AMD in 2005: Coming Out of Intel's Shadow?

            



<<Previous Page

New Optimism Contd...

The leading Linux software maker, Red Hat offered Linux for Opteron. IBM offered a compatible version of its heavy-duty DB2 database software. Some IBM customers were already using the technology, in beta [test] form, and they were planning the chip for deployment by early 2003.

A handful of specialized server makers, like Angstrom Microsystems had signed on to use Opteron. AMD had also sold Opteron-based evaluation units to customers such as the Hollywood special effects house Pixar Animation Studios (producers of the ''Toy Story'', ?#8364;œFinding Nemo?#8364;? among others) that could use Opteron-based systems to produce its computer-generated movies faster and cheaper. Meanwhile, Sun, which was trying to open up its Solaris products to other architectures, was looking at incorporating Opterons in some of its blade servers . Despite the possibility of affecting sales of its UltraSPARC processors.

Business Strategy Case Studies | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

or
Business Strategy Case Studies | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

or
PayPal (11 USD)

Sun started endorsing Opteron by 2004. HP, which had developed the core of the Itanium architecture along with Intel, seemed to be placing all its bets on Itanium 2. But for certain data intensive operations, HP's tests showed that Opteron performed better than Itanium II. Although HP insisted that it would remain committed to Itanium II, it was looking seriously at Opteron. In November 2004, HP announced a range of servers featuring Opteron.

Even Dell, the strongest player in the PC market and traditionally a staunch Intel user, had plans to tap this market. Randy Groves, Dell's chief technology officer explained ,
?#8364;œWhat makes this different from past AMD discussions is that until now AMD's value proposition has been Intel compatibility at a lower cost. Now it's not a pricing discussion. This is something Intel doesn't have."

But Dell had a high degree of loyalty to Intel, largely due to the support it received from Intel. Intel paid Dell for marketing its products, when Dell carried the logo of Intel. Analysts felt that Dell would wait and see if AMD could make Opteron consistently in large volumes.

In 2003, IBM announced it would be sharing technology and manufacturing know-how with AMD fueling speculation that Opteron and Athlon 64 would be manufactured in IBM's plants. IBM was also critical of Intel's scalability claims and seemed to be taking a liking to the combination of Opteron and Linux.

Microsoft ultimately expected to support the Opteron in a manner similar to how it had first supported Itanium, with an interim release product specific to that CPU. AMD expected Opteron would have 32-bit support in Windows Server 2003, with 64-bit support following sometime later. SuSE, a company that made Linux based products in Nuremberg, Germany and Red Hat, another Linux company, reported that they would provide Linux software written for Opteron.

The bulk of AMD's microprocessor product sales came from the company's seventh-generation x86 Microsoft Windows compatible AMD Athlon and AMD Duron microprocessors. The company designed its AMD Athlon and AMD Duron microprocessors around RISC (reduced instruction set computer architecture). RISC allowed microprocessors to perform fewer types of computer instructions and operate at a higher speed. AMD's Athlon and Duron microprocessors were compatible with operating system software such as Windows XP, Windows 2000, Windows 98 and Windows predecessor operating systems, along with Linux and UNIX.

Next Page>>;

Advertisement...

top