AMD Unveils a Server Chip Called Shanghai - GoFuckYourself.com

Barefootsies · 11-12-2008, 11:46 PM

The new computer chip is more versatile than a comparable one that Intel will release in a few days, giving AMD an important advantage

Advanced Micro Devices is releasing a computer chip that could give it a much-needed boost against bigger rival Intel (INTC).

On Nov. 13, AMD (AMD) unveiled a processor, code-named Shanghai, for use in servers, the powerful computers that run corporate networks. Unlike other recent chips from AMD, Shanghai is being released on time, and it will be more versatile than a comparable chip due to be released from Intel in the coming days.

AMD says Shanghai will perform 35% better than its previous generation of server chips while decreasing power requirements by 35%, a combination that should help customers reduce operational costs while boosting efficiency. Best of all, it's been met with rave reviews from customers that have tried it in their machines. "It's been tested by enough people who say it performs very well," says Brian Piccioni, an analyst at BMO Capital Markets in Toronto.
Market Share Is Slipping

AMD needs all the good news it can get. The company's share of PC and server chips tumbled to 17.7% in the third quarter, from 23% a year earlier, while Intel boosted its share to 82.1%, according to Mercury Research. The company is also reeling from a price war with Intel and crippling debt associated with the poorly timed purchase of graphics chipmaker ATI, hurdles that have resulted in quarterly losses, a share price collapse, and the replacement (BusinessWeek.com, 7/17/08) of CEO Hector Ruiz with Dirk Meyer. AMD shares tumbled 13% on Nov. 12 to close at 2.57.

With Shanghai, to be sold under the Opteron brand, AMD hopes to show it's got some of its operational mojo back after the disaster that was the previous server line, Barcelona. Introduced in September 2007, but not generally available until April 2008, Barcelona was not only seven months late, but slower than had been expected, damaging AMD's reputation and allowing Intel to recapture much of the market share it had lost to AMD in the server chip business.

Intel's new chip, code-named Nehalem, is due to be released Nov. 17. Sold under the name Core i7, Intel's new chip will resemble Shanghai in an important way. It will sport, directly on the silicon of the chip itself, a component that connects directly with the memory chips in the computer. Known in chip industry lingo as an "on-chip memory controller," the part helps speed performance in what has always been a key bottleneck. AMD's chips have boasted this on-chip memory controller since 2003, while Intel had generally resisted the approach for years.
AMD Has the Advantage

AMD's use of the on-chip memory controller gave it an important leg up on Intel when it rolled out its first generation of Opteron server chips in 2003, and it managed to win business (BusinessWeek.com, 5/3/06) among key server vendors, including Dell (DELL). But that performance lead was short-lived as Intel improved its chips and AMD's began to lag. Then came the Barcelona debacle.

By finally embracing on-chip memory controllers, Intel is expected to produce a series of chips based on the Nehalem design that will deliver screaming performance and over time probably beat AMD on many metrics. But in the short term, AMD has an important advantage. Intel's first Nehalem chip will be suitable for use only in single-chip computers like desktops.

Chips for use in two-chip and four-chip servers will follow in the next few months, and it may be a year before chips for four-chip systems are ready. "AMD will have an advantage of anywhere from a few months to almost a year," says Nathan Brookwood, head of research firm Insight64. "Nehalem will win many of the benchmarks, but it's going to be a while before Intel has qualified them to run in the multiprocessor systems."
IT Spending Slowing

However impressive their chips, both companies face a common challenge. The economic slowdown is forcing customers to curtail IT spending. On Nov. 12, Intel slashed its fourth-quarter sales forecast (BusinessWeek.com, 11/13/08), saying "revenue is being affected by significantly weaker than expected demand in all geographies and market segments." The typical customers for the kinds of servers AMD is targeting with Shanghai are just the financial-services companies and other large corporations responsible for warnings like Intel's.

Market research firm IDC said on Nov. 12 that IT spending worldwide will grow only 2.6% in 2009, significantly less than the prior forecast of 5.9%. The cuts will be worst in the U.S., where spending is expected to grow only 0.9%. "The market is shrinking pretty quickly," says Doug Freedman, analyst at American Technology Research in San Francisco. "Demand is going to be pretty soft next year."

http://www.businessweek.com/technolo...emp_technology

11-12-2008, 11:46 PM	#1
Barefootsies Choice is an Illusion Industry Role: Join Date: Feb 2005 Location: Land of Obama Posts: 42,635	AMD Unveils a Server Chip Called Shanghai The new computer chip is more versatile than a comparable one that Intel will release in a few days, giving AMD an important advantage Advanced Micro Devices is releasing a computer chip that could give it a much-needed boost against bigger rival Intel (INTC). On Nov. 13, AMD (AMD) unveiled a processor, code-named Shanghai, for use in servers, the powerful computers that run corporate networks. Unlike other recent chips from AMD, Shanghai is being released on time, and it will be more versatile than a comparable chip due to be released from Intel in the coming days. AMD says Shanghai will perform 35% better than its previous generation of server chips while decreasing power requirements by 35%, a combination that should help customers reduce operational costs while boosting efficiency. Best of all, it's been met with rave reviews from customers that have tried it in their machines. "It's been tested by enough people who say it performs very well," says Brian Piccioni, an analyst at BMO Capital Markets in Toronto. Market Share Is Slipping AMD needs all the good news it can get. The company's share of PC and server chips tumbled to 17.7% in the third quarter, from 23% a year earlier, while Intel boosted its share to 82.1%, according to Mercury Research. The company is also reeling from a price war with Intel and crippling debt associated with the poorly timed purchase of graphics chipmaker ATI, hurdles that have resulted in quarterly losses, a share price collapse, and the replacement (BusinessWeek.com, 7/17/08) of CEO Hector Ruiz with Dirk Meyer. AMD shares tumbled 13% on Nov. 12 to close at 2.57. With Shanghai, to be sold under the Opteron brand, AMD hopes to show it's got some of its operational mojo back after the disaster that was the previous server line, Barcelona. Introduced in September 2007, but not generally available until April 2008, Barcelona was not only seven months late, but slower than had been expected, damaging AMD's reputation and allowing Intel to recapture much of the market share it had lost to AMD in the server chip business. Intel's new chip, code-named Nehalem, is due to be released Nov. 17. Sold under the name Core i7, Intel's new chip will resemble Shanghai in an important way. It will sport, directly on the silicon of the chip itself, a component that connects directly with the memory chips in the computer. Known in chip industry lingo as an "on-chip memory controller," the part helps speed performance in what has always been a key bottleneck. AMD's chips have boasted this on-chip memory controller since 2003, while Intel had generally resisted the approach for years. AMD Has the Advantage AMD's use of the on-chip memory controller gave it an important leg up on Intel when it rolled out its first generation of Opteron server chips in 2003, and it managed to win business (BusinessWeek.com, 5/3/06) among key server vendors, including Dell (DELL). But that performance lead was short-lived as Intel improved its chips and AMD's began to lag. Then came the Barcelona debacle. By finally embracing on-chip memory controllers, Intel is expected to produce a series of chips based on the Nehalem design that will deliver screaming performance and over time probably beat AMD on many metrics. But in the short term, AMD has an important advantage. Intel's first Nehalem chip will be suitable for use only in single-chip computers like desktops. Chips for use in two-chip and four-chip servers will follow in the next few months, and it may be a year before chips for four-chip systems are ready. "AMD will have an advantage of anywhere from a few months to almost a year," says Nathan Brookwood, head of research firm Insight64. "Nehalem will win many of the benchmarks, but it's going to be a while before Intel has qualified them to run in the multiprocessor systems." IT Spending Slowing However impressive their chips, both companies face a common challenge. The economic slowdown is forcing customers to curtail IT spending. On Nov. 12, Intel slashed its fourth-quarter sales forecast (BusinessWeek.com, 11/13/08), saying "revenue is being affected by significantly weaker than expected demand in all geographies and market segments." The typical customers for the kinds of servers AMD is targeting with Shanghai are just the financial-services companies and other large corporations responsible for warnings like Intel's. Market research firm IDC said on Nov. 12 that IT spending worldwide will grow only 2.6% in 2009, significantly less than the prior forecast of 5.9%. The cuts will be worst in the U.S., where spending is expected to grow only 0.9%. "The market is shrinking pretty quickly," says Doug Freedman, analyst at American Technology Research in San Francisco. "Demand is going to be pretty soft next year." http://www.businessweek.com/technolo...emp_technology __________________ Should You Email Your Members? Link1 \| Link2 \| Link3 Enough Said. "Would you rather live like a king for a year or like a prince forever?"