Intel Fined $1.45 Billion in Anti-Trust Case

What Intel did exactly was to pay computer manufactures to postpone, cancel or void AMD products entirely.  I remember about 5-10 years ago there were choices of processors that I could put into servers, Intel or AMD and then I would bid against the 2 processors (with the larger server order sizes) and get more competitive pricing.  But lately (1-2) years AMD has not been an option for a processor for many of the top servers.  But I guess that is because Intel was paying H-P, IBM, Dell etc to not offer AMD and not to even support AMD processors in their older machines.   Intel really did not need to do that to surpass AMD.   Everyone knows INTEL.  They were a good name processor.  Yes AMD is competition, but competition is good.  Who else should get fined in all of this are the server/PC manufactures that took the money & did not allow end users to choose on the processor, increasing overall pricing on servers, desktops, etc.  The processor price is one of the top prices when putting together the server.   While memory is going down, down, down, processor pricing has stayed relatively high and gone up in a lot of cases.

So cheers to you European Commission for calling Intel out, making them pay & forcing them to change their practices ASAP.  I am not one for controlling, regulating businesses, but a fine is needed for all parties involved for this illegal action that has caused all of us to pay WAY more money for processors these last few years or more!

Intel Saves 7,000 US Jobs – Or do they?

Intel recently announced a plan to spend $7 billion to upgrade its manufacturing in the United States that move that could retain 7,000 jobs. 

CEO Paul Otellini outlined plans for facilities in Oregon, Arizona & New Mexico and non overseas.   Intel had to move ahead with its plan for new processors and not break the schedule by shipping work overseas.  The new chips, code named Westmere will not appear in servers until early next year.

Intel received offers from other countries for millions of dollars in incentives but Otellini said no offer could offset the capability the company has in the United States for quality assurance…

Well that was the inital story.. . but the media’s effusive praise failed to note that Intel is retooling existing plants, not building new ones and its 2009 capex will actually be flat or lower then 2009’s.  By “supporting” jobs, it means maintaining current ones.  Another overlooked aspect of Intel’s plan; the resulting depreciation.  Perhaps the real good news is that Intel is sufficiently confident of a recovery to seek ways to lower its tax bill over the next few years????/

Intel slashes price of quad core chip by 40%

Also cut are the prices across a range of chips used in both mobile and desktop PC’s, including Xeon processors for single socket servers as well as older Pentium & Celeron processors.

The price cut comes on the heels of a profit forecast will below expectations as demand for IT related hardware cooled in tandem with a global slow down.  The price reduction will certainly allow Intel to cut excessive inventories by offering a more attractive price to PC makers as well as make room for Nehalem based processors.

Here is an interesting quoter that is from Diane Bryant the CIO of Intel Corporation..

“Investing in new infrastructure routinely, like refreshing old servers, is critical.  At Intel IT, we found that continually enhancing our existing infrastructure actually reduces the amount required to maintain & run our environment and therefore it is a high priority investment for us” 

Easy for her to say huh..? She might have some pretty good server deals there working @ the company that makes the processors.. but overall I see her point.  If you are going to invest in technology (besides of course the mandatory security) server refresh & virtulization is very important to increase your computing capacity, no increase in energy consumption and cost savings at a time when you need it most.

Server Refresh is a proven method to drive innovation, stimulate growth & lower costs.  Up to 7x more performance, up to 80% less power/space, boost utilization an estimated 5x.

For your Small & Medium Business Refresh will provide a 2 year ROI by consolidating older servers.  1.  New hardware-warranty support 2.  Reduced cost of ownership (TCO) lower maintaince, power & downtime.  3.  Less space, less energy, less noise

Intel’s Processsor 5400 series has a 2 Year ROI replacing single core servers.  7x performance, 80% lower power, 80% smaller footprint