Dell has announced that it will use Opteron processors from AMD in its high-end servers by the end of the year.
Up until now, Dell had refused to commit to AMD and had steadfastly planned its hardware around Intel’s chip solutions.
For the time being, Dell will continue to sell its PCs equipped with Intel chips, but the server move is designed to squeeze the best chip deals from both Intel and AMD. News of the change came as Dell posted a reduction in net profits for its first quarter.
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After cutting prices on its PCs in an attempt to regain market share from competitors such as HP, Dell posted a $762m (£448m) profit for the first three months of the year.
This compared to the $934m profit it made for the same quarter last year. The fall had been expected after an earlier profits warning issued by Dell.
Dell announced during its results that it would ship servers equipped with AMD chips. Dell said that by the end of the year, it will offer enterprise servers equipped with either Intel's new Woodcrest chips or AMD's Opteron processors.
Sun Microsystems already sells enterprise servers equipped with AMD chips.