AMD wants 10% of the server market by mid 2020

AMD wants 10% of the server market by mid 2020

Speaking at the UBS Global Tech Conference, the senior vice president of world marketing for AMD, Ruth Cotter, claimed that the goal in the server sector is to reach a 10% share by the second quarter of 2020.

“Our first generation of EPYC CPU was called Naples and this August we presented the second generation, codenamed Rome. Today we are at a share of about 7% if we look at the total addressable market according to IDC equal to about 20 million units. The goal is to return over time to the peak level which was 26%. But first we have to have the credibility to reach such an ambitious goal, we have to reach double figures. Therefore, our goal is to reach 10% by the second quarter of 2020“.

According to the latest findings from Mercury Research, another analysis company, AMD has gone from 1.6% in Q3 2018 to 4.3% in Q3 2019 in the server market. The figure is lower than that reported by AMD, as the company bases its estimates on the forecasts of IDC, which takes into account only the single and dual-socket markets, eliminating the four-socket servers and beyond, the network infrastructures and edge solutions such as those represented by the Xeon D .

Also according to Mercury Research, AMD achieved an 18% share in the desktop and 14.7% in the mobile sector in the third quarter. Speaking of the maximum server share of 26%, the AMD executive recalls the glories of Opteron processors, which in particular between 2004 and 2006 collected great success. From 2006 onwards, there was a steady decline, due to Intel's competition and some wrong projects, until it left the sector and returned in 2017.

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AMD has made several agreements in the server sector in recent months: Dell Technologies, Nokia, IBM, TSMC, ATOS and OVH, without forgetting customers such as Microsoft, Google, Twitter, Lenovo, HPE, Cray and VMWare. The EPYC Rome CPUs have maintained compatibility with previous motherboards for Naples (for those who do not need PCIe 4.0) and significantly increased performance.

For the future AMD already has a well-defined lineup with the EPYC Milan CPUs (Zen 3) over the next year (the latest rumors here) and the EPYC Genoa solutions (Zen 4) in 2021. We will see if AMD will manage to achieve its short-term goal, but the possibilities are concrete , so much so that in recent weeks some analysts have hypothesized a share of more than 10% by the end of the year.

The mind runs to the words of June 2018 of former Intel CEO Brian Krzanich, who said that it was Intel's job to prevent AMD from acquiring a 15-20% market share. However, we do not know how the current CEO Bob Swan thinks, who in recent days has however talked about his “battle” to change the overall view of Intel, which he says is too concentrated in protecting the share in the CPU market and not so ready to seize the opportunities of the “silicon market” as a whole.

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