Businesses Won't Pay Premium For Intel-Based Servers, Survey Says - 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.

Hardware & Infrastructure
12:15 AM

Businesses Won't Pay Premium For Intel-Based Servers, Survey Says

Two-thirds won't pay a premium for an Intel server, while a quarter said they would pay up to a 10% premium and one in 10 said they would pay more than a 10% premium.

Business-technology managers who buy servers are not willing to pay a premium for Intel-based systems, according to a recent survey of more than 300 customers of managed hosting provider Rackspace Managed Hosting.

In a survey completed in the first week of November, 65% of respondents said they would not pay a premium for an Intel server, while 25% said they would pay up to a 10% premium, and 10% said they would pay more than a 10% premium for an Intel-based server as opposed to a system using processors by rival Advanced Micro Devices Inc.

"It did surprise us a little that customers aren't willing to pay much more for the Intel brand," says Paul Froutan, VP of product engineering for Rackspace. "Our survey shows that AMD is getting much closer to Intel than it used to be in terms of perception of performance."

The survey also found that 36% of respondents felt AMD processors provide better speed for their applications, compared with 31% who believe Intel processor provide better speed. AMD processors have better power efficiency according to 34% of respondents, while 25% favored Intel processors.

More than 25% of respondents said they felt pressure to use Intel-based systems, while only 3% felt pressure to use AMD-based systems, and 72% felt no pressure to use either.

According to 39% of respondents, marketing is the main reason that Intel has a dominate share of the processor market, while 25% said it was Intel's partnerships, and 15% said it was technology and innovation.

When asked which of the two companies they believe will win the server processor battle in the long run, 41% said Intel, 11% said AMD, and 48% were unsure.

Froutan said there was a 50/50 split among current users of Intel and AMD-based servers who responded to the survey.

"We have so far pursued a dual processor strategy, but this will give us insight on the value of processor brands to our customers," he said. "It appears to us that AMD and Intel are at par in the minds of our customers, and given that, AMD's price advantage may win out."

Rackspace runs five hosted data-center operations in the United States and England. The company has about 17,000 servers installed in the centers and has annual revenue of about $160 million.

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