AMD’s Opteron Attracts Big Players

AMD has played an important and perhaps transforming card into the server and workstation market, offering the first 64-bit processor, Opteron, that is compatible with existing 32-bit x86 software.  This could crack the barrier to the 64-bit market faced by Intel’s Itanium offering, which has been hindered by the slow pace of new or ported 64-bit software.  The new AMD64 technology allows customers to protect their existing software investments by continuing to use all their 32-bit software until they decide to implement new, 64-bit software.  Existing 32-bit and new 64-bit software can run side-by-side, so AMD believes computer systems based on the AMD64 architecture can create the foundation for a unified 32- and 64-bit information technology infrastructure.

A number of industry players intend to take advantage of this notion, including IBM, offering systems based on the new AMD chip.  AMD believes the offering is sufficiently appealing, because of the 32-bit compatibility, that it is pricing the processors much more closely to Intel prices. (Historically, in its Number Two position, AMD would use significant price differentials as a way to attract OEM customers.)  The offering will start with 2-way processors priced at:

Model 240 $283 each in lots of 1,000 - Performance at or better than Xeon 2.6 plus path to 64-bit computing  

Model 242 $690 each in lots of 1,000 – Performance at or better than Xeon 3.06 plus path to 64-bit computing

 

Model 244 $794 each in lots of 1,000

Other vendors who plan to support the new chip architecture include Fujitsu Siemens Computers, Oracle, and Microsoft.  Microsoft has committed to a 64-bit version of its Windows 2003 operating system for the Enterprise and Data Center in mid-2003.  SuSE and Red Hat have also promised Opteron support, with SuSE shipping a 64-bit Linux which also supports 32-bit Linux applications first.

IBM not only intends to use the Opteron chip, they also played a key role in getting the chip’s manufacturing technology ready. AMD used the services of IBM’s engineering and technology services business, a relatively new IBM engineering consulting practice that works with chip design customers such as Sony and Toshiba.  IBM helped with a short-term technology transfer assignment around its expertise in Silicon-on-Insulator technology.

Intel response to AMD’s 32- plus 64-bit play may be adding some already discussed firmware, the Execution Layer, which allows 32-bit programs to be executed 10-100 times faster in both Windows and Linux environments on an Intel 64-bit chip.  It’s rumored that this technology might show up first on an Intel chip later this year.  

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