“All that is necessary for evil to triumph is for good men to do nothing.”


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Edmund Burke’s quote that is the title of this blog came to mind yesterday as I found myself thinking about and comparing my marketing career of ten years ago relative to today. 

Back then I was part of the team that launched the IBM e-Servers z Series – the 64 bit mainframe from Big Blue. In those years, IBM adhered to the consent decree that had been agreed to with the U.S. government.  To me personally what that decree meant, in marketing terms, was this:  don’t use your size, scale or market position to bully, belittle or unfairly lock out your competition. 

For much of the late 90s I sat close to and worked closely with IBM attorneys, and I think we did a pretty good job of adhering to those rules. Others may disagree, but I know we made it our plan to work within and respect those guidelines.

Ten years later the shoe is on the other foot.

Today I work for a company that has a relatively small share of the market, while one much bigger player maintains a monopoly (yes, I use that word deliberately and carefully). Recently translated documents from the Korea Federal Trade Commission indicate that our competitor does not share the ethical or legal view that guided my work of ten years ago. This blog, however, is not about that – I will leave our legal team to make that case.

Rather, what I want to do here is emphasize two key, related points: first, that competition is fundamentally good for the industry; and second, that competition should not be unfairly – or illegally – squashed simply to protect market share.

There is currently a lot of noise in our industry about how falling microprocessor prices show that competition is working.  Yet, price may not be the only thing to think of.  Here are some more:

-          Without competition the only 64 bit instruction set might be Itanium and not X86-64.

-          Without competition its likely Nehalem would not exist since its architecture is fundamentally a copy of the AMD64 (x86 64-bit) instruction set that is the heart of the AMD Opteron™ processor (as well as our entire line of 64-bit microprocessors).

-          Without competition between NVIDIA and ATI, Intel would probably not be investing in graphics and we would never have heard of Larrabee.

-          Without competition from ARM and the likes, Intel may never have introduced the Atom chip

I could go on but you get the point – competition is productive and beneficial in many ways.

Moreover, our civil antitrust case against our competitor is just one example that has brought to light how, in countries in which competition has been blocked, consumers face less choice and less price flexibility: the essence of monopolistic behavior.

Someone asked me this week if it was worth the money to fight this legal case. I think the Burke quote, which I chose as the title of this blog, is your answer. Companies, no matter how large, need to operate responsibly in markets around the world – something the government of Korea is only the most recent to conclude after reviewing the evidence taken from our competitor and its own customers. 

I believe in competition and I believe in our fight to bring balance back to the market.  What do you think?

 

Nigel Dessau is senior vice president and chief marketing officer at AMD. His postings are his own opinions and may not represent AMD’s positions, strategies or opinions. Links to third party sites are provided for convenience and unless explicitly stated, AMD is not responsible for the contents of such links sites and no endorsement is implied.

 

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  1. #1 by Cliff Forster - March 16th, 2009 at 10:13

    Nigel,

    Another thoughtful post. Looking at the home consumer market, we have only had real competition in the processor marketplace since the innovation that was the original AMD Athlon slot cpu’s. Those microprocessors were an amazing step forward at the time that is has since spurred the competition that we see in chip manufacturing that all consumers benefit from for that past several years.

    It does not take a degree in economics or marketing to understand that competition in any market is ultimately good for the consumer. As you have noted, it spurs innovation, as well as improves price.

    I build systems with AMD components exclusively. I feel like I have a responsibility as a consumer, and as a technology advisor to reward AMD for the innovation and value that they have provided the market with.

    Without AMD, I fear we would still be paying $1000+ a chip for parts that lack the innovation we see today.

    Its going to take the will of the technology consumers to demand that Intel discontinue this bully tactic. Continue to use your outreach, communicate with your customers, your vendors. Promote your ideals to a new user base, one that continues to be hungry for innovation and high value.

    My message to my fellow tech consumers is this. A chip market with a weaker AMD, is simply a weaker market. Lets strengthen the markets position together. AMD smarter choice.

  2. #2 by Bryan Bartow - March 16th, 2009 at 19:35

    Fair competition is good for everyone. Fight the good fight. I say that not because I’m a fan of AMD, but because I’m a fan of free-market economies, which cease without competition.

  3. #3 by Nedjo - March 18th, 2009 at 14:10

    Great blog… as expected.

    I would only add another quote from unknown author:

    “If you don’t do it for your self no one will do it for you”!

    That’s unfortunate truth! Any monopoly behavior essentially hurt the country and society it self, so it’s really tragic that one small company is bound to fight for the benefit of the society as a whole!

  4. #4 by Jeana - March 19th, 2009 at 09:41

    Excellent Blog!!!!
    Competition is vitial to fair a equitiable growth, as a marketing professional I see an enormous amout of “Me Too” practices, some many say that coping your ideas is the highest form of flattery, I call that unorginal competition. However unorginal it may be it is necessary to create innovation. Without this practice you are correct that one without the other would not exisit

  5. #5 by Anil Harwani - August 14th, 2009 at 03:04

    Hey Nigel ,
    Nice points made i am from India and here 99% of the population thinks AMD doesnt exist and always buy intel and get less value for money , but still i love amd for the value i get for every RUPEE i pay so thanks once again for ur efforts and i hope the balance returns once BULLDOZER comes out !!!

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