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Dell to Only Use Intel Chips in Corporate Products
Feb 19, 2004
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Personal computer maker Dell Inc. announced that it has no plans to use Advanced Micro Devices Inc. (AMD) chips in its products because it says corporate customers are not asking for them to be used.

Dell will stick to using chips made by Intel Corp. in its desktop, laptop computers, and servers, said Dell President and COO Kevin Rollins.

"If you look at the corporate market, which is where 85 percent of our business is today, the corporate user has not yet found confidence in AMD, and so most of the corporations use Intel," Mr. Rollins said. "Where AMD has gained a good foothold is in the consumer space. That has not been the primary focus of Dell strategically."

He added, however, that Dell tests every AMD chip, including its new 64-bit Opteron processor, in its labs.

"The most recent run of both Athlon and Opteron chips have been better than anything we've seen them do before so we would never say never," Mr. Rollins said of Sunnyvale, CA, U.S-based AMD.

International Business Machines Corp. (IBM) and Sun Microsystems Inc. already sell servers using AMD's Opteron chip. Hewlett-Packard Co. (HP) will begin using the chips in server computers, Reuters reported in January, citing sources familiar with the matter. Analysts have waited to see if Dell would follow suit.

Opteron, like Intel's far more expensive 64-bit Itanium chip, crunches 64 bits of data at a time compared with the 32-bits processed at once in the ubiquitous Intel-standard, or x86 chips. Opteron and Itanium are faster at data-intensive computer uses than the 32-bit variety that Intel's Xeon server chips represent.
Opteron, which launched in April 2003, has been adopted not only by major vendors such as IBM, but also by a wide range of second-tier, or "white box" server makers. (Reuters)

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