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AMD purchases SeaMicro as part of a rather clever strategy

by Alistair Lowe on 1 March 2012, 10:31

Tags: AMD (NYSE:AMD), SeaMicro

Quick Link: HEXUS.net/qabde5

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As part of what AMD calls its 'disruptive server strategy', the firm has purchased micro-server maker, SeaMicro, for the grand total of £210 million.

Why was this such a 'clever' move you may ask? Aside from pushing forwards with AMD's Cloud computing agenda, allowing the firm to break into the market, not only as a supplier of components but of complete systems, SeaMicro was a big promoter of Intel products, offering cluster designs featuring Sandy Bridge and Atom processors, with some of the firm's server designs capable of accommodating up to 786 Atoms.

In a single purchase, AMD has not only equipped itself as a server system OEM but dealt a blow to the competition, Intel, at the same time. The micro-server market is expected to boom and is forecast to capture 10 per cent of the total server market by 2015 and, SeaMicro was, until now, Intel's primary partner in the emerging market segment.

"We are accelerating AMD's transformation into an agile, disruptive innovator capable of staking a data centre leadership position," stated AMD CEO Rory Read, "The unmatched combination of AMD's processing capabilities, SeaMicro's system and fabric technology, and our ambidextrous technology approach uniquely positions AMD with a compelling, differentiated position to attack the fastest growing segment of the server market."

Whilst it's expected that SeaMicro servers will continue to offer up ARM and MIPS based offerings in the future, Intel is off the table, with AMD looking to equip servers with Opteron processors sometime this year. Let's hope that AMD hasn't dug its own grave, avoiding any backlash from Intel and its giant asset purchasing pockets.



HEXUS Forums :: 10 Comments

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I think they might get a backlash if they still let ARM based server be sold, it would either have to be specifically AMDs own chips or everyones, else its on the fine border on anti competitive behaviour i would have thought anyways as it always seems common sense never makes it way into these areas (the commissions etc).

Good decision regardless by AMD, their chips are extremely good for servers and yes Intel is actually going to have serious competition! I just hope AMD can back it enough :)
Well isn't it only anti-competitive if SeaMicro owned a large part of market share, but either way it is both clever and very risky
warejon9
Well isn't it only anti-competitive if SeaMicro owned a large part of market share, but either way it is both clever and very risky

AMD says they will be still supporting the Intel products AFAIK.
Misread the article
"Whilst it's expected that SeaMicro servers will continue to offer up ARM and MIPS based offerings in the future, Intel is off the table"

So they will probably either sell none or all chips, seems silly to sell arm ones as you will be taking potential market share away from yourselves!
“We are accelerating AMD's transformation into an agile, disruptive innovator capable of staking a data centre leadership position,”
“The unmatched combination of AMD's processing capabilities, SeaMicro's system and fabric technology, and our ambidextrous technology approach uniquely positions AMD with a compelling, differentiated position…”

This guy needs to lay off the coffee and/or hallucinogens. An “agile, disruptive innovator?” What the actual fudge is that meant to mean?