San Antonio, Texas – (The Hosting News) – November 15, 2005 – Rackspace Managed Hosting has revealed the results of a recent survey of Enterprise server
customers. The survey indicates that Intel may be losing some of its brand equity with corporate IT departments.
Most companies
are unwilling to pay a premium for an Intel server,
according to the survey. Sixty-five percent of survey
respondents answered that they are not prepared to pay a premium for
an Intel server and 25 percent indicated they would only pay up to 10
percent more for an Intel server.
Rackspace has almost 17,000 servers under management, and offers its
managed hosting customers the option of Dell Power Edge servers with
Intel processors or “white box” servers with AMD processors. Of the
survey respondents running Intel servers at Rackspace, nearly 56
percent indicated they would purchase a branded AMD server and 29
percent might purchase a branded AMD server.
The survey also found that enterprises are less concerned with
the specific processor technology used to power their applications
because they rely heavily on their managed service provider to
optimize the technology delivery. When asked to weigh in on
Rackspace’s x86 processor strategy, responses varied with 20 percent
and 11 percent preferring Intel and AMD respectively. However, the
largest consensus, at 43 percent, was that Rackspace’s x86 processor
strategy is not important to them so long as the company continues to
guarantee server uptime and a service level agreement.
Paul Froutan, Vice President of
Product Engineering, Rackspace Managed Hosting commneted on the findings, ”What this survey tells us is that there is a shift away from
brand-name cache and the associated costs because enterprises are
relying on their service providers to untangle the technology issues.
Hardware issues like power efficiency and processor technology are
less of a concern to the majority of our customers because we
guarantee to keep their configuration up and running regardless of
which hardware they select. It is our job as a
managed services provider to make the technology work for our
customers so they can focus on what they do best — building
value-added applications.”
  Additional survey findings included:
  –  More than 25 percent of survey respondents feel market
    pressure to use an Intel-based server.
  –  If all branded servers were priced the same, 48 percent of
    surveyed customers would choose an Intel server and only 28
    percent would purchase AMD.
  –  It is still unclear to the respondents whether AMD or Intel
    will ultimately be more successful in the server market.
    Nearly 47 percent of respondents are unsure of which company
    will win the server race in the long run, yet 42 percent
    believe the winner will be Intel.
The methodology for this research involved sending an email survey
via a third-party research tool, Clicktools, to 2,111 of Rackspace’s
customers. Of the customer pool that responded to the survey, 52
percent utilize Dell Power Edge servers with Intel processors at
Rackspace and 48 percent utilize “white box” servers with AMD
processors at Rackspace. More than 15 percent of survey recipients
responded to the questions.
Detailed information and the full survey
report can be found at:
target=_blank>http://www.rackspace.com/aboutus/surveys/RackspaceServerProcessorPerceptionsSurvey.pdf.
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