AMD May Benefit From Intel's Woes

The heat and speed problems associated with Intel's latest line of processors, which forced the company to change its product strategy and adopt a dual-core processor structure, may help rival Advanced Micro Devices gain market share, said system builders last week at CMP Media's XChange Tech Builder event.

However, AMD must improve end-user marketing efforts surrounding its cutting-edge 64-bit processors and continue to build closer relationships with channel partners, system builders said.

"Intel has had to backtrack, and AMD has been hot on their trail trying to find an opening. This could be the opening," said Chaim Lowenstein, COO and CTO of Web Commerce, a system builder in New York. "Intel could be in for a rude awakening if AMD can get on the bandwagon with its marketing and channel programs."

Although AMD launched its first channel program last October and has been working to build relationships with system builders, Lowenstein said companywide layoffs have made it difficult for him to access AMD's programs and channel benefits.

Gary Bixler, AMD's group division manager for system builder channels, North America, said the company will continue to improve its partner programs. "We've made tremendous progress," he said. "We've put a renewed emphasis on the channel, and that commitment is not going to stop."Dan Wensley, director of global channels at Net Integration Technologies, a developer of Linux-based server systems in Markham, Ontario, said AMD's renewed channel focus has been paying off. "AMD's done a great job at developing relationships," he said. "It will only be a matter of time before they take on [customer] mass."

Shirley Turner, Intel's director of North America channel marketing, said one of Intel's strengths is that its research and development team can work quickly with the company's fabrication plans to "ascertain and correct" any technology problems.

"Sometimes we have to cut our losses and move ahead," she said. "Our focus isn't on the competition, it's on the customer."