Dell has announced two new PowerEdge servers that feature AMD Opteron processors: the PowerEdge 6950 and PowerEdge SC1435. The Dell PowerEdge 6950 is a four-socket server designed for demanding enterprise applications such as database, server consolidation, and virtualization, as well as migration efforts from legacy RISC-based systems. The PowerEdge SC1435 is a two-socket, rack-dense server optimized for high-performance compute clusters, distributed Web serving, and SMBs.

Both servers feature PowerEdge enhancements including: SAS (Serial Attached SCSI) hard drives for fast, reliable data transmission with less thermal output; a TCP/IP Offload Engine to help reduce traffic on host processors; enhanced virtualization technology for improved performance, management and utilization in virtualized workloads; and PCI-Express I/O for high-performance Ethernet, RAID, InfiniBand, and Fibre Channel interconnects.

In addition, Dell and Oracle have integrated Dell OpenManage and Oracle Enterprise Manager to provide for simplified management of the Oracle application infrastructure through the ability to manage Dell PowerEdge servers within a single management console that is familiar to Oracle database administrators. This integration includes support for lifecycle management of Dell PowerEdge servers through features such as system discovery, reporting, and configuration; managing server hardware health; cross-platform system event notification; and event-driven policy execution. The PowerEdge 6950 and PowerEdge SC1435 with dual-core, next-generation AMD Opteron processors are priced from $6,499 and $1,299 respectively and are now available worldwide.

During the past couple of years, AMD has managed to challenge the perception of being the little guy in the world of x86-based processors. The release of the Opteron brought x86-compatible 64-bit computing to the marketplace long before industry leader Intel deigned to do so. Despite the notable reluctance of many ISVs and systems vendors to give the burgeoning Opteron its due, The Not So Little Processor That Could has managed to force Intel to scurry to market with 64-bit Xeon EMT, IBM to truly embrace the processor within its System x family, and others to take the Opteron seriously. The announcement that Dell has jumped on the Opteron bandwagon illustrates that AMD has done what others thought unlikely and has broken out of the artificial Opteron pigeonhole so many tried to force this chip into. From a technological innovation viewpoint, Dell is one of the most trailing companies in the marketplace. Dell's margin-driven direct sales approach leaves little room for the risk inherent in unproven leading edge technologies; thus the company almost never embraces the latest and greatest, but rather waits until others have worked the kinks out of new technology and then enters the marketplace en masse. This is what we are seeing happen with this announcement.

Dell's decision to embrace Opteron gives customers with an aversion to risk clear guidance that AMD-based servers are safe to deploy. While it is said that no one is ever fired for buying IBM, it is rare that anyone is chastised for spending too much acquiring a Dell solution. With its legions of customers and an important place in the pocketbooks of SMBs, Dell is in a good position to sell AMD-based solutions into these organizations where others may have not been able. Given Opteron's penchant for energy efficiency, Dell can also ride the green bandwagon by promoting its up to 20% reduction in energy consumption while delivering more than double the performance per watt of its past servers. Nevertheless, most SMBs are not in the business of buying technology; rather they are buying solutions to business problems. Any further significant inroads that Opteron will make in this market will be dependent of the availability of business solutions, i.e., ISV software targeted to various organizations' needs. Although some more pioneering ISVs have been creating 64-bit versions of their applications, the blessing from Dell on Opteron should help more application providers make the choice to take advantage of AMD's 64-bit solution.

Overall, we believe that AMD has successfully overcome the initial marketplace resistance to its 64-bit processor and has made it to the mainstream of server computing. Although this does not spell imminent doom for Intel's position, we believe it does show that the marketplace has spoken loud enough for those who eschew the leading edge for the comfort of tried, tested, and true to step up and embrace Opteron as a viable server solution for masses.