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Technology Stocks : Dell Technologies Inc.
DELL 138.940.0%Dec 5 9:30 AM EST
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To: John Koligman who wrote (84958)12/11/1998 5:30:00 PM
From: rudedog  Read Replies (1) of 176387
 
John -
Good question. Intel has, over the last 5 years, developed a very sophisticated infrastructure to lock OEMs into their technology and raise the switching costs. The switch away from the socket designs of the pentium era to the slot 1 and other designs of today was created to make it nearly impossible for another chip vendor to produce technology which worked with Intel chipsets. This means that an alternate design requires a completely different set of supporting technology, and different firmware as well. As we have seen recently, all of these can induce incompatibilities which must be designed around and the results tested.

AMD is not in a position to provide anything like the kind of engineering assistance which Intel provides. AMD will give reference designs and additional engineering help. but Intel will give a manufacturer a smorgasbord of options, up to and including a complete turnkey engineering effort or even providing tested board level product. Dell uses this last approach in the dimension line. Gateway is even more dependent on Intel.

It might take a team of 100 engineers to work the development and test of a single AMD product, and then there is the testing, support, ongoing lifecycle engineering. An equivalent product can be done using Intel technology with a handful of engineers.

This works great as long as Intel can supply the goods. And from Intel's point of view, it also works great when Intel can't supply the goods - since those vendors are in no position to do anything but wait for the Intel products.
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