AMD’s New Opteron 6000 ‘Magny Cours’ Processors In HP, Dell And Acer Server Lines

AMD Opteron 6000 Magny Cours Highlights

• Allows the same chip to be used in 2 and 4 processor designs, removing the extra expense of moving up – the ‘democratisation of the 4P market
• Was endorsed at launch by HP, Dell, AMD, SGI and Cray
• ITCandor expects IBM expected to endorse the new processor later in the year
• Has consolidated its position as an x86 server chip provider
• AMD is more stable and reliable than ever
• Will allow it to catch up ground on Intel
• Is another example of simplification in AMD’s transformation approach

AMD launched its 8-12 core 2 and 4 socket ‘Magny Cours’ Opteron 6000 family of processors yesterday. When Opteron was originally launched in 2003 it had significant technical advantages over Intel – not least in being 64-bit – which allowed the company to become a strong second supplier in the x86 server space. Since then Intel caught up and (arguably) overtook AMD with its Nehalem processors launched last year. The delayed introduction of AMD’s Barcelona chip didn’t help it competitively.

I’ve written elsewhere about the major transformation AMD has gone through in the recent past and have been particularly impressed with its efforts to simplify its approach, as in adopting a ‘good, better, best’ story in its Vision marketing for PCs. The new processor chip also indicates a simplified approach, allowing the same processor chip to be used in both 2 and 4 processor server designs, thus removing the extra expense suppliers and users end up paying when moving up (which it calls ‘the democratisation of the 4 socket market’). This should have the effect of giving more ‘bang for buck’ at the low end, dependent on the developing price comparisons between the two vendors. It has also been continuing to address power consumption issues, which should help its customers’ customers reduce their electricity bills.

At launch the new chip (ahead of schedule this time) was accompanied by a number of announcements from its OEMs, including HP, Dell and Acer. I think it’s a good time to look at where the new processor will fit into their server lines and what values they will have for customers.

HP Has The Widest Line Of AMD-Based Servers

HP announced three new Proliant G7 servers based on AMD’s new chip – the DL165 and DL385 (rack mounted) and SL165z (a ‘skinless’ server for the largest data centre deployments). I’m sure its ISS designers will have fully tested the new chip as they have a reputation for pounding new components before fitting them into new products. HP’s current focus on ‘power per Watt per $’ is well supported by the new processor and I note that it uses its ‘sea of sensors’ in the new servers to help users monitor and adjust usage to reduce power consumption. AMD’s decision to allow cores within the chip to be switched off when not being used will also help. I believe that AMD’s multi-core approach and its decision to use the same chip for 2 and 4 socket designs will give HP servers ‘power performance’ advantages at the low-end, especially for virtualisation and ‘in memory’ database workloads. AMD-based Proliants will also advantages when used to power HP’s Flex-10 flexible network adaptors. Of course Intel will continue to power the majority of HP’s servers and its processors stretch below (in terms of the number of sockets) and above (in terms of the maximum performance). I believe HP server customers will find its new AMD machines will perform well in the centre. For the foreseeable future HP looks like to offer more AMD-based server platforms than its competitors and remain AMD’s biggest customer.

Dell Will Use The AMD Chips In PowerEdge and DCS Offerings

Dell announced its new PowerEdge R815, which incorporates the new AMD chips. It fits with the company’s focus on ‘density’ and will be good for ‘optimal performance, virtualization, energy efficiency and systems management capabilities’ according to Armando Acosta, Product Marketing Manager for the new server. I believe AMD’s new chip will allow Dell to offer 4 socket systems for 2 socket prices. Along with its Intel-based servers it will share its unique Life Cycle controller, which will help with provisioning functions such as system deployment and updates, as well as hardware configuration and diagnostics. Dell is also most likely to use the new chips in its Data Center Solutions (DCS) group to build customised servers for Hyperscale Cloud and High Performance Computing implementations. I believe the new chip should give DCS lots of cores and memory to play with and has advantages in removing the barrier between 2 socket and 4 socket designs. From a design standpoint the neat way in which AMD handles page tables will also be an advantage. Its large-scale users will no doubt benefit as DCS engineers begin to work with the new chip. Dell was one of the last systems vendors to endorse a two-supplier strategy in the server area and it almost certainly has a smaller proportion of AMD revenues as a result. However AMD should be able to consolidate its position in Dell’s PowerEdge and DCS server lines with the Opteron 6000.

Acer Will Use New AMD Chips In Its New server Push

Acer launched new Intel-based servers back at the beginning of December 2009 and was perhaps the most interesting OEM to endorse the new AMD chip yesterday, including it in its Opteron 6000 servers. Acer is of course better known for its PCs, in which at a worldwide level it held a 14% share of hardware revenues, putting it in third position behind HP and Dell in 2009. It has a multiple brand approach to servers, trading under the name Gateway in EMEA and Acer in Asia. Although Acer is not new to the server market – it bought Altos as far back ago as 1990 – it will be pushing the offerings hard in 2010, as they have higher margins (as high as 25% compared with 15% for PCs). In fact the company’s CEO Gianfranco Lanci announced publicly in February that the company is looking to make 4% of revenues from servers in 2010. The new chips will sit neatly in its flexible modular designs, with common hard disk, power supplies and chassis accommodating different processors from either Intel or AMD. I don’t expect Acer to challenge top tier server vendors by supporting machines running huge databases, especially as it appears to have no desire to hire a specialised salesforce. However it will challenge them in the low-end server market for businesses running simple applications such as Microsoft Small Office, where customers will be able to take advantage of the relatively low price for these in 2 socket systems. However it will first need to recruit indirect channels and is unlikely to invest a great deal in doing so.

IBM Is Likely To Join As OEM Later

Other OEMs endorsing the Opteron 6000 at launch included SGI and Cray. I expect IBM to join later once it’s been able to fit the new processor into its heavily integrated designs. In fact IBM’s inclusion of its MAX5 memory extensions in its newly announced Intel Westmere-based eX5 servers is interesting in addressing the more constricted memory addressing of Intel product.

Some Conclusions – AMD Will Consolidate Its Position As An x86 Chip Provider

I believe that Intel has a stronger lead in the x86 server space over AMD than in the PC area, with a market share of around 90%. Given the long delays with its Barcelona chip and the advantages Intel has had for the last year with Nehalem, AMD has brought Magny Cours to market ahead of time. I believe it will be able to consolidate its position and perhaps win market share by the end of 2010. Despite Acer’s entrance, AMD’s success will not be about winning endorsements, since virtually all x86 server vendors already have AMD designs, rather it will be about becoming a more stable and reliable partner to its OEMs. In terms of the new processor, its concentration on simplification (‘democratising the 4 socket market’) and power/performance/price should help in this aim as it helps its partners ship servers and build revenues.
Are you an AMD server user or supplier? How do you see the new announcement – especially in relation to Intel’s? Please tell me by commenting on this article.