Costing tax payers in the hundred millions of dollars, is the premium worth the cost? AMD says no
Government bodies are starting to
become more strict about buying specific brands of computer equipment
-- notably Intel-specific hardware. Recently, there has been much
talk about software coding with specific features for one processor
and limiting something else for a different processor. Skype was on
the front page
for giving more features to users who used Intel processors than
those who were using AMD processors. AMD itself has been handing
out subpoenas to companies that it believes to be unfairly
favoring Intel.
Now, AMD says that some government bodies are
buying Intel-specific products for big price premiums but
technically, the products offer identical or less features and
performance. AMD says that being brand-specific costs more tax
payers' money. In fact, AMD
says that a whopping $563 million could have been saved in
taxpayer dollars, had the government been brand-neutral in its
purchases. AMD's press release claims:
Governments around the world have recognized
the problem of closed procurement in the IT sector and the Argentine,
Austrian, Belgian, Canadian, Finnish, French, German, Irish, Italian,
Japanese, Swedish, U.K., and U.S. governments have all issued
guidance calling for neutral specifications and the elimination of
brand names in contracts. The European Commission noted in a 2004
study that application of its new procurement rules has reduced
prices by approximately 30 percent.
Some analysts say
that if AMD was more competitive, it wouldn't need to be raising
these issues. Others disagree, and say that companies with a market
dominance similar to Intel, use their considerable size and resources
to "buy" customers. Interestingly, AMD's market share has
grown significantly in the past year while Intel's has dropped. Both
companies performance in the stock market also reflect the change in
market share.
"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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