Brief: Dell Will Finally Use AMD Chips - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance
09:55 AM

Brief: Dell Will Finally Use AMD Chips

The decision seemed increasingly inevitable, as AMD gained server market share.

It was almost anticlimactic when Dell slipped a mention into its quarterly financial statement that it would sell servers based on chips from Advanced Micro Devices, breaking from its longstanding strategy of only selling computers with Intel chips. But the disappointing first-quarter results speak volumes about why Dell made the move.

Dell will sell servers based on AMD's dual-core Opteron processor before year's end. No word on AMD-based PCs and laptops. All the other big server manufacturers--Hewlett-Packard, IBM, and Sun Microsystems--offer AMD-based systems. AMD's share of the x86 processor market has grown past 20%, and 25% isn't unreasonable this year.

The move has been anticipated since last fall, when Dell started selling standalone AMD processors on its Web site. This month, Dell joined the AMD-led Green Grid Consortium to improve energy efficiency in the data center.

Dell's use of AMD processors seemed inevitable as AMD gained market share the past two years in the server market. And Dell has struggled to meet earnings expectations, including last week's announcement that quarterly revenue grew 6% from a year ago to $14.2 billion, but net income dropped 18% to $762 million. CEO Kevin Rollins said competition was "more intense than we had planned for or understood." Having AMD chips won't end that. But it will put Dell on the same field as its competitors.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Register for InformationWeek Newsletters
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll