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AMD unveils three new dual-core Opteron chips

6 March, 2006
By Liam Lahey

The goal may be to keep it cool but the dual-core chip market is heating up with the news Advanced Micro Devices Inc. (AMD) has introduced three, dual- core Opteron processor chips for x86 computing and performance-per-watt capabilities. The new processors are designed to help minimize overall server power consumption and cooling requirements.
The dual-core AMD Opteron processor Model 885 (for up to eight-way/16- core enterprise-class servers) and Model 285 (for high performance two-way/ four-core workstations and servers) are immediately available. The third chip, Model 185 (for one-way/two-core servers and workstations), is expected to be available within 30 days. All three run at 2.6GHz, officials said.

"AMD integrates two AMD Opteron processor cores onto a single die, allowing them to communicate at full processor speed," said Randy Allen, corporate vice president, server and workstation division, for Sunnyvale, Calif.-based AMD. "That means dual-core AMD Opteron processors are the only native dual-core x86 systems available today for customers who want efficient solutions for their data centres. Data centre managers can fill racks with dual-core platforms without worrying about increased electricity and cooling costs."

Dual-core AMD Opteron processors offer significant performance gains while operating in the same power and thermal infrastructure as single-core Opteron processors, the company said.

According to Michelle Warren, research manager for the Evans Research Corp. (ERC), with respect to the timing of the release it is the beginning of the final month in the first calendar quarter. Thus, AMD is building off a successful quarter in 4Q05, and a successful year in 2005.

"The IT buying season is not as it is in Canada. Here, we have seasonal shopping with traditionally strong first and fourth quarters. In the U.S., it is more consistent throughout the year. So for Canada, the timing of this announcement will enable IT departments to consider, beta test the technology, before implementing the technology later in the year (on a widespread level)," she said. "For those organizations that opt for an early- adoption, they will have a unique opportunity to do so in the second and third quarters of this year."

However, because of the government-buying season in the first quarter, and depending upon when the Tier One OEMs will have shippable product, it will impact that market for Canadians, Warren continued.

"Certainly, with AMD shipping inventory at the end of March, the government customers of our system builder community will not benefit from this technology this year," she added.

Meanwhile, AMD's rivalry with Intel continues. Canadian-branded PCs with AMD and Intel processors grew in 2005, however, the growth that AMD experienced in 2005 bit into Intel's market share, according to ERC's latest figures.

As Intel was the dominant player in 2005, this didn't come as an unexpected surprise," she said. "The competition will certainly intensify in 2006, as both vendors are strongly committed to the system builder community and both want market dominance."

Warren Shiau, senior IT analyst for The Strategic Counsel, said the timing of this latest AMD announcement broadly follows the company's timeline for updates of its 100, 200 and 800 series processors.

However, an interesting point is AMD's playing up of power consumption and heat generation, he said.

"Coincidentally, many people do feel that certain Intel implementations do have more heat and power issues than a comparable AMD implementation, for instance, certain blade configurations, but some of that has to do with chassis design as well as processor performance, and to be fair, Intel is doing a good job of outlining where it's going to reduce power consumption and heat production," Shiau said. "The newest 100, 200 and 800 series are super products that perform great in every category.

"For the channel, street prices for Opteron have typically been favorable versus Intel, so Opteron's pick up should continue to rise as AMD is delivering a very good price, performance (heat and power) package. For a white-box builder doing high performance machines, these are going to be really attractive." Opteron was designed to give AMD a crack at the corporate x86 server market, Shiau told eChannelLine. AMD designed a great chip, priced it right and has kept it up-to-date. The impact has been to create an alternative to Intel.

"Corporate users are seeing faster product development from both AMD and Intel because of the competition, and more pricing leeway or flexibility from server vendors," he noted. "Even Dell has been putting out floaters about maybe in the future doing an AMD-based server. So the heat is really on in this market."

Insofar as AMD's new Opteron dual-core chips are concerned, a number of original equipment manufacturers (OEMs) have announced support.

IBM said it would support the new processors in its servers and workstation product lines, with the BladeCenter LS20, e326m server, and IntelliStation A Pro. The LS20 blade and e326m rack server will utilize the dual-core AMD Opteron processor Model 285.

Sun Microsystems revamped and expanded its entire x64 AMD Opteron processor-based server, workstation and High Performance Computing (HPC) product lines with the new dual-core processors. Sun's support of the AMD Opteron processor in its Sun Fire x64 servers and workstations, including the Galaxy Sun Fire X4100 and X4200 servers, and its recently announced Sun Ultra 40 Workstation, would continue, officials said.

Hewlett-Packard too will add the new chips across its portfolio of AMD Opteron processor-based HP ProLiant servers and workstations. Dual-core AMD Opteron processor Model 885 (for the four-processor/eight-core ProLiant DL 585 and BL45p), and Model 285 (for the two-processor/four-core ProLiant DL385 and DL145 G2 and the ProLiant BL25p and BL35p server blades). HP said it would also match Model 285 with the HP xw9300 Workstation that features multi-processing capabilities and support for dual PCI-Express x16 graphics.

ERC's Warren said AMD has a strong following within the system builder community. To increase its' share it AMD must continue to focus on that market, maintain robust inventory levels, and continue to bring innovative product to market.

"Intel is the current market leader and is firmly committed to the system builder community. Intel is also an avid supporter of channel marketing programs, and improving communication with its customers. Likewise, Intel also has to maintain inventory levels, quick-turnaround times, and bring innovative products to market," she said. "In Q4 2005, AMD finished the quarter with 48 per cent of Canadian-branded server shipments. Intel had 52 per cent. AMD's shipments were up 14 per cent annually." In 2005, AMD finished with 44 per cent market share and Intel had 56 per cent, according to ERC. AMD's shipments were up by 16 per cent, Warren said.

The dual-core AMD Opteron processor Model 885 is priced at US$2,149 in 1,000-unit quantities and the Model 285 is priced at $1,051 in 1,000-unit quantities. The dual-core AMD Opteron processor Model 185 is scheduled to be available at month's end; pricing information was not provided.

 
 

Reprinted by permission of Integrated mar.com (integratedmar.com), EchannelLine © Copyright 2006 Integratedmar.com Corporation.

 
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