AMD micro server boss welcomes the age of ARM-based servers (interview)
Andrew Feldman, corporate vice president and general manager of Advanced Micro Devices’ server chip business, showed off working 64-bit ARM-based processors for servers last week at the Open Compute Project summit last week in San Jose, Calif.
AMD plans to disrupt the huge x86 (Intel-based) server chip market by using smaller and more power efficient ARM cores in AMD-designed server processors. Feldman is leading that charge, and he says the company will ship ARM-based server chips this year. He predicts that ARM server chips will be 25 percent of the data center market by 2019. If that happens, that’s a big blow against Intel.
AMD isn’t going toe to toe with Intel in designing super-fast server chips anymore. And that may be its path to riches, according to Feldman. Its chips won’t need giant air conditioning systems.
AMD’s shift is disruptive in another way. An x86 (Intel-based) processor takes three years and $300 million to develop. Creating an ARM processor can take as little as three months and $30 million. Intel, however, says that the chip that Feldman talked about has weaker performance and higher power consumption than Intel’s Atom C200 (code-named Avoton) processors that started shipping last September. Based on what AMD unveiled last week, Intel believes it has a 65 percent advantage in performance per watt of power consumed. Intel also notes that the ARM chips aren’t necessarily arriving on the schedule that was originally promised.
Here’s an edited transcript of our interview with Feldman. We’re sure that his words will infuriate Intel.
The turnaround story of AMD $ 3.79 continues with sold out products world wide. From the game consoles Xbox play Station to the Bit coin lite coin GPU part to the server VZ and Google are installing
AMD 2014 Sales (revenue) Projection
Consoles: 20M *$100 each = $2.0 B margin = 17%
Ongoing desktops: = $1.3 B margin = 17%
Ongoing laptops with APU support = $1.7 B margin = 35%
SeaMicro vintage servers = $0.4 B margin = 45%
ARM based servers = $0.6 B margin = 55%
Radeon GPU systems = $1.0 B margin = 55%
MacPro GPUs = $0.6 B margin = 55%
Misc = $0.5 B margin = 35%
Total = = $8.1 B total revenue. with $$550M profit or about $0.82/share
AMD Dec 31 2013 $ 3.83, Jan 19 2014 $ 4.18, Earning call Jan 22 2014 $ 4.75. Feb 18 2014 $ 5.25, Dec 31 2014 $ 10.75 ( 300% gainer for 2014 )
AMD will be strong over the next 3-4 years; will close 2014 at $ 10.75 share, will close 2015 at $20.00 /sh
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