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AMD Withdraws From High-Density Server Business

Posted by samzenpus on from the stop-the-bleeding dept.

An anonymous reader sends word that AMD has pulled out of the market for high-density servers. "AMD has pulled out of the market for high-density servers, reversing a strategy it embarked on three years ago with its acquisition of SeaMicro. AMD delivered the news Thursday as it announced financial results for the quarter. Its revenue slumped 26 percent from this time last year to $1.03 billion, and its net loss increased to $180 million, the company said. AMD paid $334 million to buy SeaMicro, which developed a new type of high-density server aimed at large-scale cloud and Internet service providers."

1 of 133 comments (clear)

  1. Late to the market....need to be special by Anonymous Coward · · Score: 5, Interesting

    Looks like they're focusing on ARM chips:

    "AMD still sees growth potential in the server market, but not from selling complete systems. It's returned its focus to x86 chips and to the development of its first ARM server processor, code-named Seattle."

    8 core 64 bit ARM chips with GPU built in are fairly common and 10 core chips already announced (Mediatek), with 16-48 core vaguely hinted at for servers by other vendors. So if AMD plan on entering the ARM processor market they'd better get something special out and fast, and be prepared to stick at it and upgrade it and take the initial losses. Because they're unlikely to win companies over first time till they're confident AMD are in it for the long run and won't leave them hanging without a supplier.

    On the other hand they could focus on x86 chips where Intel is already deep discounting at the low end, and likely will have to do that all the way up the range to compete.

    AMD face a tough time either way.