AMD’s Acquisition of SeaMicro might cause Intel’s Headache
On a recent press release AMD has confirmed it’s acquisition of SeaMicro, a pioneer in energy-efficient, high-bandwidth microservers. It will be paying approximately $334 million in total, of which approximately $281 million will be paid in cash. AMD believes that through the acquisition of SeaMicro, it will be able to accelerate its strategy to deliver disruptive server technology to its OEM customers serving cloud-centric data centers.
Interesting enough, SeaMicro was a former partner of Intel, another world’s top Chip maker. SeaMicro used Intel processor before on it’s dense server system which uses fabric to connect with the motherboards which also reduces the need for extra storage and network controllers. With the acquisition of SeaMicro, AMD more likely to change the Intel’s processors with it’s very own Opteron processor based server solution by the second half of 2012.
“By acquiring SeaMicro, we are accelerating AMD’s transformation into an agile, disruptive innovator capable of staking a data center leadership position, …SeaMicro is a pioneer in low-power server technology. The unmatched combination of AMD’s processing capabilities, SeaMicro’s system and fabric technology, and our ambidextrous technology approach uniquely positions AMD with a compelling, differentiated position to attack the fastest growing segment of the server market.” said Rory Read, president and CEO, AMD.
Because of this acquisition Intel will definitely suffer, at least at the growing dense server market as long as they don’t come up with their own integrated fabric technology. However, Intel said it will continue to provide it’s processors for SeaMicro server system as long they want it.
Regardless the reality, there is no doubt that Intel has the money and smart people to get their own technology to fight back but definitely it will take some time for Intel to get back on it’s track. Intel still didn’t clarify it’s position on how exactly they will build their fabric and I/O technology. It is pretty clear that Intel is not sitting idle there and watching the show. At least it’s recent acquisition of Fulcrum Microsystems and InifiniBand assets from Qlogic proves that Intel won’t give up so easily.
By the time Intel comes up with it’s own fabric technology, AMD definitely will be far ahead from Intel. Now, it’s just a matter of time to see how much damage AMD can cause for Intel.