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Dell to Use AMD Chips in its Servers
garfangle writes "Dell has decided to include AMD's Opteron processor in its product line of servers. This is the first time Dell has used AMD chips within its own Dell branded products (excluding the recently acquired Alienware computers)." From the News.com article: "The deal appears to be confined to servers at this point. The news came along with the release of Dell's earnings results, which were in line with the disappointing warning the company provided last week. Revenue was $14.2 billion, up 6 percent from last year, but net income slid 18 percent to $762 million. Several times during the last few years, Dell CEO Kevin Rollins has hinted that the company was right around the corner from introducing products based on AMD's chips."
I really think the reason they're finally using AMD chips is that AMD will finally have the manufacturing capacity to supply Dell. Fab36 is delivering revenue now, and will ramp more as the year goes by. Between Fab36 and their relationship with Chartered Semi, they can supply Dell with the chips they need. And since its most likely they'll be 4S (8 core) servers, for ever server dell sells, they'll need 4 chips from AMD.
The Doormat
If you're not outraged, then you're not paying attention.
They are initiating outsourcing of some production to Chartred.
I assume they planned in advance for this, since if the Dell deal didn't go through, they could cancel the Cartred deal without having tons of spare capacity on thier hands.
With 20/20 hindsight, looking at AMD's Chartred plans, it should have been pretty obvious that AMD had a big customer lined up. Too bad I didn't have that foresight, otherwise I could have made some good cash on AMD stock.
When we compared the power draw for opterons versus itaniums at the time when such a battle was being contested, the results were pretty bleak for Intel and anyone associated with them. We setup a subsidary company to build custom servers for our project and we saved pry 20,000 dollars in electricity costs over the life of the project. 3 years and 2000 servers. Why is Intel so stupid when it comes to power consumption for server processors? The air conditioning is what gets you when you have 2000 200-300 watt proccessors that is a helluva lot of energy to cool.
An Education is the Font of All Liberty
AMD Issues Statement on Dell Decision to Offer Customers a
2006-05-18 16:36 (New York)
Choice
SUNNYVALE, Calif.--(BUSINESS WIRE)--May 18, 2006
AMD (NYSE:AMD) released the following statement today
regarding the announcement Dell Inc. made in its quarterly earnings
statement that it intends to offer AMD Opteron(TM) Dual Core
processor-based servers.
"We welcome Dell, and Dell customers, to the world of AMD64," said
Marty Seyer, AMD senior vice president, Commercial Business. "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. We look forward to working closely with Dell
and bringing the benefits of AMD's leading performance-per-watt
solutions to Dell's customers.