Paul, check out the Weisel: looks like he figured out which side his bread is buttered on, kind of. Maybe another day he'll get a couple of more neurons working and realize this means no server business from Compaq for AMD.
The deal won't pose a real threat to Intel rival Advanced Micro Devices Inc. (AMD), they concluded, but could reduce Sun Microsystems Inc.'s (SUNW) portion of the server-market pie.
"Today it's not Intel versus AMD, but Intel versus Sun," said Eric Ross of Thomas Weisel
Of course, this is the "Dell going AMD" fanaticist. He ought to be up there with "DEWEY WINS" by now.
Compaq-Intel Is Threat To Sun, Neutral To AMD -Analysts
By ELENA MOLINARI
Of DOW JONES NEWSWIRES
NEW YORK -- A few hours after Compaq Computer Corp. (CPQ) announced its partnership with Intel Corp. (INTC) to use Intel's processors in all its 64-bit server products, industry watchers were figuring out how the pact will change the sector's power balances.
The deal won't pose a real threat to Intel rival Advanced Micro Devices Inc. (AMD), they concluded, but could reduce Sun Microsystems Inc.'s (SUNW) portion of the server-market pie.
"Today it's not Intel versus AMD, but Intel versus Sun," said Eric Ross of Thomas Weisel.
Earlier Monday Compaq announced it will use Intel's Itanium chips in its heavy-duty corporate computers.
"A number of companies like Compaq, IBM, Hewlett-Packard and Dell have started aggressively to make big e-commerce servers," Ross said. "An increasingly number of those machines uses Intel chips," while fewer and fewer are powered by Unix software made by Sun Microsystems.
Officials from Sun Micro weren't immediately available to address the matter.
Advanced Micro, whose bread-and-butter is personal-computer chips, won't feel the impact of the deal in the near future, analysts agreed.
Advanced Micro in the past announced plans to enter the enterprise market, developing a 64-bit architecture. Analysts, however, believe even that product would focus more on high-end PCs than on big servers.
"Today's announcement doesn't change a lot for AMD," said Joe Osha of Merrill Lynch & Co. "Their prospects in the high-end server market were not exciting anyway."
"PCs - that's where they are going to do well," Osha added.
A spokeswoman from AMD declined to comment on the matter, saying only the company's new processors, serving both 32- and 64-bit servers, will be released in the second half of 2002.
Both AMD and Sun Micro were trading higher Monday, by 0.9% and 2.8% respectively.
-By Elena Molinari, Dow Jones Newswires; 201-938-4047; elena.molinari@dowjones.com
Tony |
