Saturday, 30 August 2008

(Column) - The Intel vs. AMD lawsuit has made headlines multiple times, however, there are more forces at work here than we realize.

AMD beat Intel in retail sales consistently towards the end of 2005. This was long due, but because of Opteron, AMD will continue to experience fruitful years ahead.

The Athlon64 processors have been around for years. For years, AMD has had a better product than Intel. The consumers know it, the vendors know it, AMD knows it and even Intel knows it, but the sales (outside the enthusiast market) aren’t happening. Why?

There is definitely the baggage that AMD carries from its K6 days which makes people jittery about AMD processors due to thermal issues. Since K6, AMD has fixed most of the heat issues. The X2s today run up to 20-25 degrees (Celsius) cooler than a comparable Pentium D. In a few short surveys we have conducted, the fear of heat issues is declining as users continue to realize the chip’s potential. That’s what has ensured that retail sales continue to incline and surpass Intel. Why is the same not working on an OEM or vendor level?

It’s quite simple. The worldwide server market today consists of 12-15 million pieces, though it’s growing rapidly. Since all vendors are competing for the space, this means you need to have the product you want in stock at all times. What Intel seems to be doing (according to AMD vs. Intel lawsuit) is pressuring partners to decline their partnerships with AMD, or else they might not receive the necessary products on time. Since nobody wants a business loss, partners have no choice but to stay away from AMD.

This was the case up until now. With the Opteron range, AMD has finally offered OEMs a genuinely viable alternate solution. Next time Intel tells them that it would be unable to supply processors on time, partners can turn to AMD. Sure this will be a reluctant process, but it’s inevitable if the company truly cares about delivering a better solution to its customers.



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