AMD exec questions Intel Xeon claims

by Scott Bicheno on 8 April 2009, 16:46

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD)

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Hidden costs

Fruehe goes on to suggest the Intel is guilty of either over simplifying the situation or not understanding it in the first place. He then lists some costs he thinks would be associated with the manoeuvre described by Intel, thus implying some or all of them had been left out of the Intel calculation:

  • Consolidation prep
  • Migration of the data
  • Security
  • Testing
  • Unplanned consequences
  • Licensing changes
  • Disposal

On top of all this has to be added the cost of labour, concludes Fruehe, and opines that the cost of hardware is usually the lowest cost of a server deployment project by far. He makes no counter-claims on behalf of AMD Opteron based server deployments.

Ultimately only the project managers of a given server deployment can calculate the unique costs associated with it, but do you think Fruehe has a point or is this just sour grapes from AMD. Let us know in the HEXUS.community discussion forums.

 



HEXUS Forums :: 4 Comments

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Sounds like nit-picking to me. The hidden costs in a lot of cases aren't just hidden, they are nullified by being carried out by salaried staff.

I guess AMD just wanted to have a dig. Now they have put themselves into a spot where they cannot promote new hardware with the same kind of justifications without Intel pointing to their own blog.
I have to say the nice man from AMD is correct. It's just not apples with apples. Sure you'll get power savings, depending on the device that the chip is installed in you may even get other DC benefits like better cooling.

Think about it also in the current climate, the old servers are nicely depreciated and are just assets to gain a nice sweat.

New devices are a capital investment, or revenue cost if you are leasing.

Then there are all the costs associated with the removal of the old servers, cabling, build out of new servers, virtualisation layer all of these easily out weigh any power savings you'll get.

This doesn't mean the business case isn't there to move to a virtual environment as a whole, but the whole picture needs to be worked on rather than just the processor of the server!
Well now the next time AMD ever promote the fact that you can and should replace older servers with new Opterons to make usage more efficient, it won't be just Intel, it will be most of the tech sites that remind AMD of this blog entry

Reminds me of an old adage about glass houses and stones ;-)
I think Intel know what is involved and have only quoted savings on the swap of hardware and not the aossicated costs as Intel will have no idea what it would cost company X or Y to do the work.

I think AMD are just having sour grapes, at the fact Intel came up with the idea about replacing yoru old servers with these ones to save money, I have no doubt had AMD said it first, Intel probally would have done the same.

Kimbie