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."

Comments

SFW

[gowen]

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?

Re:SFW

[Anonymous Coward]

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.

Re:SFW

[SatanicPuppy]

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.

Re:SFW

[gowen]

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.

Re:SFW

[ePhil_One]

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.

Dude!

[TimeTrav]

Dude! Youre not getting a dualcore!

FP

Makes perfect business sense

[Anonymous Coward]

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

Re:Makes perfect business sense

[Anonymous Coward]

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.

Re:Makes perfect business sense

[Tenebrious1]

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.

Re:Makes perfect business sense

[TopShelf]

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...

Because

[Anonymous Custard]

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.

Re:from the duh dept.

[harrkev]

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.

It would not be good for Dell's bottom line

[Theovon]

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.

Not to flame

[Kipsaysso]

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.

Dell's customers not asking?

[mindaktiviti]

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.

Does Dell really need AMD

[Anonymous Coward]

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.

Dell is afraid...

[xeon4life]

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?"

Don't underestimate a company as big as Dell

[the_mutha]

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 :)

In Other News

[CleverNickedName]

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.

To answer your question...

[stlhawkeye]

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.

and their tech support...

[LegendOfLink]

...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!

Another reason to use AMD

[un1xl0ser]

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.