Chip designer and chief Intel rival AMD has signed an agreement to acquire SeaMicro, a Silicon Valley startup that seeks to save power and space by building servers from hundreds of low-power processors.
It was bound to happen eventually, I guess. SeaMicro has been acquired by AMD. We’ll see what happens as a result as SeaMicro is a customer of Intel’s Atom chips and now most recently Xeon server chips as well. I have no idea where this is going or what AMD intends to do, but hopefully this won’t scare off any current or near future customers.
SeaMicro’s competitive advantage has been and will continue to be the development work they performed on that custom ASIC chip they use in all their systems. That bit of intellectual property was in essence the reason AMD decided to acquire SeaMicro and hopefully let it gain an engineering advantage for systems it might put out on the market in the future for large scale Data Centers.
While this is all pretty cool technology, I think that SeaMicro’s best move was to design its ASIC so that it could take virtually any common CPU. In fact, SeaMicro’s last big announcement introduced its SM10000-EX option, which uses low-power, quad-core Xeon processors to more than double compute performance while still keeping the high density, low-power characteristics of its siblings.
So there you have it Wired and The Register are reporting the whole transaction pretty positively. Looks on the surface to be a win for AMD as it can design new server products and get them to market quickly using the SeaMicro ASIC as a key ingredient. SeaMicro can still service it’s current customers and eventually allow AMD to up sell or upgrade as needed to keep the ball rolling. And with AMD’s Fusion architecture marrying GPUs with CPU cores who knows what cool new servers might be possible? But as usual the nay-sayers the spreaders of Fear, Uncertainty and Doubt have questioned the value of SeaMicro and their original product he SM-10000.
Diane Bryant, the general manager of Intel’s data center and connected systems group at a press conference for the launch of new Xeon processors had this to say, ““We looked at the fabric and we told them thereafter that we weren’t even interested in the fabric,” when asked about SeaMicro’s attempt to interest Intel in buying out the company. To Intel there’s nothing special enough in the SeaMicro to warrant buying the company. Furthermore Bryant told Wired.com:
“…Intel has its own fabric plans. It just isn’t ready to talk about them yet. “We believe we have a compelling solution; we believe we have a great road map,” she said. “We just didn’t feel that the solution that SeaMicro was offering was superior.”
This is a move straight out of Microsoft’s marketing department circa 1992 where they would pre-announce a product that never shipped was barely developed beyond a prototype stage. If Intel is really working on this as a new product offering you would have seen an announcement by now, rather than a vague, tangential reference that appears more like a parting shot than a strategic direction. So I will be watching intently in the coming months and years if needed to see what if any Intel ‘fabric technology’ makes its way from the research lab, to the development lab and to final product shipping. However don’t be surprised if this is Intel attempting to undermine AMD’s choice to purchase SeaMicro. Likewise, Forbes.com later reported from a representative from SeaMicro that their company had not tried to encourage Intel to acquire SeaMicro. It is anyone’s guess who is really correct and being 100% honest in their recollections. However I am still betting on SeaMicro’s long term strategy of pursuing low power, ultra dense, massively parallel servers. It is an idea whose time has come.
- Intel Says AMD’s New Baby Is Ugly (wired.com)
- SeaMicro Investor, Intel Trade Barbs Following AMD Acquisition (forbes.com)
- With SeaMicro buy, AMD doubles down on servers (gigaom.com)