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To: combjelly who wrote (152182)	12/12/2001 10:10:24 AM
From: wanna_bmw	Read Replies (1) \| Respond to of 186894

Combjelly, Re: "Notice that I qualified my statement about AMD driving the cost of server chips down. I personally think they can, but there is a good chance they cannot. To ignore that possibility, or to discount it as not possible is blind." The server market that we were talking about - that of the large multiprocessor SMP systems, is a market that AMD has no product for - at least until Sledgehammer. Driving down ASPs is what AMD does best, but that's only assuming that AMD could get a foothold in those markets. I'll tell you one thing, though. Since enterprise servers sell for hundreds of thousands to millions of dollars already, the difference between a $500 CPU and a $4000 means little to the difference in cost for a given system. $4000 is already considered "commodity" pricing. If you look at what IBM charges for their 4 or 8 processor modules (usually around $50,000 to $100,000 each), the per processor cost far exceeds Intel's "commodity" server CPUs. Driving down costs further is of course a threat to be taken seriously, but you have to realize the economies of scale in that market - not to mention AMD's ability to penetrate that market. wbmw