Give Dell customers the choice to buy AMD

IN A NEWS.COM story earlier this month, Dell CEO Kevin Rollins said his customers aren't really asking for AMD processor based systems. (1). If the interviewer had been imaginative in his questioning, he could have asked: If all Dell customers knew how much better AMD64 processor based technology performed overall over its Intel based counterpart, wouldn't they be demanding the option to buy AMD powered systems? Let's just highlight what those in the know already know.

In an Anandtech motherboard review from August, where the best of Intel and AMD were compared, the P4 platform won only one benchmark test - MPEG 4 encoding. It was last in all the others. When we measure how far in front the AMD platform was in the benchmarks it won, it's clear that Dell's customers should have the option to buy Athlon 64 based technology. (2).

Business Winstone - 13.6%
Multimedia Content Creation Winstone - 9.2%
Far Cry - 15.1%
UT2K4 - 21.4%
Aquamark 3 - 4.6%
Final Fantasy XI - 22.0%
Halo - 21.2%
Quake 3 - 11.4%
Wolfenstein - 10.9%
UT2K3 Flyby - 29.9%
UT2K3 Botmatch - 33.0%
X2 - 4.7%
Comanche 4 - 25.6%

It's the same for servers as well. I'll just point you to AMD's server performance comparison page. (3). Intel, for obvious performance reasons, doesn't publicly compare its processors with those from AMD.

At last year's ClusterWorld conference in San Jose, Dave Jursik, IBM vice president of worldwide Linux cluster sales, said: "It was an important decision for us to adopt AMD's technology, in addition to our longstanding relationship with Intel, which is still in place, by the way. But our customers demanded we come to market with AMD." (4). In November last year we reported that EDA users had demanded Opteron support and got it.

Is Rollins seriously saying that those in the know are not demanding from Dell AMD processor support? From two bulging post bags we reported that our readers, some of whom are Dell customers, had asked or would like Dell to offer AMD processor based systems.

What one should note is that those who had demanded AMD processor support were the "informed". If one is less informed, one's ability to make sound IT purchasing decisions diminishes. So if Dell offered its customers the choice of AMD processor based technology, it would also have to educate them on the performance gains that can be realised.

In that same interview Rollins said that Dell would have to dedicate teams of engineers to design servers and PCs if the IT vendor comes to market with AMD processor based systems. But couldn't Dell just buy ready-made designs? IBM, HP, and Sun have at least one of their AMD64 based offerings externally sourced. Also, by buying such solutions, Dell can quickly bring to market systems that have already demonstrated their enterprise credentials. If those offerings proved successful, the profit generated could be used to bring its own in-house designs to market.

Rollins also said that AMD couldn't produce devices in the same volume as Intel, which no one would argue with. But if required, I'm sure AMD could provide all the x86 processors for the server market. An IDC world-wide survey for servers from 2002 estimated that x86 2004 processor sales would be 5 million units. With its higher ASP (average selling price) I'm sure AMD would prefer to be selling more of those higher value offerings. If Dell gets on the Opteron train I'm sure AMD could meet its server volume requirements. So Opteron should be a viable solution for Dell to begin its AMD64 journey.

Until just recently the loss making Gateway brand was still officially an Intel only shop. To help the company reach its financial goal - profitability, the IT vendor has at last done the blindingly obvious by introducing two AMD powered PCs. One of Dell's financial goals is to become a 60 billion dollar revenue company. But is that goal credible when it doesn't offer the best performing x86 processor based solutions?

It seems clear to me that Dell is treating its customers shabbily. When AMD is clearly leading in the performance stakes, and if our bulging mail bags are indicative of what is generally felt across the board, then Dell has to seriously think again about offering AMD processor based solutions.

As we said in that EDA piece: "So just remember, even with all the attributes that AMD64 brings to the table, if you want your vendor to give you an alternative choice, you will have to garner wide support and shout your demands from the rooftops."

In Dell's case it's clear that many are shouting from the rooftops. But is anybody genuinely listening? As the editor made clear in a piece about the real reasons why Dell spurns AMD:

"While the volume of letters we've published in the last 10 days represent only a fraction of those we've received, Dell's CEO Keith Rollins is most unlikely to be swayed by customers urging his firm to sell PCs using AMD."

"Most unlikely, but not completely impossible."

"This is not because Mr Rollins listens to customers but because the siren voices on the Island of Intella sing far sweeter melodies than AMD can."

It seems apparent that Dell's ear is far more attuned to its monopolistic type supplier than those who should be of most importance - its consumer and business customers. As two readers made clear in their letters:

"I've been building my own AMD-based systems since they were 386 clones. Now, my latest system is the upmarket Athlon 64 3500+. Dell does not have my business because they do not carry AMD. Additionally, when I buy on Government contracts, I purchase HP servers -- not Dell -- Dell does not carry AMD."

"You can add me to the list of people who think Kevin Rollins [is] off his rocker. This is also why my company passed Dell by on the last two rounds of desktop purchases. We wanted AMD's because they are better suited for office applications, and are cheaper too, but for some reason Dell doesn't seem to understand that."

I believe those who want Dell-AMD should follow the example of the two readers above. But those who make that decision should make sure that they inform Dell as well. A point in time may arrive when a critical mass is reached, which even the mighty Intel dollar cannot hold back. Let's hope that happens soon. µ

See Also
Intel hopes Dell won't go AMD

Dell and AMD: The postbag is getting heavy
EDA users demand Opteron support and get it
Gateway brand loses Intel only status
The real reasons why Dell spurns AMD
Dell AMD memorandum leaked

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