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Recent Events Shaping the US Software Industry

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Part 4
Recent Events Shaping the US Software Industry PART 4 OF 12

How Influential Are AMD’s Epyc Endorsers?

Epyc collects several endorsements

Advanced Micro Devices (AMD) immediately garnered several endorsements for its newly launched Epyc server chip, which it claims gas outperformed comparable data center chips from rival Intel (INTC) during comparison tests. Lenovo, Hewlett Packard Enterprise (HPE), Microsoft (MSFT), Baidu (BIDU), and Dell Technologies (DVMT) have pledged their support for the Epyc chip.

A number of these IT companies that have pledged support for AMD’s Epyc chip are influential data center vendors. Therefore, their endorsements for the Epyc chip may be important for AMD in its efforts to penetrate the data center chip market, which is dominated by Intel.

How Influential Are AMD’s Epyc Endorsers?

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Influential partners

Backers of AMD’s Epyc server chip are the world’s leading server systems vendors. According to research firm IDC, Hewlett Packard Enterprise, Dell Technologies (DVMT), and Lenovo made the list of the top-five server systems vendors in 1Q17. Combined, these three controlled more than 50% of the worldwide server systems market in terms of revenues.

The chart above shows how the top-five server systems vendors ranked on the basis of market share in 1Q17. Hewlett Packard Enterprise has a joint venture with New H3C Group, so their sales are combined.

AMD out to regain lost ground

AMD has touted its Epyc server chips as delivering higher performance than the competition. It has also claimed that despite Epyc’s superior performance, it is more affordable. The claim of Epyc’s affordability hints at AMD’s willingness to wage a pricing war with rivals in the data center processor market.

IDC estimates that AMD’s share of the server chip market was 0.4% in 2016, down sharply from about 10% in 2009.

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