It's been a rough road for the Intel Xeon since AMD introduced the Opteron. AMD's market share is climbing, and in a complete role reversal of years gone by, AMD is reported to have 81.5% of the US retail PC market with Intel sitting at 18.5%. In the server space (lower volume, higher profit) AMD is now sitting at over 14%, up 5% from 2004. There is no question that the fight is fierce between the two processor giants: recently AMD hired one of Intel's high ranking Itanium designers.
While the past few years haven't been Intel's best, it certainly doesn't mean that the future will carry on that trend. Intel's next generation products are in development, and on paper look quite promising. Performance per Watt is a key focus for Intel and is something the industry is in dire need of. As we alluded to in a previous article, power consumption is on everyone's mind. Opteron is not only the most scalable enterprise processor today, but it's also the most efficient. With a dual socket Opteron system using up to 40% less power than Intel's current Bensley systems, there is a lot of room for improvement.
While it seems like AMD can sit back, relax and enjoy the growth curve, that wouldn't be a wise move. Intel is not going to take this for much longer - they can't. It's clear Intel is banking heavily on the last two quarters of the year, and the next generation products have to perform and win back mind and market share. Woodcrest and Kentsfield are no secret, and if they live up to expectations, the tables could turn. Intel is already competitive with Opteron performance in dual processor configurations with the soon to be released Bensley platform. With a reduction in power consumption Q4 of 2006 will be interesting to say the least.