Intel and The Dell-AMD Deal | Business Strategy Case Studies

Details

Case Code : CLBS075
Publication date : 2009
Subject : Business Strategy
Industry : Computers, IT & ITeS
Length : 03 Pages
Price : Rs. 100

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Key words:

intel, dell, AMD, Opteron, Advanced Microdevices, Intel corporation, four way server, Symmetric Multiprocessing, Samsung, Toshiba, Texas Instruments, technological development, rebranding strategy, Woodcrest

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

Abstract:

This business update discusses about dell opting for AMD Opteron ending its long-standing Intel only strategy. dell had taken this move due to intel's earnings shortfall leading to a stagnant growth in the PC market. Dell also faced intense competition from Samsung, Toshiba and texas instruments.

Introduction

Intel takes a hit as Dell opts to use AMD's 'Opteron' in multiprocessor servers, ending its Intel-only strategy.

On May 20, 2006, US-based Dell Computers (Dell), the world's largest PC manufacturer, announced its plans to enter into a deal with Advanced Micro Devices (AMD) under which it would use AMD's Opteron microprocessors in the server segment. The announcement left analysts surprised as Dell had always used microprocessors from Intel Corporation (Intel). Commenting on Dell's announcement, AMD's Senior Vice President, Marty Seyer, said, "We welcome Dell, and Dell customers, to the world of AMD64."

He added, "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."...

Intel and The Dell-AMD Deal*