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Page 2 of 2 Continued... So why is the server market the key to this feud? Simple; that’s where the profits lie. Today, in the desktop business, the margins aren’t high enough. While manufacturers aren’t selling them at a loss per say, they aren’t making much of a profit either. That’s the reason companies run scared when anything affects their server market prospects. AMD confirmed that currently the entire server market approximately consists of 12 million servers, and they can easily service them all. Their boast not withstanding, it’s definitely possible that they can service a significant chunk of it, provided, the vendors want it. They do, at least according to AMD. AMD states that this is really the fundamental shift this time. This time, the vendors actually believe that they might get away by standing up and facing Intel. They will call AMD and sure enough, will have their processor supplies ready to ship. Of course, this won’t be as easy as that. They would have client commitments for certain platforms, and they will have to meet them, but apart from that, it would be a free life. Related Articles: - Subscribe to CoolTechZone.com's RSS Feed The only question on my mind is, if they break away from Intel and go join AMD, then AMD can hold them against a ransom (to an extent) similar to Intel. If AMD starts acting funny, there is no way they can go back to Intel without much penalty (so to speak) and a loss of face. The chances that AMD will do something this degrading are obviously next to nothing, but it’s still an interesting idea to keep in mind. Everything looks pleasant for AMD for the time being, but what happens when Intel announces a better microprocessor than AMD’s Opteron? How will the cookie crumble then? It’s a waiting game… |
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