Thursday, April 20, 2006

The green grid

Advanced Micro Devices, Hewlett-Packard, Sun Microsystems and IBM announced the Green Grid project Wednesday to help computing customers reduce energy consumption and to gain a competitive advantage by letting customers know which companies can assist.

AMD has always been looking for efficient tie-ups in the market to keep its pace and momentum maintained. The market has always been cruel to the low profile players. Earlier it was only Intel which held commanding position in the market by keeping the string tight on partners like Dell and HP. After the grand failure of Itanium (often known as Itanic) HP learnt the lesson and maintains equal relations with AMD and Intel. Sun has always given more priority to its sparc processors. But after seeing the demand and performance of 64 bit x86 processors it opted to go with AMD. IBM is collaborating with AMD to develop its processors too. They have formed an INVENT alliance.

The main purpose of the Green Grid Project is to develop energy efficient computing solutions in future and reduce the expenditure of enterprises using their products. The point to note here is that AMD already excels this arena and beats rival Intel by a substantial margin (AMD's Opteron mainstream server processors consume 95 watts, compared to a range of 110 to 165 watts for Intel's accompanying Xeon).

Intel (as expected) has not joined this alliance yet but Intel's spokeperson said "We were not asked to join". He also expressed that they were ready to join any such alliance in case if they are asked, regardless of who's organizing it, we're always ready to participate as long as it's focused on the customer not just issuing press releases."

The interesting part is that AMD is playing Intel's own gameplan to beat them by making strong market alliances.

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