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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 259.65+2.3%Jan 23 9:30 AM EST

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To: Tomcat who wrote (164826)7/12/2005 7:05:38 PM
From: KeithDust2000Read Replies (5) of 275872
 
Tomcat, this part is noteworthy:

An IT Manager for a Fortune 500 financial corporation with more than 20,000 desktop computers went a step further, saying that the company has been trying for years to get AMD-based machines from its suppliers, without success. "It is very frustrating not to have a choice," he said, confirming AMD's claim that vendors were not allowed to supply AMD products. "Intel threatened our suppliers that they would cancel rebates if AMD products were offered." He continued, "it has been just recently that one of our suppliers has begun offering some AMD products. I believe AMD has a valid complaint in their lawsuit for what my vendors have described as 'dirty tactics'."

There are some traditional arguments for companies to go rather with Intel than with AMD products - such as proven quality and higher reliability. So, do these two IT managers see any advantage in using Intel over AMD? The first of our correspondents said that Intel's reputation for being more reliable has faded over the years. "AMD's reputation is good enough for us to consider the chips in our operation." Our second executive mentioned that Intel even had recent problems supplying enough mobile processors: "Our supplier was not able to deliver the notebooks we requested, since the processors were not available."

What about AMD's claim that Intel's market dominance results in inflated processor pricing? Both IT managers said initial pricing and even features of a computer are secondary - the service and support package play the primary role in deciding for or against a product. The European manager saw no particular advantage for either company, while the Fortune 500 IT manager mentioned that his company could save significantly with AMD, as "AMD's recent business platform offerings are below Intel's price points."

Our correspondents also agreed that recent AMD processors have become particularly more attractive to corporate buyers. Again, this is not because of their speed or features, but rather because of their power consumption characteristics. "Until recently, this was a non-issue for us," one said. "But when one system consumes 100 watts less power, we are talking about serious money. And this does not even count in the fact that we need an additional 100 watts for the air-conditioner to get rid of that heat." In the case of the second company we interviewed, power savings could amount to more than a million dollars per year!


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Looks like these IT-managers are a bunch of AMDROIDS, too. Just like everyone else in the industry, apart from INTEL employees and investors, of course.
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