AMD 334 million dollar acquisition of small server vendors Seamicro

March 1 News, according to foreign media reports, AMD plans to use 334 million U.S. dollars to buy Silicon Valley start-up Enterprise Seamicro, in order to gain a foothold in the small Low-power computer server market. With the expansion of Internet services and businesses seeking to conserve electricity, small servers are an area with enhanced potential.

This is the first big acquisition Courville (Rory P. Read) has made since AMD's CEO. The target for this acquisition is the market for micro-servers. In this market, light and power-saving computer servers are used to host network services, including multimedia transmissions.

AMD wants to sell such servers to corporate partners such as HP, Dell and IBM. Compared to the typical servers in the large server farms currently maintained by the enterprise, the power consumption of Seamicro servers is only One-fourth of those servers, with an area of only one-sixth.

John Fruehe, director of AMD Server product marketing, said: "Small-footprint Zhongfuri confirm the product that the cloud market expects." "The rapid application of cloud computing will drive global server demand."

Seamicro just last month launched its first server with AMD rival Intel chips. This kind of server will be listed for sale. It is unclear how AMD's acquisition will affect the relationship between Seamicro and Intel.

The deal is expected to be completed within 30 days. The acquisition will not change AMD's 2012 revenue forecasts, but the acquisition will contribute to AMD's revenue since 2012.

(Responsible editor: The good of the Legacy)