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Dell Still Intel Only

wyckedone writes "Dell Computers has no plans to offer the new dual-core AMD Opteron even though it has been proven that "Opteron's integrated memory controller and multiple Hypertransport interconnects help it outperform Intel's Xeon processor on many benchmarks, especially those that measure the performance of memory-intensive applications.". HP, IBM and Sun Microsystems have all announced that they are going to release servers based on the new AMD chip. Why not offer customers an alternative that has better performance instead of risking the lose of those customers to another vendor that does? Intel has no plans to release a dual-core Xeon until 2006."

45 of 399 comments (clear)

  1. SFW by gowen · · Score: 5, Interesting

    If Dell had a monopoly on PC manufacture, this would surely be big news. As it is, they're a company who've weighed both sides of an idea, and made a business.

    Remind me why I should care?

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    1. Re:SFW by Anonymous Coward · · Score: 5, Insightful

      Dell uses only intel CPUs for the same reason they only sell M$FT on the desktop. They get better deals from the other gorillas by staying exclusive with them.

    2. Re:SFW by SatanicPuppy · · Score: 5, Insightful

      Bah. Weighed both sides? I don't think so. They have too much infrastructure tied up with intel.

      However, by saying publicly, "We're thinking nice thoughts about AMD" they can pressure intel to lower their prices, so as not to lose business from one of the larger home pc manufacturers.

      Business as usual.

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    3. Re:SFW by gowen · · Score: 5, Insightful
      They have too much infrastructure tied up with intel.
      Well of course they do. And that would be one of the factors they considered when weighing the options.

      Weighing the options does not mean just choosing which is the fastest processor, or which is the best technology, but weighing how much outlay it would cost to retool if you want to switch.

      Sometimes it's smart business to pick the lesser technology, if it keeps your costs down.
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    4. Re:SFW by Ryan+Amos · · Score: 4, Insightful

      Trust me, if Dell felt it would be more profitable to use AMD, they'd use AMD. The business world has no illusions of brand loyalty (unless the CEO of AMD screwed Michael Dell's wife or something.) As it is, if you want an AMD based server, IBM happens to make some pretty nice ones, and they run 64-bit linux...

    5. Re:SFW by ePhil_One · · Score: 5, Insightful
      They get better deals from the other gorillas by staying exclusive with them.

      One of the big things they get is first cut at the latest technology. The Dell XPS Gen5 has been announced as the first system to use Intels new "Dual Core" chips, which gets them all sorts of Free (as in Beer) advertising. Charging Dell a lower price might get them in trouble, but there are few laws about who you have to give access to early technology mules.

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    6. Re:SFW by Jim_Maryland · · Score: 4, Informative
      While generally true, you really need to consider this from a training/maintenance/support option too. What is the cost of adding a new offering?

      Training production and support staff

      Additional inventory storage: motherboards, CPUs, fans

      Multiple BIOS

      Adjustments to tech support website to make sure the average home PC user can easily find the right updates All these issues, and likely many more, must be addressed when expanding your product offering. You also need to look at where Dell makes their money. Do companies buy AMD based systems? I haven't switched jobs in a while but my current and previous employers were exclusively Intel for the MS Win32 systems.

  2. Dude! by TimeTrav · · Score: 5, Funny

    Dude! Youre not getting a dualcore!

    FP

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  3. from the duh dept. by bersl2 · · Score: 4, Interesting

    It's Dell. They use these rumors to get a better deal from Intel.

    Or so I've heard.

    1. Re:from the duh dept. by harrkev · · Score: 5, Informative

      You, sir, are correct. One of the most insightful explanations that I have read can be found here, in an article entitled "Dell and AMD." Worth a read, even for an article that is two months old.

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  4. Makes perfect business sense by Anonymous Coward · · Score: 5, Insightful

    Why not offer customers an alternative that has better performance instead of risking the lose of those customers to another vendor that does?

    1. AMD can't produce enough chips to satisfy Dell's demands

    2. Intel has proven a reliable platform for Dell

    3. Most end user's don't care

    1. Re:Makes perfect business sense by Anonymous Coward · · Score: 5, Insightful

      They really expect the AMD based Dell's to be so much better than the Intel ones that they'd make AMD run out of cpus?

      Business parterners that can't meet demand are a liability. AMD has a very limited manufacturing capability compared to Intel. The kind of production runs that Dell requires is something that AMD can't accommidate, certainly not as long as they're supplying HP and white box makers.

    2. Re:Makes perfect business sense by Tenebrious1 · · Score: 5, Insightful

      3. Most end user's don't care

      No, you have it backwards. If customers didn't care, they'd pick the faster AMD chip. Home users care about what's "inside"; which doesn't mean they know any better. It's just that they've seen the commercials, and their computer "expert" friend advises to get the Intel processor. So that's what they ask for when they call Dell, and that's what Dell gives them.

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    3. Re:Makes perfect business sense by TopShelf · · Score: 5, Insightful

      The supply chain that supports Dell's business is insanely demanding, and there's a lot more to it than merely producing enough CPU's. It's having the right number of each variety in place at a particular point in time - not too early, certainly not late. Integrating a new CPU supplier into that chain would be a HUGE risk for Dell, so the benefit would have to be overwhelming for them to pursue it...

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    4. Re:Makes perfect business sense by kebes · · Score: 4, Insightful

      Exactly. The fact of the matter is that end-users (and managers that are in charge of buying lots of machines) have just a bit of knowledge, so marketing has a huge effect. The words "Intel" and "Pentium" are deeply ingrained in the minds of most people, whereas "AMD" is really only known to geeks. Honestly, I know tons of really smart people who don't know much too about computers... if they had to pick a "fast machine" off a list, they would gravitate towards the specs that included the word "Pentium 4." Maybe it's sad, but Intel's marketing is way better, and this means they get lots of sales based solely on name. Dell knows this and isn't going to stop putting the "Intel Inside" stickers on their computers anytime soon.

      Remember, Dell's main market is not geeks (who will build their computer from scratch anyway), it is the mass market.

    5. Re:Makes perfect business sense by Otter · · Score: 4, Interesting
      The kind of production runs that Dell requires is something that AMD can't accommidate, certainly not as long as they're supplying HP and white box makers.

      This is the smartest point I've seen made on this story. AMD fanboys may want to think about what they're wishing for -- if AMD's #1 priority becomes feeding Dell, keeping hobbyists happy is going to fall way down on their list.

  5. Because by Anonymous+Custard · · Score: 5, Insightful

    Why not offer customers an alternative that has better performance instead of risking the lose of those customers to another vendor that does?

    Because Dell looked at the numbers and determined that the exclusively-Intel price discount that Dell gets is more valuable than the potential revenue they'd get by offering AMD.

  6. Intel Paper-Launch(TM) by Anonymous Coward · · Score: 4, Interesting

    Intel is paper-launching it's "desktop" Dual Core CPUs today ($1000+ desktop CPUs... Mmmm..) Meanwhile, AMD has supplied IBM, HP, etc with Dual Core CPUs for their server lines, which you can order today and receive within a few weeks.

    This generation goes to AMD, pure and simple. The Opterons are going to swallow the Intel systems in performance whole. Maybe even price in some configurations.

  7. Business Choice by teiresias · · Score: 4, Insightful

    This means more business for HP, IBM and Sun Microsystems (if of course Businesses in the market for servers choose AMD).

    Dell has chosen to stick with Intel which isn't the worse choice. It means lost profits but it also means less support for two distinct chips.

    It is up to the above three companies to prove to Dell (and Intel) that AMD is a viable alternative by speaking with their dollars and buying Opteron servers

    --
    -Teiresias
    1. Re:Business Choice by Otter · · Score: 4, Insightful
      Also, people here tend to assume that there's only one acceptable answer to any business question. (Partly becuase they turn everything into An Epic Struggle Between Good And Evil, partly out of simple economic illiteracy.)

      There is no reason why there can't be a viable, profitable market for AMD-based servers and for it simultaneously not to be in Dell's interest to pursue it. There's room for both Dell and Sun (and Alienware and white box vendors) to coexist, just like, believe it or not, it's possible for both Americans and Indians to have jobs.

  8. It would not be good for Dell's bottom line by Theovon · · Score: 5, Insightful

    If Dell decided to use Intel and AMD processors, they would have to dedicate resources to another product line. It's likely that for all their different models, Dell has a very limited number of motherboards and other such pieces of hardware. If they were to adopt AMD, they would have to dedicate development and support resources to a whole other set of product lines. It's just not worth it. They have their designs that work, they have their production lines in place, and they have their customer service set up. Adding AMD just makes things doubly complicated and eats into their profit margins. There is a huge barrier to adoption that they are just not going to be able to justify, no matter what the "demand" seems to be. People think AMD boxes would be cheaper, but for Dell to support them, they would not be.

  9. History: Failure to learn, doomed to repeat by Dark+Paladin · · Score: 4, Interesting

    Didn't something like this happen with IBM?

    The i386 chip came out, it was faster, but IBM decided not to move right away - after all, who needed all of that extra speed? The i286 was fine!

    If memory serves me right, I believe that Compaq came out within seconds telling anyone who would listen that they had i386 processors now - and made it their policy to always support the latest and fastest chips.

    I wonder if this will hurt Dell at all. Odds are, with the enterprise vendors, not too much - but all it takes is a little mistake to give your competitors a chance to catch up. And as slim as margins on PCs are, I'm not Dell can afford to slip up in a situation like this.

  10. Not to flame by Kipsaysso · · Score: 5, Insightful

    But if you are buying a Dell PC then you probably do not care to horribly much about the microseconds that AMD can buy in you in comparison to the Intel chip.

    Which isn't to say your 12 year old doesn't, but that is besides the point.

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  11. Dell's customers not asking? by mindaktiviti · · Score: 5, Insightful

    Could it be that Dell's customers are not asking for AMD? Maybe performance isn't a big issue for checking your email and typing out that King Lear essay?

    I think the disadvantage here is that Dell sometimes supplies companies with computers and they're the ones without a big choice. Home users tend to pick dell because it's the easy thing to do.

  12. Does Dell really need AMD by Anonymous Coward · · Score: 5, Insightful
    HP, IBM and Sun Microsystems have all announced that they are going to release servers based on the new AMD chip.

    Dell has never offered AMD. Yet they have grown to be the largest PC company in the world. HP and Compaq can combine and Dell still outperforms them. IBM decides to sell off their PC division. Sun is fighting for its life.

    I'm a big fan of AMD, but the "everybody else is doing it" argument has always been a stupid one. It is more stupid when "everybody else", even combined, have withered against the "not everybody else" competition.

  13. Dell is afraid... by xeon4life · · Score: 5, Insightful

    Verily, I hear the propaganda spewing from the mouths of the less computer savvy: Somehow they've been brainwashed through the years, I assume by Intel's Blue Men.

    "B-b-but, it's Pentium 4 EXTREME Edition with HT Technology!!1one"

    "B-b-but, Intel's better for gaming!"

    "B-b-but, If it's not Intel Inside(tm), then it's not worth a damn!"

    "B-b-but, Is Windows XP even compatible with AMD?"

    --
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  14. Of course. by cnelzie · · Score: 4, Interesting

    Why is this news? Dell using AMD is just as possible as MS embracing Open Source methodologies and freely giving away all of their sourcecode.

    Both are a possibility, but until either company is losing significant marketshare by staying the course they have traveled for so long... It won't happen.

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  15. There are many other reasons to switch from dell by acherrington · · Score: 4, Informative

    We used dell hardware (windows enviornment) for 2 years, and switched right back to HP.

    The hard drives constantly crashed, raid never worked, and restoring from tape during production time was constant. Parts were never available, and the constant response from their help desk was "flash the bios" or "flash the firmware" when it pertained to nothing that was going on.

    At one point they were just sending us new servers for free to fix the broken ones. Note: Those new ones then broke constantly as well.

    I think there are plenty of other reasons to switch from dell than a lack of an AMD chip in a server.

    (note: I do like dell workstations and home PCs and laptops... just not their servers)

    --


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  16. Don't underestimate a company as big as Dell by the_mutha · · Score: 5, Insightful

    One thing you can all bet on. Dell does its numbers. If it didn't, it wouldn't be where it is now.

    In the end it ALWAYS comes down to numbers. Intel probably gives Dell quite a discount for having Dell's exclusivety. Most corporate customers don't mind the performance difference, since they will never get fired for buying Intel... on the contrary, in the corporate / server world, Intel has a great reputation.

    The press fanfare generated by such announcements probably is beneficial to Dell. Remember, (almost) any publicity is good publicity. Everyone that read this thread now remembered Dell exists :)

    Don't worry, one day they probably will conclude its more profitable to also sell AMD - probably when AMD manages to give them a nice discount too :)

  17. In Other News by CleverNickedName · · Score: 5, Funny

    Dell Computers has no plans to offer the new dual-core AMD Opteron

    Also in the news:
    - Ford has no plans to offer the new Honda engine.
    - Suse has no plans to offer the new SP2 patch.
    - Cadbury's Roses has no plans to offer the new Quality Street fillings.

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  18. To answer your question... by stlhawkeye · · Score: 5, Insightful
    Why not offer customers an alternative that has better performance instead of risking the lose of those customers to another vendor that does?

    Any number of reasons come to mind, all pulled from my posterier based on what little I know about Dell's business model and relationship with Intel, but try any of these on:

    1. Dell has a current contract with Intel dictating that only Intel chips can be shipped in their machines
    2. Intel offers a significant price cut on their chips so long as Dell doesn't offer any competing chips
    3. Various aspects of the other chips (heat generation, physical dimensions, whatever) make it impractical for use on Dell's boards
    4. Setting up production lines, testing procedures, quality control, etc, for a new brand of chip is prohibitively expensive
    5. Custom choice is irrelevent when you're still making profits; clearly, Dell's customer base largely doesn't care, and the risk of losing them is minimal. Most likely, the kind of user that really cares about performance isn't buying a stock Dell.

    It could be any combination of the above or something else entirely. Maybe Dell is just making a horrible business decision, but I'm guessing that they've run the numbers and decided that its in their best interests to stay the course. Decisions that seem to be perplexing to us almost boil down to money. Their financial analysts have convinced management that the company is best served this way.

    --
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  19. Dell's not stupid... by dmayle · · Score: 4, Interesting

    Why not offer customers an alternative that has better performance instead of risking the lose of those customers to another vendor that does?

    Why not allow a hugely successful company figure out what's best for it's customers rather than assuming that they would want to please an AMD fanboy.

    It's a bit trollish, I know, but Dell isn't hurting. They're doing a great job, even without using AMD. Perhaps doubling the number of configurations would increase their stock on hand, and that would cost more money and cut down on profits. Perhaps it would add complexity to the orders, which might result in poorer customer service. Perhaps the number of customers on a given hardware platform would change, decreasing the amount of testing and QA they could perform per platform, resulting in a loss for customers and vendor alike.

    Why not accept the fact that there is more than just a one line blurb, and that maybe Dell actually knows what they're doing...

  20. and their tech support... by LegendOfLink · · Score: 5, Interesting

    ...is still Indian only.

    Not to be a pessimist, but I've dealt with Dell Tech Support 23 times this past year, every time with India, and I had only 2 positive experiences.

    The company I work for has a lot of sales folks, who like to break laptops and all. So, I usually end up calling Dell for replacements (fulfill warranties and such) and guess what, I ALWAYS have to talk to Tech Support first. Every single time it's "reboot the machine". Come on! And good luck trying to let them know all you need is a replacement part, they just ask you a bevy of questions first and THEN transfer you when they can't understand you anymore.

    They should just automate the damn tech support, it's pretty much the same effect. Those folks cannot understand you, and you end up either with a dropped line or worse, a transfer to another tech support person. BAH!

  21. In other news... by stretch0611 · · Score: 4, Funny
    Just after the surprise announcement that Dell won't do intel, Microsoft came out and announced that it has no plans to offer MS Office for Linux.

    These announcements have shocked the geek community so bad that highly intelligent virgins all over the world are committing suicide.

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  22. Intel launches Dual Core TODAY by amichalo · · Score: 4, Informative

    check it out here

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  23. Another reason to use AMD by un1xl0ser · · Score: 5, Insightful

    AMDs consume less power, and run much cooler.

    I don't know how many people are thinking about the cost of infrastructure to host servers, but that is another reason to use AMD based systems.

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    1. Re:Another reason to use AMD by WillAffleckUW · · Score: 4, Interesting

      The amusing thing is that Dell has always been known for doing such tricks as overclocking their processors, having laptops that ran so hot they'd burn up, and generally not realizing that power consumption is a big deal to modern businesses.

      So it's not surprising to read that they are avoiding the AMD chipset, if it consumes less power and runs much cooler.

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  24. Because Micheal Dell likes to reduce complexity by G4from128k · · Score: 4, Insightful

    At a conference, Michael Dell spoke about this issue, indirectly. He argued that if Dell can satisfy most of the demand with a smaller number of parts, it will do that. I've heard other Dell managers speak and the magic number is usually 3 -- 3 graphics cards, 3 HD sizes, 3 speed levels, etc. Although Dell's factories are amazing in their ability to pump out customized PCs, each added part variant adds costs to the entire system.

    Dell would rather lose a few percent of sales that drive the costs of the entire factory higher.

    --
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  25. Advertising is what Sells by thebdj · · Score: 4, Insightful

    The odds of them not offering AMD chips hurting their business might as well not exist. The fact is Dell and Intel spend more on Advertising then most the other manufacturers combined. How many of you have seen AMD commercials? This is why AMD is SO much cheaper. They lack the marketing cost that Intel does. I doubt the Blue Man Group comes cheap.

    As for Dell they have always thrown tons of money at Advertising and I would dare say more than most other PC manufacturers with maybe the exception of IBM, though they typically target more business users in the ads it seems. In the end stupid commercial get stupid people to buy stupid things. The smart ones know what they are doing and will buy the best performance for the price.

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  26. Re:what by Tassach · · Score: 4, Insightful
    Unfortunately, there are a lot of companies (and government agencies) out there who single-source all their x86 hardware from Dell.

    If you work at a place like that, it's a tough sell (if not a bureaucratic nightmare) to get hardware from a "non-preferred" vendor.

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  27. I can answer that. by geekoid · · Score: 4, Insightful

    Becasue consumers do not care about this technical pissing contest that is going on in the industry. They don't care, because they don't have to. The performence difference is squat in the real world.

    Keeping that in consideration, why spend the extra dollrs supporting another chip that doesn't have brand awareness amoung Dell's customers?

    People don't want faster computers anynmore, they want computers that work and that they don't have to worry about. The want their computers to be the next generation TV. Some may scoff, but the technical challenge of making a computer that worry free is far more challenging then another 10% speed increase that can only be measured running certian programs in lab like conditions.

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  28. Also... by artemis67 · · Score: 4, Insightful

    by adding AMD systems across the board, Dell would double overnight the number of motherboards that they have to support and troubleshoot. Even if AMD sales were only a small part of their overall revenue.

    Would there be enough new revenue from selling AMD systems to justify that? It has to be NEW revenue, because if it's just replacing one revenue stream with another at a greater cost, why would you bother?

    Dell probably does not see enough additional revenue from AMD sales to justify the increased support costs.

  29. Re:Maybe, but not for that reason by Jon+Peterson · · Score: 4, Insightful

    Unfortunately not. Ramping up CPU production takes a very long time, because you have to build big, complex, factories. Ramping up demand can happen extremely quickly, because it just requires someone selecting the 'amd' dropdown rather than the 'intel' one on the Dell site.

    That is (one reason why) Dell isn't going AMD.

    For those who hadn't noticed (all geeks, apparently) Dell is not a computer company. It is a manufacturing company. It has made great, innovative strides in extremely efficient manufacturing. They just happen to be doing it with computers. The choice of CPU in the box means as much to Dell as the choice of compressor in a Siemens fridge means to Siemens. And the CPU means as much to most consumers as the compressor in their fridge.

    Sure, some compressors are probably more efficient, reliable, quiet, whatever. But if you have n million invested in robots that can install one brand of compressor and not another, are you going to switch? What if you have a huge set of automated hardware tests all of them based on Intel motherboards - are you going to switch? What if you have hundreds of call center scripts based around diagnosing known Intel related problems?

    The actual capability of the processor is NOT RELEVANT. Dell don't sell PCs because they make the best ones. They sell them because they make them very cheap, and can deliver huge orders on time, even when those orders are semi-custom. Dell does not achieve this impressive feat by switching components every time one of them becomes slightly better than another. If you want that kind of thing, there are many PC makers who will do it.

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  30. Re:Better performance depends on your metric by WhiteWolf666 · · Score: 4, Insightful

    Athlons are rock solid.

    Opterons are rock solid.

    Both are GREAT chips.

    Via makes some GREAT motherboard chipsets.

    Via makes some mediocre motherboard chipsets.

    SiS makes some pretty good motherboard chipsets.

    SiS makes some crap motherboard chipsets.

    Not-well-known manufactures take some of the crappier parts, and put them on even crappier boards. Then you get instability.

    With an Intel Chip, and an Intel Board, you know everything is going to work.

    With an AMD Chip, you have to select a motherboard. You've got to do a little bit of research to make sure you aren't buying crap.

    Don't get me wrong, I'm a huge AMD fan. I've got ~7 systems in my home, and several at work, and they are ALL AMD systems. But I've been burned in the past by poor quality motherboards, so I know that they do exist.

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  31. I have a bigger problem with... by ikewillis · · Score: 4, Insightful

    ...the fact that Slashdot has run about 30 "Dell might maybe possibly be thinking about considering using AMD processors" only to run a "Never mind Dell denies it" stories. How about holding off on running another pair of these stories until Dell officially confirms they're using AMD processors?