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Lawrence Walsh
Tidal Waves
September 27, 2006
I'm not a big boxing fan, but I sure enjoy the back-and-forth bruising between Intel and AMD. Every time I pick up a newspaper, magazine or Web posting about the two companies, I read about the ceaseless feud and, occasionally, about the technology each is bringing to market.

So, the latest salvo: Intel is racing its quad-core processor to market, hoping to carve out a substantial market lead. AMD is holding back its quad-core products until it can fit all the processors on a single chip and can fully integrate the graphics capabilities of its ATI Technologies acquisition.

The trench warfare in the server market is literally measured, as The New York Times aptly describes it, by bragging rights.

During the past couple of years, AMD has outpaced Intel in technology advancements and marketing. It has stolen share away by being the first to market with dual-core processors, while Intel fell short with its Itanium processor and thousands of layoffs. While AMD is ramping up its production capacity, Intel is beginning to regain the initiative and reverse market share losses.

On the marketing front, Intel's message about building platforms off its processors hasn't resonated as much as AMD's push on processing power and energy conservation message. Unfortunately for AMD, it's nationwide, multimillion-dollar energy campaign never translated to the channel. And, AMD continues to push its antitrust lawsuit against Intel, which--if successful--could rewrite the rules of what constitutes monopolistic practices.

What does the channel care about this bitter war? Not much, if you look at the VARBusiness Annual Report Card results over the past few years. Despite its setbacks, Intel continues to outpace AMD by every measure. AMD admits it needs to do better in messaging and supporting its partners; to date, most of its messaging has been to the end user community.

And how much innovation from the chips makers can the channel and market absorb? Are the refresh cycles so great that these two processor titans can continue in this game of brinksmanship? Rather than focusing on bragging rights, both Intel and AMD should do what got them to where they are today--develop solid technology that meets the needs of their partners and customers. Waging a war of egos is something that will ultimately only confuse the market and distract those who should be focusing internally rather than obscure external targets.

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