 chipset to let you pull their dual-GPU trick on Intel, and since all the hardcore gamers use Athlon-64 about the only market for this chipset is Dell. If Dell starts shipping AMD there goes the market...

  22. Fairly Good by Paradise+Pete · · Score: 5, Insightful
    "We are still looking at AMD; they have fairly good technology"

    Nobody seriously considering changing suppliers calls the new supplier's stuff "fairly good." What's their slogan if they make the switch?

    Dell Computers - Now with fairly good technology!

  23. Re:Buggy? by Anonymous Coward · · Score: 3, Informative

    Funny.. I run an AMD Athlon XP2600+ and have been running this system with an Abit board for about 2 years now.

    I don't remeber the last time it crashed on me actually - it has been impeccably reliable, and performance is still good despite its age!

  24. Good Move by fatman22 · · Score: 5, Funny

    If Dell, who has a significant presence in Austin, were to start buying from AMD, who also has a significant presence in Austin, they may be able to get some tax breaks from the Austin city council, who also have (unfortunately for Austin residents) a significant presence on Austin.

  25. I'd like to see AMD tell Dell to piss off by JudgeFurious · · Score: 4, Insightful


    I know it's an impossibility and AMD would be insane to do it but Dell seems like they've played this particular note so many times in the past that I'd like to see AMD answer once with a press release going something like this:

    Today, in one of the strangest announcements by a technology company in recent memory AMD said that their rival Intel should in no way be concerned about the recent comments from computer maker Dell and that no Dell computer would ever feature an AMD processor regardless of how much Dell was willing to pay for them. Said AMD "Dell makes crap and we won't be a party to it at any price!"

    --
    Appended to the end of comments you post. 120 chars.
  26. Re:Buggy? by zakezuke · · Score: 5, Informative

    I have an AMD box that I put a video-capture card into and I wouldn't be able to capture more than a few minutes of video before the system would either lock-up or spontaneously reboot.

    It's just as likely you have a flacky motherboard or flacky ram as chipset incompatibilities. For example, my system here started to suffer from random reboots and crashes till I finally isolated the problem to the memory having single bit errors when warm. I run an AMD 2800xp, have 3 drives, and my PCI slots are full. While my cooling system should be adquate [120mm case fan running 5v rather than 12v, 90mm power supply fan, 70mm cpu fan, 60mm GFX fan]. My issues go away when I use PNY memory, and they go away when I add fans and run coverless. I am able to capture up to 4hrs of video without crashing.

    One of the reasons I started going with VIA chipset motherboards was the compatibility with a vast variety of memory including that cheepo stuff. The disadvantage is you get given this cheepo stuff that people can't use on their intel chipsets that has intermittent hard to diagnose issues. Also many OEMs designate AMD as the cheep system and use sub standard parts doesn't really help matters.

    There were issues with non-intel chipsets in the 1990s. Microsoft was pretty much an intel only house and no thought was given to anything else. I remember many headaches with TNT2 video cards and both Cyrix and VIA chipsets. But these days AMD is very popular at MS esp since the AMD Opteron.

    Why not bring up your issues on your friendly neighborhood capture card news group, and your motherboard's newsgroup. If nothing else there always is someone out there to help you with trouble shooting, or perhaps someone already documented the issue.

    --
    There is no sanctuary. There is no sanctuary. SHUT UP! There is no shut up. There is no shut up.
  27. Re:Just how monopolistic do Dell and Intel have to by ckaminski · · Score: 3, Interesting

    No, everyone's missing it. It's not pressure on Intel, it's pressure on AMD. Dell is saying to AMD, you must, ABSOLUTELY FUCKING MUST, meet our part quota every quarter, no shortchanging us, no sending our parts to IBM, Acer, Toshiba, because we're gonna ship 250,000 units this year, and we're not going to lose our hardwon customers to someone else. So get your shit in gear, and once you prove you can keep the pipeline FLOODED, we'll talk.

  28. Dell is screwed by Brian+Stretch · · Score: 3, Interesting

    AMD doesn't have the manufacturing capacity to supply the entire world + Dell. If Dell loses their massive Intel CPU discounts, they lose the bulk of their competitive edge. If they don't offer Opteron servers (especially now that the dual-cores are coming out), they're going to take a nasty hit to their server sales. Until AMD has the capacity to mostly replace Intel, Dell just has to smile and say "Do you want HypeThreading with that?" and hope people keep buying. It helps that most people are too clueless to know what they're missing, plus even a Celeron is enough to "surf the Information Superhighway, d00dz!"

    Next year, when AMD's new 65nm fab is up and running and Charter (and IBM?) start fabbing AMD CPUs too, THEN things will get interesting.

    1. Re:Dell is screwed by supabeast! · · Score: 3, Insightful

      "If they don't offer Opteron servers (especially now that the dual-cores are coming out), they're going to take a nasty hit to their server sales."

      Server sales to whom? All those IT shops out there where the sysadmins decide what hardware to buy based on performance reviews they read on the web? Big IT decisions regarding vendors aren't made by people who give a damn about the nerd cred of running customized open-source apps on kewl AMD gear, they're made by CTOs and bean counters concerned with getting low prices and support contracts. Unless Gartner, Oracle, and Microsoft partner up on a series of high-profile reports about dual-core Opteron chips offering signifigant cost/performance savings over Dell's intel servers, Dell is still going to be the king of the x86 server world.

    2. Re:Dell is screwed by Brian+Stretch · · Score: 3, Interesting

      Big IT decisions regarding vendors aren't made by people who give a damn about the nerd cred of running customized open-source apps on kewl AMD gear, they're made by CTOs and bean counters concerned with getting low prices and support contracts.

      Maybe if the sysadmins tell the bean counters that if they buy Opterons they can buy fewer servers to do the same amount of work and burn far less electricity per server, which also cuts air conditioning costs (not to mention eliminating the "How the heck are we going to power and cool these Xeon blast furnaces?!" question). If "nerd cred" is having a clue then nerds ought to help management to get one. Though, as you point out, that's easier said than done.

      Microsoft and Oracle are rather geeked about Opterons, BTW.

  29. Dell Motto: We're fairly good. by standards · · Score: 4, Funny

    "We are still looking at AMD; they have fairly good technology," said Rollins.

    He went on to say that "Dell excels to use as many fairly good components as possible. Dell strives for mediocre computers, and that can only be done by using adequate, middling componentry sourced from the most average manufactures in the world"

    Mr. Rollins went on to attack other vendors. "IBM and Apple, well, they think they produce pretty good products too. But the public knows better - excellent design, manufacturing, componentry, and software does not make for a pretty good product. That's why Dell is the market leader".

    Many consumers agree. In recent reports, Dell consistently hits the "adequate" mark in customer satisfaction. "We don't want our customers to think we're better than anyone else - people are put off by that kind of talk. It's kind of like the Bush/Kerry campaigns. We have to work very hard to be average in this business."

    Dell is now considering AMD, but Dell still has some concern that AMD processors may not be average enough. Rollins says that Dell looked at AMD's products a few years back, and "they kicked some butt. But that's not the Dell way. We're hoping that now their products are getting a little dull - but only some fairly standard analysis will tell. We hope that they'll hit our mark, more or less."

  30. Intel manufacturing cost us much better than AMD by Glasswire · · Score: 5, Insightful

    Look at the published % margins of Intel and AMD and realize that this is much greater gap than you would get simply from Intel's ability ot command a price premium -compared to AMD, Intel's manufacturing costs per die are LESS, so it's not "so expensive".

    Say what you want about AMD's microprocessor design prowess, they are definately not in Intel's league in terms of wafer yield and other areas of manufacturing prowess that dictate cost to produce.

    Many clueless /.ers are infuriated that the stock market doesn't reward AMD stock price like that of Intel stock price, but if they understood that share value is determined by the ability to make money, not just pump out cool stuff, they'd understand. Making money means keeping your cost-to-selling-price ratio healthy and AMD doesn't manufacture at lowest price and doesn't sell for a premium price.

    (BTW, please don't assume this represents some kind of consumer-friendly behaviour for AMD - if they could charge a big premium over Intel's product, they would in a heartbeat. And of course, the poster that said this is a price negotiation tool on Dell's part is correct)