Dell is launching a desktop for its business customers powered by an Advanced Micro Devices (AMD) processor, marking another step in AMD's effort to diversify its gains in the server market.
Dell's OptiPlex 740 will offer users the choice of an Athlon 64 or Athlon 64 X2 AMD processor, replacing the Intel Pentium used in the last generation machine, the OptiPlex 620. Dell also offers a similar product, the OptiPlex 745, with Intel's new "Conroe" Core 2 Duo chip.
This move is important for AMD, which has relied on its growing success in the server market to compete with Intel in recent months. AMD has seen its greatest gains in the server market, where its share more than doubled to 25 percent of x86-based servers in the second quarter of 2006, according to Mercury Research.
Dell began selling its first AMD-based servers in October, including the PowerEdge 6950 and SC1435 models. On 7 November Gateway followed suit, announcing it would use AMD's Opteron chip in three new rack-mounted servers, the E-9422R, E-9522R and E-9722.
Despite these wins in the server segment, AMD must also win market share in the desktop and notebook segments to become an equal competitor with Intel. The company has notched wins in the last 12 months by gaining acceptance from Lenovo Group and Hewlett-Packard on desktops for corporate customers.