Back in the day, when single core “dinosaurs” roamed the earth, we introduced the AMD Opteron™ processor with Direct Connect Architecture and changed the data center landscape – for the better. The first integrated memory controller in an x86 processor. Change was good.
What helped our new server processor take off? Two clear things: innovation and a market hungry for change. But how is that appetite today?
Understanding the market dynamic, and more importantly, the customer needs, is critical with any new product. In 1999 millions of servers were replaced due to Y2K, so in 2003, there was a natural inflection point in the market as those servers reached their traditional lifecycles. The economy was strong and people were open to the idea of something new. But it isn’t always like that.
Today’s economy is helping turn up the contrast on changes in the data center; more importantly, in regards to unnecessary changes, which are not viewed as positively by customers.
Take for instance the migration to DDR-3 memory. Next year, when DDR-3 memory is expected to drop in price, you will have access to lower latency, lower cost and lower power memory. At that time, DDR-3 could represent a savings and value to you. Today, however, DDR-3 has higher cost, higher power consumption and higher latency. Change can be good, but only if change is to something better. (EETimes has a strong opinion about this.) If you are struggling to make the most of your IT budget, expensive memory, which can represent up to 50% (or more) of the cost of a server, is not a good idea.
When IT staffs are being cut back and resources are being stretched to their limits, platform stability has a comparatively higher value. New image management and more complex systems typically mean more resources required to deploy and manage the systems, something many organizations just can’t justify in today’s tight economy.
AMD’s platform strategy is built around longevity, not churn. Our stability means that you can get more value out of the systems that you deploy because the ROI over the life of the server can be higher.
We plan for our customers to be able to transition their purchases to “Istanbul” processors later this year, allowing them to move to the measurable benefits we offer with 6-core processing, yet still maintain the same platforms and images that they have on today’s “Shanghai”-based systems. (Watch a live migration video.) Service spares don’t have to change. IT teams don’t need to be trained on new systems. Customers don’t need to spend extra dollars outside of the hardware in order to take advantage of the new platforms. Managing the new “Istanbul” system will be virtually identical to managing the “Shanghai” system, with the same BIOS, drivers, and management interfaces. This means you get the benefit of change, without the extra baggage.
And in today’s economy, who can afford the baggage?
Update – It looks like I am not the only one saying this, CRN readers feel the same way: http://www.crn.com/hardware/216402221
John Fruehe is the Director of Business Development for Server/Workstation products at AMD. His postings are his own opinions and may not represent AMD’s positions, strategies or opinions. Links to third party sites are provided for convenience and unless explicitly stated, AMD is not responsible for the contents of such linked sites and no endorsement is implied.


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