Dell's Alienware Acquisition Start Of AMD Relationship: Analyst - 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.


Dell's Alienware Acquisition Start Of AMD Relationship: Analyst

The deal gives Dell access to a highly skilled design team that's familiar with AMD chips.

SAN FRANCISCO — A prominent semiconductor industry analyst Wednesday (March 22) characterized Dell Inc.'s proposed acquisition of high-end PC supplier Alienware Corp. as a way for the computer giant to "back its way" into a relationship with Advanced Micro Devices Inc.

For months, rumors have persisted that Dell is seeking to develop servers based on AMD microprocessors, a move that would strike a blow to Intel Corp., which has been Dell's only provider of processors. But to date, Dell has yet to offer any product based on AMD processors.

Miami-based Alienware offers a wide range of systems featuring both Intel and AMD processors.

The deal, according to Doug Freedman, senior analyst at American Technology Research Inc., gives Dell access to a highly skilled design team — one that is familiar with AMD chips.

"I think this is the start of a relationship [between Dell and AMD]," Freedman said.

By structuring the deal as to make Alienware a wholly owned subsidiary, Freedman said, Dell is also protecting its arrangement with Intel. While Dell has said in the past that it does not have exclusive agreements with Intel, Freedman said, not a great deal is known about the details of the companies' relationship.

"I've always felt like if Dell really wanted to have a relationship with AMD, it would," Freedman said, adding that one obstacle to such a relationship has been that AMD does not have the incremental capacity to handle all of Dell's business.

Freedman has been saying since at least January that American Technology Research expected Dell to announce a relationship with AMD as early as this month.

To put things in perspective, Freedman said that he and his colleagues estimate that Alienware currently ships about 85,000 systems per year — less than one half of one percent of the overall PC market. Alienware's systems, he said, are basically for people who used to build systems of their own but now can afford to buy them.

"It's very similar to the way that Dell got started," Freedman said of Alienware's business model.

EE Times' David Roman contributed to this report.

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
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Becoming a Self-Taught Cybersecurity Pro
Jessica Davis, Senior Editor, Enterprise Apps,  6/9/2021
Ancestry's DevOps Strategy to Control Its CI/CD Pipeline
Joao-Pierre S. Ruth, Senior Writer,  6/4/2021
IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
Register for InformationWeek Newsletters
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
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