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Tuesday, August 01, 2006
IBM to Use AMD Processors in New Servers

IBM , the world's largest technology services company, on Tuesday is announcing new server computers giving businesses access to computing power typically used by universities and large corporations.

The five systems, set to be unveiled at a New York briefing on Tuesday, use microprocessors from AMD, which has been making inroads against industry leader Intel.

The systems promise more computing power but are more energy-efficient and generate less heat than earlier machines. They also cost less than comparable high-performance systems, IBM said.

The announcement is a boost for AMD as it hopes to maintain momentum against a raft of new chips from Intel. Dell, the world's biggest personal computer maker, in May said it planned to use AMD's Opteron processors in high-end server computers by the end of the year, ending a 22-year exclusive relationship with Intel.

AMD Chief Executive Hector Ruiz is scheduled to attend the New York briefing, along with Bill Zeitler, head of IBM's systems and technology group.

International Business Machines Corp. of Armonk, New York, faces tough competition in the server market from Hewlett-Packard, the leading global server vendor by revenue in the first quarter, according to market researcher IDC.

IBM started using Opteron processors in 2003, but sold them mainly to high-performance users such as universities and research centers.

Businesses can put the new IBM systems to use in an array of applications, from intensive data processing to running Web sites. They are also suited to delivering video and television over the Internet.

IBM expects to start selling the new servers in the third quarter, when it will also announce pricing.

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