AMD in a pickle with latest contract deal

[nicehat]

 

 

 

 

AMD which recently won a contract to supply Verizon with its server needs in preparation for its own cloud computing platform, scored a huge win for the resurging company....Or so we thought. 

 

You see, last year AMD aquired SeaMicro, whose high density servers were an attractive choice for a company like Verizon trying to get into the cloud market. The problem is that more than three quarters of the servers purchased by Verizon are actually powered by Intel Xeon E3, not AMD Opteron chips. Essentially, AMD has become an Intel OEM. 

 

Now remember, my furry brained friends, the whole purpose of buying SeaMicro was to expand AMD's presence into the Server Market space, not to be someone's middleman salesman taking a cut off of the top. Although...a sale is a sale, and in this profit driven world any profit margin is a win for AMD... My 2 cents

 

What do you think about this? A win for AMD? A win for Intel? Both? Neither?

 

http://www.extremetech.com/computing/168265-exclusive-amds-verizon-server-win-was-actually-a-massive-win-for-intel

[Kuzma]

AMD they need all they can get

[KaareKanin]

Kinda weak, but a sale is a sale, as you said ;-) maybe it's a way to ease in to high demands?

[JaeDee884]

My thoughts is as time progresses they'll phase out the xeons.

[Bluejay0]

We can all agree on one thing: AMD is trying to gain power. 

 

Sure this might be a mistake but they are tryign to grow their roots within the market. 

[target39]

This is like Batman and Superman...

[7850OC]

This is like Batman and Superman...

oh please, everyone knows that batman beat superman 

[dalekphalm]

You would've thought that after the ownership change, AMD would have removed Intel CPU's from the server lineup... But regardless, they'll have made a profit margin of some sort or another. AMD needs the money (At least until next gen consoles get into full production in a year or two).

[JAKEBAB]

I don't understand if they are intel chips why don't they buy directly from Intel?

[dalekphalm]

I don't understand if they are intel chips why don't they buy directly from Intel?

Intel doesn't sell servers directly. Verizon bought servers from SeaMicro (Which is now owned by AMD), yet bought servers configured with Intel CPU's. SeaMicro therefore had bought them from Intel (And indirectly that means that AMD bought and sold Intel CPU's).

[Scheer]

I don't get it, where does the CPU cooler go?

[nicehat]

I don't get it, where does the CPU cooler go?

 

On the CPU.

[TheMissxu]

It's a bad thing that AMD does make money off of their own CPUs, but at least they found a way to make money off Intel.

[JAKEBAB]

Intel doesn't sell servers directly. Verizon bought servers from SeaMicro (Which is now owned by AMD), yet bought servers configured with Intel CPU's. SeaMicro therefore had bought them from Intel (And indirectly that means that AMD bought and sold Intel CPU's).

ohk but isnt that saying something about amds cpus there bad? otherwise why wouldnt they remove intel from that company? also even if they didnt remove it for whatever reason wouldn't they try to promote amd cpus more and pressure companies into buying amd servers?

[nicehat]

ohk but isnt that saying something about amds cpus there bad? otherwise why wouldnt they remove intel from that company? also even if they didnt remove it for whatever reason wouldn't they try to promote amd cpus more and pressure companies into buying amd servers?

 

The problem is that since the company was purchased just last year, they really havent had time to redo their product lineup. And since it is a data storage merchant first, SeaMicro will likely still sell Intel products to some extent, although emphasis will understandably be on AMD Opteron based solutions.

[tristan1035]

oh please, everyone knows that batman beat superman 

""I didn't have to go easy on you. A different binding agent, a stronger mix... I want you to remember that. I wanted to remind you to stay out of my way. In all the years to come, in your most private moments, I want you to remember the one man who beat you!

[TechFan@ic]

AMD's Seamicro deal with Verizon includes 4 CPU options, one of which is AMD based.
They still get to sell chips.

[blaze124]

if this means AMD stock will go up imma be a happy camper =)

[Fetzie]

AMD's Seamicro deal with Verizon includes 4 CPU options, one of which is AMD based.

They still get to sell chips.

 

And presumably over time that ratio will shift in favour of AMD.

[Akolyte]

 

 

 

 

 

AMD which recently won a contract to supply Verizon with its server needs in preparation for its own cloud computing platform, scored a huge win for the resurging company....Or so we thought. 

 

You see, last year AMD aquired SeaMicro, whose high density servers were an attractive choice for a company like Verizon trying to get into the cloud market. The problem is that more than three quarters of the servers purchased by Verizon are actually powered by Intel Xeon E3, not AMD Opteron chips. Essentially, AMD has become an Intel OEM. 

 

Now remember, my furry brained friends, the whole purpose of buying SeaMicro was to expand AMD's presence into the Server Market space, not to be someone's middleman salesman taking a cut off of the top. Although...a sale is a sale, and in this profit driven world any profit margin is a win for AMD... My 2 cents

 

What do you think about this? A win for AMD? A win for Intel? Both? Neither?

 

http://www.extremetech.com/computing/168265-exclusive-amds-verizon-server-win-was-actually-a-massive-win-for-intel

 

I think its a win for AMD, AMD can show Intel what they've got...  

[mr moose]

I think AMD knew exactly what they were buying and getting into, because in the current economic climate market control is just as important as profit, the more cloud computing they control the better long term.

My initial thoughts anyway.

[Qwertious]

I think its a win for AMD, AMD can show Intel what they've got...  

A whole load of Intel CPUs?

[Poohy14]

well it could be a win for AMD if they told them if they change all processors and give them a really good price on it then i dont think they will mind or just dont support the xeon when something happens 

[Akolyte]

A whole load of Intel CPUs?

Yeah, It will also give them some extra profit.  And might annoy Intel

[Maxibonbits]

There was probably a few reasons why they used Intel chips. AMD is also a company and they need to make a profit.