IBM drops AMD chips

[seanc]

Well, they're cutting their own throats with this one...

They could have had a good thing going with inexpensive AMD systems running Linux... Now they've lost half of the equation... Sigh...

[DiscoLando]

I tend to sit in the middle on the whole AMD vs. Intel debate, but man, it really seems like AMD has been getting the shaft lately.

Maybe AMD should have hired the Blue Man Group?

[RobRich]

IBM and AMD have never been the best of friends. For example, IBM had support probs over older Slot A Athlons, mainly due to system incompatibilities and heat issues. These early Athlon probs resulted in lost profits for IBM, plus probably forced a small portion of the IBM user base to switch brands. Definitely not good for business, even if the probs were likely IBM's in the first place.

Otherwise, IBM has a large corporate client base. Regardless of specifications or benchmarks, most businesses still purchase Intel. Been this way for nearly a decade now within the corporate world, so it will take quite a change for these same people to consider opting for a more powerful AMD system, even if it costs less.

Any rate, IBM stock is performing above my expectations. It has been one of the few companies to actually survive the current lull in the tech industry. IBM has learned to adapt to today's market. Surprising, as an internal IBM study in the 70's proved it would take several millions in useless overhead to just design a cardboard box!

Robert Richmond

[Ultima]

Guys,

what I'm gonna say now, is just what I heard of my contact at AMD UK, which has visited me a couple of times, viewing my work.

I dunno if it's true, and if it is, Intel will never admit it, but he said the following:

It seems that Intel is paying those companies, smaller ones then IBM, a certain amount of money, and we're talking millions here, to stay with Intel, and drop AMD.

If this is really true, then I'd say Intel is playing a dirty game, and AMD stands little chance, if it were never to come out in the open, for Intel may be losing marketshare pretty rapidly to AMD, it is still very many times bigger then AMD, and can afford these kinda dirty games.

Once again, I say, I dunno if this is true, but he told me this, and it would explain the fact that more pc builders are dropping AMD as a supplier for cpu's.

If it is true, and it were never to be profen, I feel sorry for AMD, but I doubt that they will last long against Intel.

Ultima

[daveleau]

Well both processors are having problems if you really look at it. I think it is a side-effect of the heated competition. I guess this is the only time competition could be considered bad, from what I can remember. Why do I say this? Intel is having major revisions done on the PIV because of a hasty copntract with Rambus. Now their whole architecture is going to be under scrutiny because of the move to DDR. Hopefully it will have a positive effect instead of an adverse one. AMD is having major heat issues. While it is a gret overclocker and is stable to 60degreesC, it is still running very hot and many have had to return their chips or scrap them because of heat related burnout.

Dave

[CMonster]

This shouldn't surprize anyone -it's a simple matter of economics really; Intel offers a better volume discount (possibly even better if you agree not to use AMD chips), and the Intel chips can be sold for more $$$ since the average consumers have all been brainwashed by advertizing for so many years.

AMD can hardly afford the advertizing alone not to mention discounts....

The best thing that could happen is for a Japanese company like Sony to purchase AMD - then within 2 years people would be saying "Remember when these things used to use only Intel chips?"

[Wormo]

Man, if Sony were to buy AMD imagine how far that would push the Playstation series along!

[Vincelom]

Well, let's think about this. If I was IBM I would want more than 1 supplier of chips at my disposal for obvious reasons(bargaining power, not getting screwed by a monopoly and a choice of whoever's chips are better). I think IBM just made a business decision here, I can't see them trying to purposely squeeze AMD out of the CPU war.

Vince

[dec13ver]

This is a price cutting measure... the less options they offer the less hardware they have to keep in the warehouse, the less labor goes into configuring machines, and all that. They can make it one streamlined process... it also cuts down on customers questions. instead of explaining what the differance between AMD and INTEL is they just ask how fast do you want it... The only way to get these benifits was to drop AMD b/c they sure as hell ain't gonna drop Intel.

[wizman]

THe problem when manufacturers lie about computer products and performance or pressure to upgrade to needless products is they forget that computer users are largely intelligent and well informed. Sales and engineering get into disagreements because of different approaches to a business proposal. One is dishonest and mean whime the latter is completely honest but sentimental or expensively ambitious.

[wizman]

THe problem when manufacturers lie about computer products and performance or pressure to upgrade to needless products is they forget that computer users are largely intelligent and well informed. Sales and engineering get into disagreements because of different approaches to a business proposal. One is dishonest and mean whime the latter is completely honest but sentimental or expensively ambitious.

[wizman]

THe problem when manufacturers lie about computer products and performance or pressure to upgrade to needless products is they forget that computer users are largely intelligent and well informed. Sales and engineering get into disagreements because of different approaches to a business proposal. One is dishonest and mean whime the latter is completely honest but sentimental or expensively ambitious.

[Shagnasty]

It's a common business practice to offer
special incentives (Discounts) for customers
who agree to business Exclusively with a
particular supplier, from Bakeries to NASA
everyone does it. So why do we come down on
MS and INTEL for doing "Good Business"?
I've tried some AMD Chips, from the K6-2's
to the Thunderbirds and while they show
some nice Benchmarks...They just don't seem
to keep pace with the Intel chips in day to
day Crunching. IBM was smart enough to
diversify so they'll survive, much as Xerox
has and will survive...I say let them battle
it out, we'll reap the rewards as the prices
continue to fall...