AMD starts selling Intel based servers – it does make an intriguing catch phrase, correct?
AMD’s latest acquisition of SeaMicro has caused some ripples. SeaMicro is a US based exclusive start-up claiming high power and space reductions (both key factors in the server market). And it currently sells exclusively Intel based servers. Its technology includes a custom CPU (Atom or Xeon) + DRAM + Freedom Fabric ASIC.
AMD has seen its market share in the server market fall from 15% in 2007 to 6.5% in 2011. Add to it the fact that almost 22% of the company’s market share depends upon server sales. So, this acquisition will strengthen AMD’s stake in this sector.
Outlook here may well include – AMD phasing out Intel’s design/chips and replacing with its own (the thread performance of its CPUs score over Intel’s) or perhaps ARM (following its partners (IBM, Dell, HP) and…. at the mention of partners, with AMD selling chips to its existing partners and also selling servers which count these partners as competition, this acquisition can pose a channel conflict