AMD in Dell - does it matter?

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WGruener

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Feb 1, 2006
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Finally. No more speculations and more fuzzy marketing phrases. It's official, Dell is using Opteron processors for it's servers. For now, it's a very limited exposure for AMD, since Dell will only be building Opterons into high-end servers, not into the mass-market, mainstream systems.

But does that really matter? What do you think? Will Dell really profit from that? Will prices of systems in which AMD and Intel compete really go down, as AMD claims? And would you expect the pace of innovation in the space to increase with the largest systems builder now using both firms in its products?

We are looking forward to your opinions on how this deal will impact the industry and the processor landscape.
 
If dell wwas smart they'd adopt amd for all systems immediately...maybe the success left with Michael Dell. The stock always went up...now if they don't adopt amd, it will be vice versa.
 
Should AMD have the best part for gaming systems, I think in the future, there's a chance that they may offer AMD boxes that are targeted at gaming.
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What's that dude smoking? XPS's with Athlon 64's, or opty's, I'd almost start recommending them, almost.
 
Just like anything in business, it will just take some time. After dealing with the chips, they'll start expanding into the other lines. But the main thing is with Dell's broad appeal, it will only increase the market share for AMD in the server arena and push them further into the standard user's minds...... Before you knew all you did, who did you ask for knowledge on Proccessors? The local IT guy, and when he can finally recommend a Dell that has AMD, hes gunna do it. Just going to take time thats all. Just put in the effort and bam they finally got Dell, so I'm not worried about whats going to happen to AMD, its only going to go up....
 
I aint you know what read this
Master-of-the-obvious.jpg
 
Dell does not need to use AMD chips in their desktops. Those who buy servers are typically much more computer savvy than those who are buying desktops. Most people buying Dell desktops and laptops don't know Intel from AMD, even they have perhaps at least heard of Intel. As long as Dell keeps pumping out those $400-700 machines for the masses, it won't matter whose chip is in there. I would venture to say as long as Dell keeps those lines Intel only, they will continue to benefit from very good pricing from Intel. From a business standpoint, I don't see that they need AMD in those lines, and why jeopardize what appears to be a very good association with Intel. Dell doesn't care about what the small percentage of computer enthusiasts want, they care about making money. Besides, most computer enthusiasts wouldn't buy a Dell even with an AMD processor. It's all about money.
 
Just like anything in business, it will just take some time. After dealing with the chips, they'll start expanding into the other lines. But the main thing is with Dell's broad appeal, it will only increase the market share for AMD in the server arena and push them further into the standard user's minds...... Before you knew all you did, who did you ask for knowledge on Proccessors? The local IT guy, and when he can finally recommend a Dell that has AMD, hes gunna do it. Just going to take time thats all. Just put in the effort and bam they finally got Dell, so I'm not worried about whats going to happen to AMD, its only going to go up....
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Dell is using AMD in desktops. Alienware specializes in AMD systems for gaming. I'd buy Alienware before Optiplex or XPS.
 
You are forgetting that Alienware is not the household name that dell is. How many uninformed people come up to you and say "I got this Alienware flyer and am thinking of buying a computer, what should I get?". I get that all the time with Dell. Hell, even the bartender at the local Bar pulled that one on me.

If AMD gets that level of penetration into Dell (they probably won't, they are focusing their efforts into the server space where they are killing Intel, and Dell's current deals with Intel are too sweet), then it will definitely help their CPU Sales.

It's like getting a product you make in your garage sold at Wal-Mart. It can't help but boost sales.
 
I think that everyone is underestimating the potential impact this move will have for both companies.

First consider Dell's enterprise dominance. Dell has the largest piece of enterprise market share. Speaking from experience, enterprise level customers generally don't give a crap about processor name brand. They want the best pricing their OEM's can provide. HUGE companies are exclusive to Dell for all their PC needs. AMD just got a (potentially) enourmous foothold in enterprise customers. So even if this deal doesn't pan out like everyone thinks, at the very least AMD will Opterons in <some> servers that they didn't have before.

Second. There are plenty of IT geeks (though a small minority) out there who just LOVE AMD. Many of them are decision makers for these "enterprise" customers. We've already established that Dell has the majority of market share. If said geeks have a choice between Intel and AMD- they'll choose AMD. This is beneficial for both companies. AMD ships more Opterons (which are inherently high margin) and Dell sees growth. Even if Dell ships 5% of its servers with Opterons in 2007, it's going to a windfall for AMD. 5% is a LOT when you're dealing with a monster like Dell.

Now with all that said, I don't really have any clue as to how big all this will be in reality. I do know for a fact that eventually at least 25% of all Dell systems shipped will have AMD processors. Just when that will happen is anyone's guess right now.

So my answer is yes, AMD in Dell it does matter. For both companies.
 
I dont know what the heck Dell is thinking when a whole new line of processor is coming out in few months from Intel for Desktop, laptops and Servers. Unless Dells wants to improve their sales in short period of time with AMD by claming fastest PC on the market with fastest CPU on the market, and 6 months later ditch AMD for Intel. Then i would understand.

But if AMD won’t come out with anything new after Conroe line of CPU comes to market, then AMD will be dead in the water and Dell will be pissed, because they won’t be selling fastest PC's anymore, and sales will go down. Instead some one else will use Intel and claim fastest servers and Desktops, thus boosting their sales, HP for example.

In a way its a bad move for Dell unless they are out to use AMD and then toss them a side like a week old used socks and go with Intel instead.

Just doesnt make sence to make such drastic change now.
 
Piddy, I've been around there just hasn't been much worth discussing on here lately and I've been pretty busy with work.

As for this topic, please people don't turn this into a Conroe vs. AMD discussion, because Conroe has very little to do with this issue at all for two reasons:

1)Dell is going to be putting AMD's in their high end servers in late 2006 after Conroe is released, and will initially be putting them in high-end 4 and 8 way plus servers. Intel's next server chip will at best be about even with opterons in that segment, and they will likely be more expensive given Intel's enterprise pricing models in the past.

2)Even if it were an issue, do you think that Dell would sign an agreement like this with AMD after all these years if they didn't have at least some indication that AMD processor's will be able compete either pricewise or performance wise.

Remember this is the Enterprise market, which is a whole different world than the home desktop/enthusiast market.
 
A more balanced market share between Intel and AMD can only be good for the consumer/enterprise. Even with recent gains made by AMD almost ALL businesses would kill for Intel's market share. I imagine that when a company temporarily moves ahead in technology the other company will try to negate that advantage as much as possible with price.

Opterons have been grabbing large chunks of the server market and Dell couldn't stand idly by any longer watching sales go to other companies like HP. Servers are where the large margin, big bucks is made. Hopefully there will be a trickle down effect with AMD getting into Dell desktops.
 
Words to big for you?
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No just kidding with you.

Piddy, I've been around there just hasn't been much worth discussing on here lately and I've been pretty busy with work.

As for this topic, please people don't turn this into a Conroe vs. AMD discussion, because Conroe has very little to do with this issue at all for two reasons:

1)Dell is going to be putting AMD's in their high end servers in late 2006 after Conroe is released, and will initially be putting them in high-end 4 and 8 way plus servers. Intel's next server chip will at best be about even with opterons in that segment, and they will likely be more expensive given Intel's enterprise pricing models in the past.

2)Even if it were an issue, do you think that Dell would sign an agreement like this with AMD after all these years if they didn't have at least some indication that AMD processor's will be able compete either pricewise or performance wise.

Remember this is the Enterprise market, which is a whole different world than the home desktop/enthusiast market.
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I know hergie it's just that alot of people are M.I.A. cause of this whole am2/conroe war i wonder when it is going to be over i pray for peace on these forumz.
 
Well said, I was thinking the same thing. Did he not read the article, Stop thinking small time son. This ain't your home desktop computer. AMD leads in 4p to 8p servers, as the articles states and even conroe won't change that.

Why limit yourself to only one vendor when u can have both. Makes alot more sense to me then just sticking to intel. Product diversity is key. The more products you have to offer your customers the better it is for them, hence increasing your chance for profit.

Start thinking out of the box, and not the intel box u seem to be sitting in.

This is good for everyone!
 
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