A New Way to Buy PCs


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Someone on this blog once commented that AMD is “out-marketed” by our competitor.  I believe they meant to write that we are “out-spent”.  Regardless, it is a challenge to be a CMO competing against a monopolist. The right thing to do is not out-spend them, but instead to be smart about getting close to the customer and their needs.

Sometimes, that means doing the complete opposite of the conventional approach. And today, we believe it’s time for some unconventional thinking.

The truth is that little has changed in the way x86 processors are marketed since AMD introduced 64 bits and multi-core processors. Even then the marketing, while it was new and creative, was another way of saying, “faster, better and more.”  It didn’t fundamentally change the way the industry talked about its products.

And today, in the mobile or notebook world the key issue for consumer is not the processor (or even the speed of the processor), but rather the combination of parts – or the “platform” as we call it – that make up the machine. There are of course customers who still want the processor which has the fastest “0-60 mph” speed, but we believe most mainstream consumers are more interested in how they are going to use the system, not necessarily how fast it is.

One of the reasons for this disconnect is that the “0-60 mph” speed metrics are derived through benchmarks like SysMark07. I have used this blog to talk about how a benchmark like MM07 on its own does not reflect typical battery usage (i.e. they don’t tell the “whole story”), and SysMark07 has the same limitation with workloads.  I will leave it to other people to detail why this benchmark is inadequate for most users, but I will point out that the software the benchmark uses has virtually nothing to do with videos, music or helping your manage your photos. Also, it doesn’t run Windows 7.

The Consumer PC Buying Experience Today

For the typical consumer considering a notebook purchase, the first question is typically a usage question, maybe followed by a size and weight consideration. In testing we did, not once did the shopper ask for a processor brand as primary consideration. What mainstream consumers want is machines on which to do office work, to watch movies, to listen to music, to edit their photos and even edit their videos.

While processor speed has an effect on how quickly some of these types of workloads can be done, other parts of the platform – elements like the graphics cards, the size of the screen and the reality of how long the battery will really last – can be just as important.

If we are going to help the consumer get the right machine for them, we really need to market to them in a way that makes sense. We started that a few months ago by beginning an industry conversation around battery life. Today we want to take that to the next level.

A New VISION

Today we introduce a whole new way to help consumers buy the right machine for their needs. Today AMD is introducing a new approach in retail we call VISION Technology from AMD.

Other  blogs will give you all the details about what this represents in terms of the brand and the technology – the platform. In particular, check out Pat Moorhead’s blog on our new ultrathin mainstream notebook platform  or Ian McNaughton’s blog on how Microsoft Windows 7 and DirectX 11 are also going to enhance users’ computing experiences. And for a simple guide you can check this website www.amd.com/whichvision.

In its simplest form we are connecting the needs of the consumer to the PC – not the processor. When you go into a retail store this holiday you will see VISION Basic, VISION Premium and VISION Ultimate on many PCs powered by AMD technology – not the name of our processor. Straightforward guides for retailers and consumers will help them know which VISION is right for them.

  • VISION – Basic is for people who use productivity tools like Microsoft® Office and who surf the web, maybe listen to music and look at their photos
  • VISION – Premium is for those who also want to watch High-definition and Blu-rays, edit photos and play some games
  • VISION – Ultimate is for the video editor and 3D game player

We are also going to enable a VISION – Black edition for our technology partners who build the high-end, top of the line systems.

There is a lot more to VISION than I can capture in one blog – I am sure I will be doing others.

Just in case you were worrying, VISION Technology from AMD will extend to desktops early next year and your retailers will be able to tell you what parts went into your VISION system (it will be on the fact tags).

In the end it is about getting you the right machine for your needs because it’s about making your vision a reality.

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 Pat Brown - September 10th, 2009 at 09:36

    Seems to me that this Vision approach is less a new way to buy PCs than it is an acknowledgement of how consumers actually do it in the real world. For once, a manufacturer is going to speak the consumers language instead of trying to force the consumer to speak theirs. Imagine that…

  2. #2 by Nate Supplee - September 10th, 2009 at 11:16

    This is a very interesting approach to the problem of connecting with the average user. People like me (tech enthusiest, gamers, etc…) will probably still be looking for a spec sheet on your products (though I never buy PCs from ‘big box’ stores). But, the average joe doesn’t really care how many Ghz each CPU is. All they care is if it will work for what they need it to do.

  3. #3 by Martin - September 10th, 2009 at 15:01

    I think it is better to the uses open platform approach like before in 2005.

  4. #4 by Martin - September 10th, 2009 at 15:02

    I think it is better to uses the open platform approach like before in 2005.

  5. #5 by David - September 10th, 2009 at 16:38

    Vision Technology is a good marketing strategy by selling total packages/solutions, not just CPUs. CPU family names have been getting too complicated to track them for most of general PC users.

    Three classes are good too, but Basic can be replcaed by a better name, e.g. Value. I am afraid that Basic implies nothing good to talk about or worth mentioning! Honda used to have DX (no air condition and …), LX and SE, and now LX, EX and EX-L. Even the least expensive DX stands for Deluxe, not Basic, and is the entry-level model for people who want to have a performance car but have a limited budget. Even the entry-level model needs to have the quality to stand out and compete, like Honda DX about 20 years ago. It can’t be neglected for being the least expensive one. PC used to be a nice-to-have in 80’s but now is a must-have and have more than one each family and even each person, just like cars. Selling PCs are now like selling cars, and simplifying the decision making for customer is good!

    A market leader’s strenth could be its weakness. We can learn from how Burger King can grow and compete with the well establised Mc Donald from day one.

  6. #6 by David - September 10th, 2009 at 16:45

    Forgot my question I want to ask. What are the means AMD will use to communicate and educate customers about this new decision making for buying? Just putting out static ads may not be enough. Execution and how to execute is even more important than a good idea.

    • #7 by Nigel Dessau - September 14th, 2009 at 15:26

      You’ll find it in lots of places but this is mainly a Point Of Sale set of activities. There’s where the consumer meets the product in retail. Clearly that implies the websites for e-tailers.

  7. #8 by David - September 10th, 2009 at 17:24

    For example, in major retal stores, have a side-by-side setup for A-B comparison with same class of CPUs from AMD and Intel and about the same system price to show and tell what AMD offers is better in total system solutions.

  8. #9 by David - September 11th, 2009 at 17:47

    I am glad that the VISION site shows VISION (instead of VISION – Basic), VISION – Premium, and VISON – Ultimate.

  9. #10 by David - September 11th, 2009 at 20:00

    Do system suppliers label their system with the some kinds of stickers and labeling for helping customers to identify and select, e.g. Powered by AMD VISION, Powered by AMD VISION-Premium, and Powered by AMD VISION-Ultimate? Customers need to have a quick and easy way to identify which system is what without spending time to sort them out.

  10. #11 by Steve Golab - September 11th, 2009 at 21:18

    I am very excited to see how the VISION is executed. The model makes it really easy for me to decide what is the best computer for me, and I am sure others will feel the same way. Great timing too with the holiday season still months away.

    By the way, congratulations on the growth of AMD share value over the past 9 months. I hope you can keep this pace up for many years ahead.

  11. #12 by asH - September 12th, 2009 at 09:00

    The ‘Vision” logo speaks volumes; that being said, David is right. In the past AMD’s competition defined the AMD brand. It is very important, if ‘Vision’ is to speak for itself, that quality parts are used to clearly brand the logo in an ultra positive light, it is that much more important during the embryonic stage.

  12. #13 by Clarance - September 12th, 2009 at 21:53

    This re-branding sounds too much like vista ( Basic, Premium, Ultimate ). Now that just sucks. Thats the best names that you could have come up with. Are you guys really serious?

  13. #14 by w - September 12th, 2009 at 23:19

    The dot com burst was a mere foreshadowing of this mushroom cloud “Vision.” It will be a challenge to status quo for sure. The ad industry may be excited but it doesn’t realize that it’s been made redundant and disintermediated. On some level it thinks that the cloud will take us back to the days of oneway modal media systems that will nicely rehabituate people. I see the opposite of that occuring but out of the disruption we may get a fresh chance to build community.

    My take on where AMDs vision leads us in the short term:

    A service that contains very close to the sum total of Humanity’s content and makes it instantly available all the time everywhere for a low monthly

    flat rate fee. (games; movies; music; books; textbooks..)

    All of this content will be available through any web browser, phones and through living room screens.

    Hundreds of millions of people will use this service and services like it, eventually billions.

    The service will include efficient search like that found in IBM’s Watson and Wolfram’s Alpha.

    There will never be any ads.

    There will never be any sponsorship.

    There will never be any premium nonsense.

    There will never be any fake news.

    There will never be any pop ups or modal windows.

    There will never be any attempt to control what users can look at.

    It will be as easy to post new content as it is to browse.

    The tools to post new content will be free, content will develop on the host from the start.

    It will always be free to post.

    There will be no attaching of IP for new content nor rules keeping the content on the service or preventing it from being posted to other services.

    Payment to a poster will occur after a their piece of content gets some threshold level of interest and it will be based on the actual amount of time end users focus on the content the cost of hosting will be deducted from the payment.

    Many ISPs will bundle the service into their ISP fee and the service and others like it will offer their own ISPs as part of the flat fee.

    By definition the majority of content will be end user generated as most content generators will be end users or become end users.

    New content including new movies, new games, new music will post to the service prior to any other format- prior to theaters etc.

    These services will rid society of the ad/sponsorship/publishing/media/newspaper/TV/Radio industries, while spanning the digital divide and providing a lot more income for actual content creators.

    Service interfaces will make use of speech, speech recognition and motion.

    Cloud gaming (Game streaming especially of the OTOY sort) will kick start these content exchanges and the complete transition will take less than 5 years.

  14. #15 by Synonymous - September 13th, 2009 at 21:24

    Sounds pretty good for less than technically minded people who want to stay up to date. Vision will translate to GPU systems really well I think. For the “Basic” package, I think a better name would have been “Essential”, purely for marketing reasons.

    • #16 by Nigel Dessau - September 14th, 2009 at 15:29

      Good point – it really doesn’t say BASIC on the lable – it just says VISION – it’s our basic or base offer.

  15. #17 by asH - September 17th, 2009 at 08:34

    evaluate and innovate-
    while watching my DirecTV football package, I thought to myself; wow if only I could connect my DTV satellite box to my computer and use EyeFinity technology to watch 6 different games on my 6 different monitors, instead of watching 10 games squeezed up into one 42″ HD screen…that would be cool …the possibilities are endless

  16. #18 by asH - September 17th, 2009 at 08:39

    would viewing six video signals with EyeFinity validate a quad/sixcore cpu

  17. #19 by Annie ( Residential ) Wagner - October 7th, 2009 at 04:51

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    It’s taken me literally 3 hours and 40 minutes of searching the web to find blogs.amd.com (joke) ;)
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