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The Huge Premium Intel Is Charging for Skylake Xeons

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Re: The Huge Premium Intel Is Charging for Skylake Xeons

#3

Post by gigatexal »

In an interesting (to me at least) move intel instead of competing on price when AMD put out a competitive offering they decided to keep prices the same more or less or increase them by adding value. Faster AVX units, more cores, more SKUs (not sure about that last one). And while intel has margins to maintain AMD has put features into their chips for years. For example AES has been shipping in most every desktop and server CPU while only some intel ones get it. Most AMD chips can do VT-D etc while the same feature is relegated to higher end chips generally on intel.

Re: The Huge Premium Intel Is Charging for Skylake Xeons

#6

Post by simias »

gigatexal wrote: post #3

In an interesting (to me at least) move intel instead of competing on price when AMD put out a competitive offering they decided to keep prices the same more or less or increase them by adding value. Faster AVX units, more cores, more SKUs (not sure about that last one). And while intel has margins to maintain AMD has put features into their chips for years. For example AES has been shipping in most every desktop and…

I could be wrong but I assume that there's enough inertia in the high-end business-to-business side of things (the part that matters for high-end server processors) that they probably can keep milking that cow for a few years more.

People who have only been buying Intel CPU in the last decade won't jump ship immediately. Nobody gets fired for buying Intel CPUs, at least until very recently. You know you won't have compatibility issues etc...

Of course within the next few years Intel will have to react somehow, either by outperforming AMD significantly to justify the premium or by slashing prices.

Re: The Huge Premium Intel Is Charging for Skylake Xeons

#10

Post by stu2010 »

csdreamer7 wrote: post #8

With the concentration of server buying by AWS I am surprised Intel believes it can get away with this. AWS has the expertise and the incentive to push for supporting a competitor that offers a superior value.

I'd bet that the cloud-scale customers like AWS negotiate pricing that has very little to do with the published list price of these CPUs.
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