Tuesday, September 11, 2012

Advanced Micro Devices (NYSE:AMD) Soared As it Releases New-Gen Low Power Microservers

Advanced Micro Devices, Inc. (NYSE:AMD) started selling its first low power servers based on Intel chips after possessing SeaMicro for $334 million in February. The venture was AMD’s first ever into energy-efficient microservers based on low-end Intel Atom processors instead of high-end Intel Xeon server chips.

In Spring, it came as no surprise that AMD would still be selling SeaMicro’s microservers along with Intel Chips. However, in present times, AMD’s SeaMicro division has launched its all new SeaMicro Sm15000 server that runs with Intel’s E3-1260L processor. In November, AMD is slated to start shipping new machines with new generation of AMD Operton processors. To put it in other words, AMD is try to accommodate SeaMicro’s existing customers by shipping any processor they want, even if that means business to Intel.

SeaMicro’s power-efficient computers make it easy for enterprises to accommodate more computing power into a specific amount of space and use mush less amount of electrical power. Result is, low electricity bill, which amounts as the largest cost of running a data centre. With the help of Intel Atom processor, SeaMicro has become the fastest-growing company in Silicon Valley history before AMD purchased it. SeaMicro’s clients include bigwigs like Skype, Rogers Wireless, eHarmony, France Telecom and Mozilla.

Intel has been improving its server microprocessors by making them more energy-efficient. However, the microprocessor only accounts for one third of the power consumption in a server. SeaMicro’s innovation is in the fact how it triggers the remaining two-thirds of the power consumption problem. It does so by putting together a lot of extraneous chips into a single and more-efficient custom chip. With the help of low-power cores, SeaMicro can now accommodate thousands of cores and 5 petabytes of storage space into a single microserver.

The new SeaMicro SM15000 server can fit 512 cores in a ten-rack system.

Shares of AMD soared 8.07% to $3.75 on Tuesday.

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