Advanced Micro Devices Inc (AMD)

[pgerassi]

Think again fantasy boy, of course HP has to say such things given that they want to keep their old PA-RISC customers. They don't want them to go AMD64 to Opterons and Xeons because they would lose quite a bit of their high margin service and hardware business.

Every time I hear of a large HPC bid, the customers said, Intel gave away (donated) their IPF CPUs for it. So they aren't getting your claimed 40% CPU revenue for HPC server contracts, Intel gets 0%. If they didn't, the vendors wouldn't sell much IPF into HPC because Opetrons and Xeon give much higher bang for the buck at street and list prices. And Intel needs the volume and mindshare or else they would sell even less IPF into the commercial world. That is where they get the bulk of their IPF CPU revenue. They also can take 38% of the full list price off of their taxes for the CPUs donated. That is likely higher than their processing costs. The implied revenue coming from their cash cow AMD64 business.

In the commercial world, Intel gets less than 10% (HP gets a hefty margin on top of that even with 60% discounts) for CPU revenue and when bundled software is included, far less than that. HP lives for the high margin hardware (chipsets, glue, chassis, disk, memory, comm, etc), high margin software and pricy integration and service support. Its there to make HP money, not to pay a lot of it to Intel.

Don't like what that does to your rosy vision of the IPF market, TOUGH! That is the real world, not some ivory tower view of some what should be fantasy land.