AMD-Intel Dogfight

The amazing thing is what kind of progress AMD,which is one-tenth the size of Intel,has made in the white-box server and desktop segments in just one year. Those who need convincing need only check out our cover story, which includes exclusive CRN research showing that AMD has nearly doubled its mind share among custom-system builders in the server and desktop segments.

AMD, which launched a formal channel program only seven months ago, has clearly done some damage in a very short period of time. That's no small matter, given Intel's big footprint. Remember, the $30 billion processor behemoth has more than 50,000 partners in North America, including an estimated 700 Intel Premier providers in the United States. Size may matter, but not if you're not getting the job done in the system builder segment.

At the end of the day, it is system builders that are driving envelope-pushing technology adoption in every segment of the market,from the enterprise down into the home office. Simply put, system builders account for the biggest and most critical segment of the server, desktop and notebook market. No matter how much AMD or Intel thinks it's about Hewlett-Packard, IBM or Dell, it's not. They are followers when it comes to driving cutting-edge technology adoption. The big boys may provide the processor vendors with some hefty volume, but they clearly leave something to be desired in breaking new ground.

That's the big lesson to be learned from AMD's success thus far with its Opteron processor. It was only after the white-box movers and shakers drew the battle lines that HP and Sun, for example, jumped on the AMD bandwagon.

Last week, Intel went to great pains at its analyst meeting in New York to detail its dual-core processor strategy. AMD is pressing forward with its own dual-core strategy. The winner or the loser in this next-generation, 64-bit battle will be determined by system builders. That is something both AMD and Intel would be wise to keep in mind as they do battle with their increasingly powerful processor offerings. Bottom line: A little less engineering prowess and a little more system-builder savvy could mean the difference between success or failure.

Who is winning the AMD-Intel channel dogfight? Let me know at (781) 839-1221 or via e-mail at [email protected].