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Dell shuns Intel, opts for Opteron in high-end servers


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Dell shuns Intel, opts for Opteron
Friday, May 19 2006
by Maxim Kelly

In the midst of its poor quarterly results Dell announced that it is to use AMD's Opteron chips in some of its high-end servers by the end of year.

Dell buried news of the end of its exclusive relationship with Intel in the small print of its quarterly financial results and announced it will introduce Opteron processors from Intel-rival AMD into its high-end servers by the end of the year.

Dell's decision to abandon its long-standing all-Intel policy comes amid less-than-stellar profits for its first quarter. It reported quarterly net income of USD762 million -- falling 18 percent from its USD934 million profit for the same quarter last year.

"The market intensified a bit more than we understood or maybe even acknowledged earlier in the year," Kevin Rollins, CEO of Dell said. "Some of our competitors were a little stronger than we had thought," he told reporters at a conference call.

Dell's quarterly revenue rose just under 6 percent to USD14.2 billion, from USD13.4 billion in the year-ago quarter. Last week Dell warned it would miss its original market forecast of USD0.36 to USD0.38 per share based on revenue of between of USD14.2 billion and USD14.6 billion.

Earnings per share currently stand at USD0.33 as Dell claimed to have made profit from increasing server sales, its storage business and general global market activity. Compared to this quarter last year, the company's sales outside the US grew 12 percent, generating 44 percent of Dell's overall revenues. The Texas-based company also pledged to cut USD3 billion in costs this year.

"We are confident in our ability to continue growing globally, particularly when we remember that 95 percent of the world's population lives outside the US and we have less share of market outside the US than some of our competitors," Rollins said. "The growth associated with these initiatives will not be accomplished in just one or two quarters. We are positioning the company for the next three to five years and beyond."

However the computer industry is buzzing with talk of Dell's new position vis a vis Intel. Speculation that AMD has created a "love triangle" with Intel and Dell is good news for the Opteron manufacturer which has been chipping away at Intel's global dominance for the past year or so.

AMD launched the Opteron processor in 2003 but has until now failed to penetrate the server market.

AMD commercial vice president Marty Seyer issued a smug statement after Dell's results: "We welcome Dell, and Dell customers, to the world of AMD64."
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One of the TRIBE servers running this board is a dual opteron and they are far superior to anything I have used by Intel. Fast, cool, wide memory bandwidth, true 64 bit computing.


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Isosceles_CAT said:
This is huge for AMD... Whats the source on this article btw?

an Irish tech news site, however it was also on CNN this morning
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