AMD unveils Opteron Upgrade Program 8 April, 2009 By Liam Lahey

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The program includes 2000 series and 8000 series dual- and Quad-Core AMD Opteron processors along with the upcoming six-core processor codenamed "Istanbul". Channel partners and customers can receive up to a 35 percent discount in price ($50 off 2000 series, $100 off 8000 series) by upgrading the generation of their AMD Opteron processor, providing a fast upgrade path to improve performance and energy efficiency within the data center without needing to replace and buy entirely new systems.

"AMD Opteron processors have always provided exceptionally long life cycles and consistent platforms," said John Fruehe, director, Business Development, AMD. "In the current economic environment customers are trying to stretch their IT budgets and to extend the life of their technology investments more than ever, all while improving performance and energy efficiency. This program offers a unique value to our partners and customers, particularly when you consider the enhancements to the 45nm Quad-Core AMD Opteron processor and upcoming six-core Istanbul processor."

Michelle Warren, principal, MW Research & Consulting, said the biggest challenge facing AMD from a marketing and product placement standpoint -- especially in the face of Nehalem -- is staying top of mind with its customers.

"By all accounts, Intel is poised to take a bite out of the market," she said. "This trade-in program addresses a couple of factors: the competitive onslaught by Intel, and the economic condition (whereby customers will hold off on purchases until they are unable to ignore the demands). Addressing both factors will address user concerns."

Eliminating or pushing out the need to upgrade complete systems will seem attractive to end-users, she added. "Before making any decisions in the data centers, however, they should consult their IT solution provider for their recommendation.

"The program seems attractive at first glance. However, it won't be for everyone -- which is why the guidance and advice will be valuable."

Intel has the performance lead at the moment but the cost of new servers in the current economy can be prohibitive, said Rob Enderle, principal analyst, The Enderle Group.

"What AMD is doing is giving buyers the attractive option of upgrading their AMD servers rather than replacing them. The promise is good enough performance at a vastly lower price which should not only help hold the customers but showcase the upgrade advantage that AMD has during the current cycle," he said. "I think it is a good competitive response particularly given the current cost focused economic environment."

Warren Shiau, senior associate, IT research, The Strategic Counsel, said price cuts amount to the same thing in the end because the price is "sticky down." That is, once you lower the price, however you lower it, it stays there. Thus, everything that Intel and AMD does product and price wise is significant these days.

"Whether it's in straight on competition or it's targeted at loyal installed base," he said. "Every bit of market share and margin they can get counts, especially for AMD now that it's in relatively competitive shape."