Rick,
<any thoughts on how in the world AMD hopes to crack the corporate IT desktop and server market? >
I think there will be two angles that will help AMD get into corporate space:
One is performance - I think AMD has a clear edge here and there is always a segment that will buy performance. And, Intel has a good job of training the corporate (and consumer) guys that they should buy the highest performance grade available to get maximum mileage out of the system. So, that helps
Second is alternatives - there are a lot of buyers out there who would like to see competition in the supply chain. And there are also people who support underdogs (these are the people who love to hate the market leaders and buy Apple, Netscape, AMD, Linux, etc.)
The qual and platform issues I think are minor irritants and are more FUD than reality. The key is OEM support. IMHO, OEMs didn't use K6s in corporate space because AMD was selling K6s solely on price. OEMs hate this because corporate segment is where they want to sell the highest ASP stuff. Asking them to sell K6-2 products based on price is like asking them to cut their own throats. (by the way, from what I gather some OEMs currently hate Intel for bringing in Celerons at a low price without performance penalty and are encouraging AMD and Intel do as much as they can to differentiate products consumer and business segments - AMD has an easier task than Intel on this count) But, with K7 it is different. That alone will make some OEMs adopt. Once OEMs adopt - corporate IS will buy.
As for the server space, Athlon Ultra is going to be a very compelling product. Most of the business here is in single and dual processor systems and AMD was wise to do the chipsets for this segment inhouse. Compaq/Alpha are also going to play a major role in this segment. I say - just watch - you will be surprised how quickly they will ramp in this segment.
I probably wouldn't have bought AMD if I did not believe they would break in to corporate IP market. The questions in mind have to do with when rather than if. Now, if by Q1 or Q2, they don't ship several Mu of K7s, I may change my mind.
Chuck |
