Tuesday, April 22, 2008

Intel is slashing processor prices, what will NetApp do?

Intel has slashed the prices of their processors, the question at hand is how will this affect new NetApp equipment. The current models of the FAS3000 series and FAS6000 series are using AMD processors, will NetApp switch to Intel now?

It is an interesting question, brought on by an article I saw today.

Intel has slashed prices of some of its processors by up to 50 percent in a move it claims is for clearing out 65 nanometer (nm) processors to make way for 45nm ones. Nevertheless, the price cut might prove fatal for rival AMD (Advanced Micro Devices), whose chips have been hitherto considered low-price alternatives in the chip market.

Will NetApp switch processor manufacturers now that they can get cheaper components from Intel? How will this change their product line up? They seem to have canceled the FAS3020 and FAS3050 which were Intel platforms for the 64 bit FAS3040 and FAS3070. What will be the longevity of these systems?

I certainly hope that AMD will do everything they can to hang in and continue to build their business and maintain competitive pressures on Intel. AMD makes a great products and we are certainly big fans of their technology and products. I hope that NetApp continues to keep AMD as their preferred vendor.

2 comments:

Anonymous said...

The couple-hundred-buck hit they would take on such a unit really digs into their $50k profit margin I bet!

Anonymous said...

NetApp still sells a few Intel processors in their active lineup. The FAS2020, the FAS2050, the FAS3020 and the 3 StoreVault systems are all still running on Intel chips.

NetApp prices are fixed just like the old Standard Oil days. It does not matter if the chip costs change, the price of the solution will not.