Tech | March 29, 2010 | 0 comments

AMD Recruits Acer in Fight to Win Back Server Share From Intel

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March 29 (Bloomberg) -- Advanced Micro Devices Inc., trying to win back market share lost to Intel Corp., said Acer Inc. will start using its server chips for the first time.

Acer, the world’s second-largest personal-computer maker, will build machines based on the 6000 series of Opteron processors that AMD introduced today.

“They’ve really gotten back onto their product road map,” said Gianluca Degliesposti, an Acer vice president in charge of developing its server business. “There wasn’t a better moment for us to jump into the market.”

AMD’s new server-chip design, Magny-Cours, is the company’s first major push to recover ground it lost amid earlier product delays. Taiwan-based Acer is trying to repeat its rise up the ranks of laptop and desktop PCs in the market for servers, the machines that power corporate Web sites, e-mail and databases.

Both companies are aiming at the market for cheaper computers that use two chips, an area that accounts for the majority of shipments, and one where AMD hasn’t made deep inroads. AMD is also reducing its prices.

“This is the first time in over four years that we’ve launched a new platform,” said Patrick Patla, general manager of AMD’s server division. “I want to go for the bulk of the market.”

AMD, based in Sunnyvale, California, fell 1 cent to $9.02 in New York Stock Exchange composite trading on March 26. The stock had declined 6.8 percent this year before today.

Intel Competition

The new chips will cost between $266 and $1,386 apiece, compared with predecessors that cost as much as $2,649. AMD’s chips also have the ability to attach more memory, an important asset for servers that manipulate large files, Patla said.

Acer entered the server market in December with computers using Intel chips. It decided to use AMD chips so it could offer customers machines with more memory, Degliesposti said.

Acer took the No. 2 rank in overall PC sales from Dell Inc. last year, capturing 13.4 percent of the market in the fourth quarter, according to research firm IDC. Hewlett-Packard Co. was first, with 21 percent.

Intel, the world’s largest chipmaker, began selling a new set of server chips this month that have six cores built into one piece of silicon. AMD’s new design comes in 8- and 12-core versions.

Adding multiple cores to processors increases their ability to perform several tasks simultaneously. Most current chips have two cores, with higher-end processors using four.

During the design phase, AMD often names chips after Formula 1 racetracks. Magny-Cours is located in France.

http://www.businessweek.com/news/2010-03-29/amd-recruits-acer-in-fight-to-win-ba...
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