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AMD bets on 64-bit computing
http://www.sina.com.cn 2003/04/23 11:05  Shanghai Daily

  In the biggest gamble of its 33-year history, Advanced Micro Devices Inc was to launch yesterday a high-powered microprocessor that makes a distinct break from the path of rival chip-maker Intel Corp.

  Unlike past AMD 32-bit chips that were effectively Intel clones, Opteron can process data in 64-bit chunks.

  That's different from Intel's strategy in its exponential leap to 64-bit processing. AMD's new processor will run today's programs without suffering in per-formance, something Intel's comparable, more expensive chip, cannot equal.

  "(AMD) is truly becoming a broad-based supplier in the computing industry," said Hector Ruiz, the company's chief executive. "To me, it's the pinnacle the company has been trying to reach for quite some time."

  Though Opteron could offer a smooth transition from 32-bit to 64-bit computing and help AMD crack the lucrative server market, the company faces considerable challenges in getting the chip in machines.

  As of Monday, the day before Opteron's New York City launch, no top-10 server companies - such as Dell Computer Corp, Sun Micro-systems Inc or International Business Machines Corp - have announced they will use Opteron-based servers.

  "The top-10 do have to be careful that they don't tick off Intel," said Jack Gold, an analyst at the Meta Group. "This is political, no matter what anyone says."

  And Microsoft Corp, which makes the ubiquitous Windows operating system, is not expected to release a beta version for Opteron until this summer. Today's 32-bit Windows will run on the chip but will not take full advantage of its capabilities.

  AMD also faces financial trouble, reporting last week a US million loss on US million in quarterly sales. It has repeatedly cut costs and recently axed 2,000 jobs in an effort to return to profitability.

  Such news casts a shadow over the new chip, which seeks to attract big server makers that require stability from their suppliers.

  "The success of Opteron is really going to be not so much a question of performance at this point in time but of the ability of AMD to sustain that performance because the market is not static," said Thomas Thornhill, an analyst at UBS Warburg.




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