Dell to choose AMD?

Dell President and CEO Kevin Rollins said recently that the company is considering selling servers that use the AMD Opteron chipset.

The company, which is reportedly Intel's best customer, considers some of AMD's technologies to be advanced. Rollins said this during the company's third-quarter earnings conference call.

InfoWorld reports that Dell is considering Opterons for servers, workstations and gaming machines, but not general PCs, since AMD could not keep up with Dell's capacity plans for desktop PCs.

AMD beat Intel to the market with 32/64-bit technology, in which 64-bit processors can run 32-bit applications without any performance degradation. Intel followed with its Extended Memory 64 Technology (EM64T) technology. AMD launched the Opteron in 2003.

Dell is the only company among the large systems vendors that does not use AMD's Opteron processor. IBM has two 1U AMD-based servers, the IBM eServer 325 and 326. HP also has two AMD-based servers, the dual-processor DL145 and the quad-processor DL585.

Analysts have long believed that Dell would have to kneel down under pressure and adopt the AMD Opteron. They speculate Dell will introduce AMD-based servers in the first half of 2005.

Although AMD-based servers would cut into Dell's margins for Intel Xeon-based machines, Dell must be facing pressure from customers to supply AMD-based servers for high-performance compute clusters and Web servers.

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