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Tuesday, 07 September 2010 09:13

Intel server share falling

Written by Nick Farell
intel_logo_new amd

AMD opens the champers
Chip-giant Intel's lead in the server market is being squashed by AMD. Latest figures from beancounters Trefis show that while Intel has maintained its leadership position in the server processor market, it has lost significant market share points to rival AMD.

The rot started in 2005 and Trefis thinks that the declining trend will continue in the future. The analysts say that the main reason for the decline can be attributed to the success of AMD’s Opteron microprocessors compared to Intel’s Xeon.

Intel’s server processor market share has decreased from 95 per cent in 2003 to 70 per cent in 2009. Between 2004 and 2007, Intel lost around 25 market share points to AMD.

AMD chips had memory controller integrated on the CPU, while Intel’s didn’t, resulting in superior performance by AMD microprocessors. Intel’s high-end server chip, Itanium, required customers to rewrite software.

AMD’s 64-bit processor was back compatible with 32-bit operating systems while Intel’s was not. Trefis thinks that Intel’s server processor market share will fall from 73 per cent in 2010 to around 68 per cent by 2016.

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+23 #1 Voyager 2010-09-07 09:49
good times for AMD after a so long struggle
+9 #2 LuxZg 2010-09-07 10:19
What I see from the graph alone is that market share barely changed between 2007 and current status.. So that 25% drop was in 2003-2007 time frame, where AMD indeed had a great technology to push the sales up.

I got my hopes high while reading this article, but it's not reporting facts completely.. Actually, there is slight rise of Intel share lately :/
0 #3 muppet show 2010-09-07 13:51
Intel server share will be much, much lower than 68% in 2016. It's possible that if they do well they'll still have that much of the x86 server market, though I would expect AMD to make further in-roads with the Bulldozer based chips.

However, by 2016, ARM designs should have taken a massive chunk out of some markets - particularly rack servers. Neither Intel nor AMD can compete on performance per watt, cost or customisability .
+8 #4 The_Wolf88 2010-09-07 15:02
Way to go AMD :lol:
+7 #5 dondrei 2010-09-07 15:09
:D Opteron Powah!
+2 #6 iicsus 2010-09-07 19:10
Still running a socket 939 OpterOwn, with a 50% OC.
-1 #7 Bl0bb3r 2010-09-07 19:58
We'll have to see how much GP will change the way applications are processed... by 2016 AMD should have its graphics division backed up by the OpenCL standard properly and given the fact that ARM can do one thing while intel another, AMD might be able to do them both if everything goes according to plan, giving them the upper hand for any of future clients.
-3 #8 Naterm 2010-09-07 22:02
What a shady article. Intel has been hammering AMD in sales lately with it's Xeon 5600/7500 combination. The Opteron 6100 hasn't gone over particularly well it seems. This article was news four or five years ago, it's not now.

Intel has the strongest server line-up it's ever had and it's only going to continue to get stronger. The one place intel is vulnerable is in non-traditional servers. AMD can't beat them in racks or blades, but it does have a chance in the hyper-scale systems that need extremely high performance per watt. Bobcat could really help AMD here, as lots of low-power, slow processors can actually beat out a few power hungry but powerful processors in such scenarios. Intel hasn't seemed willing to push Atom at this market, but AMD could with Bobcat.
+2 #9 blandead 2010-09-08 00:48
This news is not 5 years ago it is news today go check some financial articles it came out today. Even from 2007-2010 AMD managed to keep hold of most of the market share it took

"The average of Trefis member forecasts for Intel's server processor market share indicate a decrease from around 73% in 2010 to around 68% by 2016, compared to the baseline Trefis estimate of a decrease from 70.5% in 2010 to 65.5% by the end of the Trefis forecast period.

The member estimates imply an upside of 1% to the Trefis price estimate for Intel's stock. AMD's new line of microprocessors is said to deliver 44% better performance than earlier versions of Opteron. How Intel manages to face AMD's competitive pressure and regain its lost server processor share is yet to be seen."
0 #10 Naterm 2010-09-08 16:57
Look at the first quarter of this year. Intel jumped from 89.9% of the x86 server market to 93.5% with AMD dropping from 10.1 to 6.5%

That's huge for intel. It's basically down to the fact that AMD really has no advantages left. Hypertransport allowed them to hold ground in the 4S and up market when intel still had archaic FSB processors there (Xeon 7400). Intel hit AMD with a nasty combination of the 4/6-core Xeon 5600s and 4/6/8-core Xeon 65/7500 processors. The latter is especially important because it took away AMD's last refuge at the 4S and up market segment.

AMD still has HPC installs, but it looks like Cray (technologicall y the market leader) is going to dump Opterons for Xeons with it's next big redesign. I'd guess they'll do it by the XT7/XE7.

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