Replies to post #20526 on Advanced Micro Devices Inc (AMD)

[Elmer Phud]

kpf -

You know, they are giving not only CPUs away but whole Servers and Software as well to seed the market with Itanium.

This is simply not true. Intel isn't giving away anything. They are allowing an evaluation but if the customer declines they have to return Intel's property. Do you think the auto dealer is giving you the car if you just go for a test drive?

[Golfbum]

kpf: re free processors

http://www.businesslaws.com/els18.htm

gb

[chr p]

kpf,
"The point is not yet to make big inroads into hostile territory but to get your pieces out into a position before you can start an attack."

Exactly and here I have to place my disclaimer - "Scooter is inpredictable but always late for the party":) and consequently the rest is only my understanding.

So i agree the revenues for next year from the SUN deal are pretty irrelevant. Even it AMD gives away hundreds of thousand serverchips for symbolic prices it is a successful move for AMD

I cant't make a good guess on AMD's revenue but that's the only chance for Scooter to get some recognition in market sectors where performance and price/performance is considered. Not only servers, he can also revive his workstations. The benefit with Opteron is that he gets free reliability from the start and then he can later offer full 64 bit upgrade. The other significant benefit (for Scooter of course) is that if Opteron takes off there will be 64Bit Xeon which will definetely stunt Itanic's adoption. So, who's the right choice for Scooter when we know that Itanic's development is sponsored by Xeon's sales?
.. and also, There have been an agreement for Solaris on Itanium since 1998 or something (sorry no link check google). never managed to find out why it's cancelled.

I would not be surprized at all if Intel offered Xeons for free for a while (better said a contribution for something in the value of its sales to SUN) for not going the Opteron-way.

I'd be surprized if they took such an offer. Itanic is after their most lucrative market and their only strategic move is to choose Opteron in order to force Intel make Xeon 64 bit.

(You know, they are giving not only CPUs away but whole Servers and Software as well to seed the market with Itanium. Which is reasonable - should have done long before, because that they do it now after Madison is on the market for half a year it looks desperate.)

They have no choice. That's the only niche left. If they can't entrench here Itanium will just be a replacement for PA Risc and Alpha but only if they get enough software support.

regards,
chr