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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: A. A. LaFountain III who wrote (56451)	4/26/1999 6:59:00 PM
From: Gopher Broke	Read Replies (1) \| Respond to of 1571808

Re:Intel and data centers FWIW my take is as follows. Intel have so far executed flawlessly and AMD have been stumbling. To upset the applecart requires only one of two events: - Intel fails to execute flawlessly or - AMD fails to stumble. Assuming Intel continue to execute flawlessly then they are left in the unenviable position of relying on AMD continuing stumbling in order to retain their market share. Not a very proactive way to control your destiny. So how to regain control and boost revenues despite AMD? plenty of cash in the Internet companies. What do all those companies need in large supply? Improved/larger server farms and the technical expertise to deploy them. Intel can probably help. My guess is that Intel have spotted both a real opportunity and a way to avoid a decline that was otherwise inevitable. My question is whether they will be able to control the repercussions of this new business encroaching on what was their customer's territory.

To: A. A. LaFountain III who wrote (56451)	4/26/1999 7:01:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 1571808

Tad - Re: " : what is the significance of AMD becoming more focused in MPUs " AMD is not becoming more focused in MPUs. Vantis has been out of sight/out of mind for two years. Unloading Vantis is no big improvement - AMD has ignored Vantis and this market for many many years - as you can judge by the ZERO GROWTH in Vantis while it's competitors - Xilinx & Altera - have blossomed. The $500 million may come in handy, however, as AMD continues to burn cash at a fast clip. This $500 mil should last 2 quarters at least. Paul

To: A. A. LaFountain III who wrote (56451)	4/26/1999 7:37:00 PM
From: RDM	Respond to of 1571808

Tad, you are quite right IMHO. The Intel Data Center investment is not likely to yield the same returns as a stock buy-back might. It is a big shift in corporate culture, and perhaps too big for Intel. It requires a marketing channel far different from their present one which may be very difficult for them to obtain. I think that this is more likely an experiment for them. They are trying it out for size, but in the end they probably will never make a major commitment to it.