

Dell Still Intel Only 399
wyckedone writes "Dell Computers has no plans to offer the new dual-core AMD Opteron even though it has been proven that "Opteron's integrated memory controller and multiple Hypertransport interconnects help it outperform Intel's Xeon processor on many benchmarks, especially those that measure the performance of memory-intensive applications.". HP, IBM and Sun Microsystems have all announced that they are going to release servers based on the new AMD chip. Why not offer customers an alternative that has better performance instead of risking the lose of those customers to another vendor that does? Intel has no plans to release a dual-core Xeon until 2006."
what (Score:2, Insightful)
Re:what (Score:5, Insightful)
If you work at a place like that, it's a tough sell (if not a bureaucratic nightmare) to get hardware from a "non-preferred" vendor.
Re:what (Score:3, Insightful)
I have a bigger problem with... (Score:5, Insightful)
SFW (Score:5, Interesting)
Remind me why I should care?
Re:SFW (Score:5, Insightful)
Re:SFW (Score:5, Insightful)
One of the big things they get is first cut at the latest technology. The Dell XPS Gen5 has been announced as the first system to use Intels new "Dual Core" chips, which gets them all sorts of Free (as in Beer) advertising. Charging Dell a lower price might get them in trouble, but there are few laws about who you have to give access to early technology mules.
Also... (Score:5, Insightful)
Would there be enough new revenue from selling AMD systems to justify that? It has to be NEW revenue, because if it's just replacing one revenue stream with another at a greater cost, why would you bother?
Dell probably does not see enough additional revenue from AMD sales to justify the increased support costs.
Re:SFW (Score:5, Insightful)
However, by saying publicly, "We're thinking nice thoughts about AMD" they can pressure intel to lower their prices, so as not to lose business from one of the larger home pc manufacturers.
Business as usual.
Re:SFW (Score:5, Insightful)
Weighing the options does not mean just choosing which is the fastest processor, or which is the best technology, but weighing how much outlay it would cost to retool if you want to switch.
Sometimes it's smart business to pick the lesser technology, if it keeps your costs down.
Especially with Intel advertising subsidies (Score:4, Insightful)
Re:SFW (Score:5, Insightful)
Re:SFW (Score:3, Interesting)
Re:SFW (Score:5, Informative)
Training production and support staff
Additional inventory storage: motherboards, CPUs, fans
Multiple BIOS
Adjustments to tech support website to make sure the average home PC user can easily find the right updates All these issues, and likely many more, must be addressed when expanding your product offering. You also need to look at where Dell makes their money. Do companies buy AMD based systems? I haven't switched jobs in a while but my current and previous employers were exclusively Intel for the MS Win32 systems.
Re:SFW (Score:2, Insightful)
Remind me why I should care?
One reason for some people to care is that Dell has a near-monopoly in the education market. A lot of folks at Universities want to buy AMD, especially when they've got what looks to be the best 64-bit solution, but keep getting told to just buy a Dell from their Purchasing Department.
Dude! (Score:5, Funny)
FP
from the duh dept. (Score:5, Interesting)
Or so I've heard.
Re:from the duh dept. (Score:5, Informative)
Re:from the duh dept. (Score:3, Interesting)
Re:from the duh dept. (Score:3, Interesting)
LoB
Makes perfect business sense (Score:5, Insightful)
1. AMD can't produce enough chips to satisfy Dell's demands
2. Intel has proven a reliable platform for Dell
3. Most end user's don't care
Re:Makes perfect business sense (Score:5, Insightful)
No, you have it backwards. If customers didn't care, they'd pick the faster AMD chip. Home users care about what's "inside"; which doesn't mean they know any better. It's just that they've seen the commercials, and their computer "expert" friend advises to get the Intel processor. So that's what they ask for when they call Dell, and that's what Dell gives them.
Re:Makes perfect business sense (Score:5, Insightful)
Remember, Dell's main market is not geeks (who will build their computer from scratch anyway), it is the mass market.
Re:Makes perfect business sense (Score:3, Informative)
You calling my father a geek?
Are you?
Re:Makes perfect business sense (Score:3, Insightful)
Painting with a pretty broad brush, aren't you? Every system I own except my laptop is AMD-based, and not a single one of them is overclocked. Why? Because AMD consistently kicks Intel's ass in terms of Price/Performance ratio, especially when you back off a couple of steps from the top-of-the-line model. At just about any price point you select, AMD offers a significantly faster CPU than Intel.
Re:Makes perfect business sense (Score:3)
Re:Makes perfect business sense (Score:5, Insightful)
Business parterners that can't meet demand are a liability. AMD has a very limited manufacturing capability compared to Intel. The kind of production runs that Dell requires is something that AMD can't accommidate, certainly not as long as they're supplying HP and white box makers.
Re:Makes perfect business sense (Score:5, Interesting)
This is the smartest point I've seen made on this story. AMD fanboys may want to think about what they're wishing for -- if AMD's #1 priority becomes feeding Dell, keeping hobbyists happy is going to fall way down on their list.
Re:Makes perfect business sense (Score:3, Insightful)
However, if they refuse to sell any AMD then customer
Re:Maybe, but not for that reason (Score:5, Insightful)
That is (one reason why) Dell isn't going AMD.
For those who hadn't noticed (all geeks, apparently) Dell is not a computer company. It is a manufacturing company. It has made great, innovative strides in extremely efficient manufacturing. They just happen to be doing it with computers. The choice of CPU in the box means as much to Dell as the choice of compressor in a Siemens fridge means to Siemens. And the CPU means as much to most consumers as the compressor in their fridge.
Sure, some compressors are probably more efficient, reliable, quiet, whatever. But if you have n million invested in robots that can install one brand of compressor and not another, are you going to switch? What if you have a huge set of automated hardware tests all of them based on Intel motherboards - are you going to switch? What if you have hundreds of call center scripts based around diagnosing known Intel related problems?
The actual capability of the processor is NOT RELEVANT. Dell don't sell PCs because they make the best ones. They sell them because they make them very cheap, and can deliver huge orders on time, even when those orders are semi-custom. Dell does not achieve this impressive feat by switching components every time one of them becomes slightly better than another. If you want that kind of thing, there are many PC makers who will do it.
Re:Makes perfect business sense (Score:5, Insightful)
Re:Makes perfect business sense (Score:4, Insightful)
You say this because you are the World's Foremost Expert on Dell's Supply Chain Management system?
Because (Score:5, Insightful)
Because Dell looked at the numbers and determined that the exclusively-Intel price discount that Dell gets is more valuable than the potential revenue they'd get by offering AMD.
Re:Because (Score:2, Interesting)
Better performance depends on your metric (Score:3, Insightful)
Re:Better performance depends on your metric (Score:5, Insightful)
Opterons are rock solid.
Both are GREAT chips.
Via makes some GREAT motherboard chipsets.
Via makes some mediocre motherboard chipsets.
SiS makes some pretty good motherboard chipsets.
SiS makes some crap motherboard chipsets.
Not-well-known manufactures take some of the crappier parts, and put them on even crappier boards. Then you get instability.
With an Intel Chip, and an Intel Board, you know everything is going to work.
With an AMD Chip, you have to select a motherboard. You've got to do a little bit of research to make sure you aren't buying crap.
Don't get me wrong, I'm a huge AMD fan. I've got ~7 systems in my home, and several at work, and they are ALL AMD systems. But I've been burned in the past by poor quality motherboards, so I know that they do exist.
Intel Paper-Launch(TM) (Score:4, Interesting)
Intel is paper-launching it's "desktop" Dual Core CPUs today ($1000+ desktop CPUs... Mmmm..) Meanwhile, AMD has supplied IBM, HP, etc with Dual Core CPUs for their server lines, which you can order today and receive within a few weeks.
This generation goes to AMD, pure and simple. The Opterons are going to swallow the Intel systems in performance whole. Maybe even price in some configurations.
Paper Launch story at The Inquirer (Score:2, Interesting)
TheInq on Intel Paper Launch [theinquirer.net]
Sub-$200? (Score:3, Interesting)
Business Choice (Score:5, Insightful)
Dell has chosen to stick with Intel which isn't the worse choice. It means lost profits but it also means less support for two distinct chips.
It is up to the above three companies to prove to Dell (and Intel) that AMD is a viable alternative by speaking with their dollars and buying Opteron servers
Re:Business Choice (Score:5, Insightful)
There is no reason why there can't be a viable, profitable market for AMD-based servers and for it simultaneously not to be in Dell's interest to pursue it. There's room for both Dell and Sun (and Alienware and white box vendors) to coexist, just like, believe it or not, it's possible for both Americans and Indians to have jobs.
It would not be good for Dell's bottom line (Score:5, Insightful)
Re:It would not be good for Dell's bottom line (Score:3, Insightful)
Re:It would not be good for Dell's bottom line (Score:4, Insightful)
Re:It would not be good for Dell's bottom line (Score:4, Interesting)
Re:It would not be good for Dell's bottom line (Score:4, Insightful)
The reason is the way Dell do business. They have very little inventory, and an incredibly streamlined build process. Adding an additional CPU to the mix means that it would need to be rolled out across a number of servers, meaning more components, more suppliers, more support and more staff. In the end, people buy from Dell because they're Dell, not because they sell Opterons. So the net effect here is that by competing against another 3 manufacturers in Opteron territory, they're making the choices harder for their own customers who want Dell and don't give a monkey about what's in it.
I can agree that product range is a great idea, but that's the key to confusion and lack of product identity rather than choice. I came across a company recently that sold 30 models of laptop, 44 mono laser printers and 41 types of colour inkjet. Some of those products were competing against each other and certainly didn't have time to research it so I didn't buy.
That company was HP, and I certainly think some conservative business talk could help them out right now.
History: Failure to learn, doomed to repeat (Score:5, Interesting)
The i386 chip came out, it was faster, but IBM decided not to move right away - after all, who needed all of that extra speed? The i286 was fine!
If memory serves me right, I believe that Compaq came out within seconds telling anyone who would listen that they had i386 processors now - and made it their policy to always support the latest and fastest chips.
I wonder if this will hurt Dell at all. Odds are, with the enterprise vendors, not too much - but all it takes is a little mistake to give your competitors a chance to catch up. And as slim as margins on PCs are, I'm not Dell can afford to slip up in a situation like this.
Re:History: Failure to learn, doomed to repeat (Score:2)
So essentially until a desktop OS that requires it is adopted, then "good enough" will continue to be the rule... and that's Intel's new place in the business -- "Intel: It's good enough"
Re:History: Failure to learn, doomed to repeat (Score:3, Informative)
Not to flame (Score:5, Insightful)
Which isn't to say your 12 year old doesn't, but that is besides the point.
Re:Not to flame (Score:2, Informative)
Fallacy: Dell only sells cheap bottom-of-the-barrel boxen to people who don't know anything about computers.
Fact: Dell is a huge supplier of servers for small-office and enterprise use.
Re:Not to flame (Score:3, Insightful)
Re:Not to flame (Score:2, Interesting)
AMD are also crippled on the desktop by MS's inability to produce a 64 bit OS. People feel comfortable with microsoft OS's and an OS upgrade is always a good driver to upgrade.
Let's face it, if Longhorn came out at the same ti
Just dont' buy a Dell. (Score:2, Interesting)
Unless, that is, the consumer PC market sees a marked demand for AMD-based systems. Especially
Dell's customers not asking? (Score:5, Insightful)
I think the disadvantage here is that Dell sometimes supplies companies with computers and they're the ones without a big choice. Home users tend to pick dell because it's the easy thing to do.
Re:Dell's customers not asking? (Score:3, Interesting)
I built a 150 node AMD cluster last year of the IBM 326s. This sucka really hauls the mail. Now I'm going to do a simple BIOS flash to all of th
Does Dell really need AMD (Score:5, Insightful)
Dell has never offered AMD. Yet they have grown to be the largest PC company in the world. HP and Compaq can combine and Dell still outperforms them. IBM decides to sell off their PC division. Sun is fighting for its life.
I'm a big fan of AMD, but the "everybody else is doing it" argument has always been a stupid one. It is more stupid when "everybody else", even combined, have withered against the "not everybody else" competition.
Re:Does Dell really need AMD (Score:2, Insightful)
I'm fairly sure they already have.
Dell is afraid... (Score:5, Insightful)
"B-b-but, it's Pentium 4 EXTREME Edition with HT Technology!!1one"
"B-b-but, Intel's better for gaming!"
"B-b-but, If it's not Intel Inside(tm), then it's not worth a damn!"
"B-b-but, Is Windows XP even compatible with AMD?"
Of course. (Score:4, Interesting)
Both are a possibility, but until either company is losing significant marketshare by staying the course they have traveled for so long... It won't happen.
Re:Of course. (Score:2)
There are many other reasons to switch from dell (Score:5, Informative)
The hard drives constantly crashed, raid never worked, and restoring from tape during production time was constant. Parts were never available, and the constant response from their help desk was "flash the bios" or "flash the firmware" when it pertained to nothing that was going on.
At one point they were just sending us new servers for free to fix the broken ones. Note: Those new ones then broke constantly as well.
I think there are plenty of other reasons to switch from dell than a lack of an AMD chip in a server.
(note: I do like dell workstations and home PCs and laptops... just not their servers)
Re:There are many other reasons to switch from del (Score:3, Informative)
Reverse is true, too... (Score:4, Insightful)
Dell is all about low margin *parts assembly*. Works fine for destops.
When we had a drive fail in a PowerVault 220S, Dell sent out a tech to replace the drive, and the entire RAID-5 volume got hosed. That's just simply not supposed to happen. Doesn't happen with the Sun boxes we have here, nor the CPQ/HP ProLiants. The Sun and HP boxes are engineered as systems. The Dell relied on a rebadged Adaptec card, a rebadged copy of Volume Manager, and tech support who don't know anything about how the parts work together.
If your IT stuff is done right, desktops are essentially disposable. Servers, not so much. Restoring a terabyte from tape is still a slow proposition, especially with network-based backup.
Re:There are many other reasons to switch from del (Score:4, Funny)
Dell laptops are the worst brand of laptops you can buy. They break constantly. I go to school with 200 people who own a Dell laptop. Without fail, everyone I know with a Dell laptop has had very big problems.
If you're not buying a Mac, you're much better off with an IBM [ibm.com] or Panasonic [panasonic.com] or a lesser-known brand [abspc.com]
Re:There are many other reasons to switch from del (Score:3, Insightful)
There's about 100 comments on this page about Dell's amazing manufacturing ability, but it's all ignorant misinformation. Dell relies on Flextronics, Selectron, et al to build practically everything they sell. Dell "integrates" the machine by installing the hard drive and taping up the box. Dell
Don't underestimate a company as big as Dell (Score:5, Insightful)
In the end it ALWAYS comes down to numbers. Intel probably gives Dell quite a discount for having Dell's exclusivety. Most corporate customers don't mind the performance difference, since they will never get fired for buying Intel... on the contrary, in the corporate / server world, Intel has a great reputation.
The press fanfare generated by such announcements probably is beneficial to Dell. Remember, (almost) any publicity is good publicity. Everyone that read this thread now remembered Dell exists
Don't worry, one day they probably will conclude its more profitable to also sell AMD - probably when AMD manages to give them a nice discount too
Re:Don't underestimate a company as big as Dell (Score:3, Informative)
I'd like to bet that a fair chunk of machines bought for corporate use are going to be used as desktops. For the vast majority of them, there *is* no noticeable performance difference; neither chip is going to get that report written any quicker than the other.
Sure, I do server-side web-app development, and I'll
Re:MOD PARENT UP (Score:3, Interesting)
However, HP and Compaq had two problems. First, they had eMachines syndrome - they made shitty hardware, and people were starting to realize it. Second, as somebody else said, HP is an ink delivery mechanism for their printers. They're not a computer company. They're not a camera company. They're not even a printer company. They'
In Other News (Score:5, Funny)
Also in the news:
- Ford has no plans to offer the new Honda engine.
- Suse has no plans to offer the new SP2 patch.
- Cadbury's Roses has no plans to offer the new Quality Street fillings.
To answer your question... (Score:5, Insightful)
Any number of reasons come to mind, all pulled from my posterier based on what little I know about Dell's business model and relationship with Intel, but try any of these on:
It could be any combination of the above or something else entirely. Maybe Dell is just making a horrible business decision, but I'm guessing that they've run the numbers and decided that its in their best interests to stay the course. Decisions that seem to be perplexing to us almost boil down to money. Their financial analysts have convinced management that the company is best served this way.
Maybe the time isn't right for an alternative! (Score:2, Insightful)
Right or wrong, markets have inertia. If there isn't enough demand for AMD chips from Dells' huge corporate customers then it makes little business sense to expend effort on providing them. Unfortunately, the technology isn't the only factor here. When sufficient demand exists, expect Dell to get rather more keen on AMD products.
The other factor is AMD's manu
Dell's not stupid... (Score:5, Interesting)
Why not offer customers an alternative that has better performance instead of risking the lose of those customers to another vendor that does?
Why not allow a hugely successful company figure out what's best for it's customers rather than assuming that they would want to please an AMD fanboy.
It's a bit trollish, I know, but Dell isn't hurting. They're doing a great job, even without using AMD. Perhaps doubling the number of configurations would increase their stock on hand, and that would cost more money and cut down on profits. Perhaps it would add complexity to the orders, which might result in poorer customer service. Perhaps the number of customers on a given hardware platform would change, decreasing the amount of testing and QA they could perform per platform, resulting in a loss for customers and vendor alike.
Why not accept the fact that there is more than just a one line blurb, and that maybe Dell actually knows what they're doing...
and their tech support... (Score:5, Interesting)
Not to be a pessimist, but I've dealt with Dell Tech Support 23 times this past year, every time with India, and I had only 2 positive experiences.
The company I work for has a lot of sales folks, who like to break laptops and all. So, I usually end up calling Dell for replacements (fulfill warranties and such) and guess what, I ALWAYS have to talk to Tech Support first. Every single time it's "reboot the machine". Come on! And good luck trying to let them know all you need is a replacement part, they just ask you a bevy of questions first and THEN transfer you when they can't understand you anymore.
They should just automate the damn tech support, it's pretty much the same effect. Those folks cannot understand you, and you end up either with a dropped line or worse, a transfer to another tech support person. BAH!
Re:and their tech support... (Score:3, Interesting)
In other news... (Score:5, Funny)
These announcements have shocked the geek community so bad that highly intelligent virgins all over the world are committing suicide.
Exclusive supplier agreements? (Score:2)
It isn't illegal to have one and it may be a key into DELL's low costs. By negotiating large contracts with vendors from graphics card to CPUs they can get only such a price break, but if DELL, the world leader in desktop computing, agrees to use your computer widget exclusively, well that is worth another penny or two per thingamajig, which adds up to $M for DELL's net profits.
Intel is savvy enough
Re:Exclusive supplier agreements? (Score:4, Interesting)
This is also coupled with the fact that AMD doesn't have the customer recognition that Intel does. Dude I'm getting a Dell is followed by a man in a bunny suit. thats the way things are. On top of it one of AMDs strengths is the enthusiast market (which much of slashdot is). This market runs counter to dells market.
However where this decision doesn't make sense is in their server line. I doubt Intel gives dell a massive price break on Xeon chips (like they tend to with p4's), and I doubt Dell having Opteron chips would lose dell too much of the costs dealing with Intel, but I could be wrong. Basically with the performance of the Xeon relative to the opteron for servers the Opteron looks highly attrractive. From speed, memory performance, heat, and price standpoints. Not selling those chips seems crazy, but who knows. Maybe dell has something up their sleeves.
Phil
Dell Servers (Score:2)
Dell's image has been suffering in the Business World for the last year. They been forced to move their Business support back to the states, due to the ID10ts they hired to outsource their support, there are major flaws to their servers, and their sizing tools are the stupidest in the world.
We are transitioning to IBM Intel Boxes. Main reason we use Intel Boxes, our software vendors tell us to.
*News* for nerds? (Score:3, Insightful)
Intel launches Dual Core TODAY (Score:5, Informative)
Another reason to use AMD (Score:5, Insightful)
I don't know how many people are thinking about the cost of infrastructure to host servers, but that is another reason to use AMD based systems.
Re:Another reason to use AMD (Score:4, Interesting)
So it's not surprising to read that they are avoiding the AMD chipset, if it consumes less power and runs much cooler.
Re:Another reason to use AMD (Score:3, Informative)
In other news... (Score:2, Interesting)
Dell Is Not That Innovative (Score:2)
Whatever (Score:3, Insightful)
Because Micheal Dell likes to reduce complexity (Score:5, Insightful)
Dell would rather lose a few percent of sales that drive the costs of the entire factory higher.
Hardly surprising given other choices they make (Score:4, Insightful)
Advertising is what Sells (Score:5, Insightful)
As for Dell they have always thrown tons of money at Advertising and I would dare say more than most other PC manufacturers with maybe the exception of IBM, though they typically target more business users in the ads it seems. In the end stupid commercial get stupid people to buy stupid things. The smart ones know what they are doing and will buy the best performance for the price.
This could be a good thing... (Score:2, Funny)
Why is this news? (Score:3, Informative)
Why does this surprise anyone? (Score:3, Insightful)
Then it squeezes more concessions out of Intel to be the flag bearer. They get something - more marketing $$$, better volume margines, etc. that're given to them, and soon the dance starts over again.
The reason Dell hasn't used AMD to date is, from the customers point of view, because Intel keeps showering them with money. At the same time, HP is making sales here because they've got quad opteron systems.
So be it. If Intel doesn't keep padding Dell's bottom line, then maybe they'll have a 6850 fitted out with opterons next year.
-Peter
The Unfortunate Truth (Score:3, Interesting)
1: HP builds crap, supports it like crap, and was the first major manufacturer to stop shipping the Windows Operating System discs you paid for as part of the system with the system. Their "recovery disc" is even more crap, when you can get it. They sell computers mainly to bundle their much more profitable printers with. If you disagree, tell me the last time you recommended a Pavilion to a friend you wanted to keep.
2: Sun is overpriced! Let me repeat, Sun is overpriced!!
3: IBM is not as cheap as Dell, is trying to get out of the PC business because they're losing money on the desktop and notebook arenas, and hasn't been winning any customer support awards for end-users/home-users for years, if not a decade.
4: Gateway is dueling with Apple to see who can have a lower market share in computers. They try to sell TV's the way Apple sells iPods.
5: And Dell, who suffers from none of the above, keeps insisting that "Well sell AMD based computers when our customers demand it." How deaf can they be?
6: Alienware and the other niche marketeeters? $$$.
In my book, not a single good choice for a no-problems, affordable, supported, home AMD system. And both myself, my wife's business, and the company I now work for (as well as the last one) have all been loyal Dell customers accounting for well over 1000 units sold so far. Dell does not care about us!
Dell's not going with AMD because... (Score:3, Insightful)
Oh and all this from an AMD fanboy.
I can answer that. (Score:5, Insightful)
Keeping that in consideration, why spend the extra dollrs supporting another chip that doesn't have brand awareness amoung Dell's customers?
People don't want faster computers anynmore, they want computers that work and that they don't have to worry about. The want their computers to be the next generation TV. Some may scoff, but the technical challenge of making a computer that worry free is far more challenging then another 10% speed increase that can only be measured running certian programs in lab like conditions.
Server Chip to Desktop Easier (Score:3, Insightful)
Usually the only thing preventing a server class cpu from being used on the desktop is price.
Alternatively, it is shown that fast desktop chips don't automatically make good server chips due to the different type of workload involved. If desktop chips made equally good server chips, then server chips wouldn't exist at all.
Conclusion: you'll see AMD dual-processor cpus on the desktop before you see Intel dual-processor cpus in servers.
Re:Simple (Score:3, Insightful)
Re:Simple (Score:3, Insightful)
Personally the P4 bothers me. It takes a wack of power and it's so f'ing slow by comparison...
Tom
Re:Seems silly (Score:2)
Flexibility is partly perception. To a non-technical person (i.e. most shareholders), it is almost entirely superficial in terms of techonology (ex. Mhz) and mostly focused on a firm's market position, product-line up, P/E, etc. In other words, technical figures are secondary to profit figures hands down.
Dell is interested in profit. Performance, customer satisfaction, and quality are all seconds to this. Arguably, a mass distributer of desktops cannot