AM D Old #1

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AMD going to zoom on this good news.

Dell confirms it may use AMD processor in server
By Jack Robertson, EBN
Sep 30, 2002 (1:03 PM)
URL: http://www.ebnews.com/story/OEG20020930S0056

Dell Computer Corp. on Monday confirmed that it is considering selecting the Advanced Micro Devices Opteron Hammer MPUfor an upcoming server product. A decision is due by the end of the year, a Dell spokesman said.

Dell has always used Intel processors for its PC, workstation and server lines, to the exclusion of AMD. Adding the Opteron chip would be a major breakthrough for AMD, which has long sought to crack the solid Intel phalanx at Dell.

The Dell spokesman said the computer firm is also looking at Intel's Itanium enterprise server processor, but has made no decision on designing that chip into any new product.

EBN earlier reported comments by Jonathan Joseph, chip analyst for Salomon Smith Barney, San Francisco, that AMD was thinking about using an AMD processor for the first time. At the time, a Dell spokesman declined to comment on the report. Joseph said Dell may be using AMD as leverage in its pricing negotiations with Intel.

The first indication from Dell that the AMD Opteron MPU was being considered appeared in the New York Times last Sunday, in a story on Intel's Itanium processor. That story contained comments by Randy Groves, vice president for the enterprise systems group, that "This is the first time AMD has had a value proposition that is more than just price. That's something we have to take seriously." The Dell spokesman confirmed the quote today.