AMD Launches Energy-efficient Cloud Server Chip to Compete with Intel, ARM

Energy efficiency is a priority, and today’s chip makers offer some of the best power controls available. Centralized monitoring, datacenter power consumption control and thermal output are key ways companies can maintain their own energy consumption – and it’s imperative for cloud providers who maintain vast server farms.

Today, Advanced Micro Devices (News - Alert) (AMD) is expected to announce its new Opteron 3200 series chips for low-end servers, which the company hopes will provide a competitive edge over Intel (News - Alert) in the cloud server market.

Enterprises are increasingly moving toward a virtualized, convergent and cloud-based infrastructure. The need for high-performance chips that are power-efficient and low maintenance is paramount for modern chip-makers. \

AMD's chips will likely compete against Intel's Xeon E3 series chips, used in SeaMicro's SM10000-XE server. AMD is pitching the Opteron 3200 as a "low-cost-per-core" product. Chips are priced between US$99 and $129, while Intel's E3 chips run between $189 and $885.

 “AMD’s expanded product line provides an entry point to new markets,” said Jim McGregor, chief technology strategist at In-Stat (News - Alert). “There is a growing interest in deploying low-power servers in data centers to cut energy costs, but the Opteron 3200 chips are comparatively power-hungry for such installations. A better match would be AMD's low-power Bobcat cores, which are used in low-power PCs.

AMD has had to move quickly to establish a presence in the market, according to McGregor. The company faces challenges from Intel, for example, which is ahead in processor and manufacturing technology.

ARM’s (News - Alert) smartphone and tablet processors are also being tested in servers, and shouldn’t be overlooked. Intel's low-power Atom chips are already up in servers, and Hewlett-Packard (News - Alert) is scheduled to make an ARM-based dense server available for testing in the second quarter.

Everything points to the market for low-energy consumption chips as the current zone of high competition, likely to continue for years to come.