Feeds

AMD 'penetrates' Dell - again

Fading rumour fire restoked by analyst

  • alert
  • submit to reddit

Combat fraud and increase customer satisfaction

Dell is once again being touted as a potential supplier of AMD CPUs, this time in a research note provided by US investment advisor Susquehanna Financial Group.

"Based on our channel checks, AMD has finally been able to penetrate Dell with its Opteron processors targeting the server market," SFG's latest Semiconductor Devices report claims.

"While Dell has always been an Intel exclusive OEM, our checks indicate that Dell is currently designing two dual-processor servers based on AMD's Opteron processors. This would be the first time that AMD has been able to get in any of Dell's systems and could open the door for AMD to expand its processor line-up into future Dell desktop PCs and notebooks, in our view."

Of course it could, but it seems unlikely, no matter how much the AMD fanboys might wish it. There have been 'Dell is about to use AMD chips' rumours aplenty throughout the past five years and beyond, none of which have come to fruition.

As the one major PC supplier that has yet to offer AMD-based product, Dell finds itself courted by both AMD and Intel: the latter to ensure its exclusivity is maintained, the former to really put one over on its arch-rival. This naturally suits Dell very well, since it keeps it in the driving seat of each relationship. Where it will steer them both, we wouldn't dare to guess.

Equally, we've no doubt that Dell is designing an Opteron-based system. Heck, with so many off-the-shelf components available, it wouldn't exactly be hard to do. But to view such experimentation as a sign of a shift to AMD - particularly without any corresponding evidence of a big swing in the market in favour of Opteron-based kit - is to read too much into the signs.

It's a bit like saying Apple is going shift the Mac to x86, just because its buying Windows PCs to test iTunes on.

SFG also notes that Sun is readying further Opteron-based servers for introduction in Q4. "Additionally, Sun is slated to port its 64-bit Unix software onto AMD's Opteron architecture, which should elevate AMD in the enterprise market against Intel, in our view," SFG says. "Sun's 64-bit Unix software is widely used in the worldwide enterprise server market, which is forecast to grow more than three per cent compounded annually from $50bn in 2003 to $58.5bn in 2008.

"We believe that the ability for AMD to run Sun's software could open up many more opportunities for the company in the coming quarters given the size of the enterprise server market and AMD's limited market share in the enterprise space."

Maybe then Dell will take a more serious look at Opteron, but while AMD's market share remains "limited", as SFG puts it, we're doubtful that the benefits for Dell would outweigh the loss of its current bargaining position with Intel. ®

Related stories

Dell CEO confirms line of Opteron waiters
AMD bags Chinese giant
HP to upgrade AMD to business class
Dell ups Q1 forecast on overseas boom
Analysts cheer AMD, Dell and Microsoft as x86-64-bit winners
Sun offers a hand to confused HP-UX customers
Sun bets future on UltraSparc IV and Opteron boxes
Thousands of Sun Opteron boxes spotted in the wild
Sun and IBM to lead 64-bit boom - analyst

Combat fraud and increase customer satisfaction

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
AMD's 'Seattle' 64-bit ARM server chips now sampling, set to launch in late 2014
But they won't appear in SeaMicro Fabric Compute Systems anytime soon
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.