AMD Plays The Channel Against Dell
Posted on Nov 3, 2005 at 12:06 PM by John Foley
AMD is keeping the pressure on Dell to eventually use its processors in Dell computers. The chipmaker last week launched the AMD Commercial Channel Access Program, intended to expand its partnerships with system integrators, VARs, and distributors. To meet their ambitious growth plans, AMD officials realize they need to broaden the company's distribution footprint. Dell remains a holdout, so AMD wants Dell to feel the pain of its continuing success.
AMD officials didn't couch the Oct. 24 announcement in those terms. But when I asked Kevin Knox, AMD's VP of worldwide commercial business about it, he admitted that one way to turn up the heat on Dell is to keep growing AMD's business at Dell's expense. "Absolutely," Knox said over dinner in New York to discuss AMD's channel program.
In June, AMD filed suit against Intel, charging that its competitor has used illegal practices to coerce 38 companies, including Dell, into exclusive business relationships. Intel responded in court in September.
In a follow-up E-mail, Knox said Dell's strategy of using Intel chips exclusively has served as a "rallying point" in the AMD channel. "We recognize that many of our channel partners are competing with Dell and, in doing so, are also competing with Intel indirectly," he says. Knox claims some companies have switched from Intel-based Dell computers "specifically because they are not offering AMD-based solutions." However, he didn't name any new customers that have actually made the jump from Dell.
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