EU Decision and the Secret Sauce in Innovation


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I’m still coming to terms with today’s news from Brussels. Wow.  I encourage you to read Nigel’s assessment which details how the fallout from Intel’s third straight conviction by government  watchdogs comes down to three issues: price, innovation and choice.  If you love technology and what it can do for people the way I do, perhaps the most exciting thing to emerge from yesterday’s ruling is the huge potential for a step change in the pace of innovation. Why?

I believe competition is the “secret sauce” that drives innovation. That’s true in any industry, and it’s also true in life. Would the U.S. have put a man on the moon if not for Sputnik? Maybe, but there’s no question that the Space Race and attending accelerated pace of innovationwas fueled by very high stakes competition between the US and the former Soviet Union.

Goliath with brass knuckles

At AMD we live to compete and innovate, and it starts by asking questions like “What will it take to deliver the next-generation computing experience?” And while innovation with impact is our calling card, it’s more than fair to say that AMD also loves a good fight. But hopefully the world now knows that we’ve fight an enormous opponent that rigs the game to ensure AMD can never fully win fair and square.

Like Nigel said, competition investigators have for a third time (Japan, Korea, European Union) collected evidence showing that especially when AMD opens commanding product leads on Intel and we take those innovations to the marketplace, Intel uses bribery and coercive tactics to block those innovations. Whole AMD customer segments and sales channels are effectively shutdown by Intel.That’s Don Corleone type stuff, folks. That’s David versus Goliath, with Goliath packing brass knuckles on one hand and a brick-filled sock in the other.

The AMD Critic: “AMD should innovate, not litigate”

I’ve heard the Intel apologists say: “AMD should innovate instead of litigate.” If you doubt we fear an innovation fight with Intel or that  we can truly compete with Intel, remember that we have proven that we can out-innovate or remain competitive against Intel, a company with about 10x the resources. We are champing at the bit to attack an open, competitive marketplace that is no longer artificially manipulated by Goliath.

You may be sitting there saying, “OK Pat – that’s your opinion, and a biased opinion at that!” Fair enough. If that was opinion, here are 10 facts that should do some of the talking for AMD in terms of theinnovation chops we have under our roof:

Fact #1

Billions of financial transactions are conducted quickly and efficiently every day by major stock exchanges around the world on AMD-based servers.

Fact #2

All 50 Million Wii gaming consoles shipped to date run on AMD technology (ATI Hollywood GPU).

Fact #3

7 of the 10 fastest supercomputers in the world are powered by AMD processors.

Fact #4

AMD processors were trusted to power crash safety test simulations for almost 2 million new cars that hit the road in the US in 2008.

Fact #5

Realistic special effects powered by AMD technology have helped Hollywood amass more than $5.4 billion in worldwide box office revenue.

Fact #6

AMD processors in the Top500 supercomputer list account for more than 4.029 petaflops of computing power (that’s more than four thousand trillion calculations per second).

Fact #7

50% of Internet DNS traffic is efficiently and quickly routed via AMD-powered servers.

Fact #8

Musicians and producers who have collectively won 70 Grammy awards currently rely on AMD technology for their cutting edge digital music production.

Fact #9

Every month nearly 23 million travelers find their ideal trip using online travel services powered by AMD-based hardware.

Fact #10

AMD graphics and slot machine are a winning combination.  More than 75% of new slot machines in Vegas use AMD graphics to power their visually stunning imagery, and more than half of those machines also use an AMD CPU.

So to borrow from our corporate philosophy, I’m more than happy to combine these facts with our employees’ passion for innovation. And I’ve never felt better about the future of innovation than I do today.  What do you think?

Pat Moorhead is Vice President of Advanced Marketing 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 linked sites and no endorsement is implied.

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  1. #1 by Daniel - May 13th, 2009 at 13:06

    Your blog is the best! It always gets better, just like AMD! ;)

    Fact #11: 28 million Xbox 360 consoles shiped to date run AMD technology (ATI Xenos GPU).

    The future of fusion is looking brighter than ever.

  2. #2 by John McElhenney - May 13th, 2009 at 13:17

    Patrick,

    A hearty congratulations to the entire AMD team! Holding in there and fighting the good fight.

    The Velvet Glove might be a better metaphor for the force with which a company like Intel can and does go for the throat of competitors. The good news is, Like Apple with Microsoft, AMD is still standing. And squaring up for the next fight of Agility and Innovation, not litigation and legal budgets.

    We all crave innovation these days. Netbooks, iPhones, MiFi bricks. AMD continues to amaze with the Fusion of the experience and the chip. Cause, sorry to say, nobody really (I mean really really) cares what “chip” is INSIDE if the computer or car or gaming console works brilliantly.

    Keep being brilliant!

    Congrats Again,
    @jmacofearth

    BTW: I’d never call you Pat.

  3. #3 by Cliff Forster - May 13th, 2009 at 13:33

    I for one, can say that the EU’s ruling is absolutely no surprise to me at all.

    Intel started to realize AMD was a dynamic company and threatening to their practical monopoly about ten years ago. AMD made a few successful marketing pushes starting with the original slot A Athlon, onto the Athlon XP, then to the very sucessful Athlon 64, AMD had gained market share, and more importantly recognition as a major player in chip innovation.

    Its funny today, you walk into a retail store where alot of Joe Consumer’s buying decisions are made, and you can’t seem to find nearly as much marketing material on AMD products as you do on Intel’s. This all makes me wonder why??

    I noticed in a BJ’s last week, that every AMD based laptop had a line card with minimal specs listed, but every Intel based one told you everything about the system, and these were not line cards produced by AMD or Intel, they were typed up from BJ’s system description. Makes one wonder why that is??

    How long before our homeland regulators figure out whats going on here?

    Kick Intel in the teeth while they are down. Do it for tech consumers who support a fair market.

    And if we support a fair market, we should be buying AMD if we are not already. To me, buying AMD is not merely a question of price vs. performance, its also a question of personal ethics.

  4. #4 by Surya Adi Nugraha S - May 13th, 2009 at 14:05

    AMD win, consumer win.

    But, I find your products that have been developing continuously only limited for microprocessor, core logic and add on graphics. Your network products did not developed and have been legacies. I still remember that AMD is first company with single chip NAS solutions (are you remember the single chip fast ethernet network card and SCSI solutions from AMD in mid 90’s) and the wireless chipset did not develop further when Hector Ruiz become CEO (remember AMD Alchemy Am1772 chispets). Jerry Sanders, your still the best CEO AMD of all time have been pushed networking products in the past for years. I hope AMD will innovate again in these market to bring the best all in one solutions for your consumers.

  5. #5 by Paul Konecny - May 13th, 2009 at 15:26

    Today I’m proud of being a citizen of the EU…I think you know why :)

    Time to wreck down some old sandy bridges with a bulldozer…
    (no bad puns intended here :) )

    Another question: Do you know / are you allowed to tell me when there will be a desktop version of the Istanbul-Opteron?

    Because I’m eager to buy myself one.

    Thank’s for the 40 great years and best wishes from Austria

    (I have posted this already in the 40th aniversay thread you can delete the pervious one)

  6. #6 by Jay Taylor - May 13th, 2009 at 17:30

    Hey Pat,

    I think AMD has a history of innovation going back years. It has been a while since I last looked at some of these things, so correct me if I am wrong, but as I recall, AMD was:

    1st to introduce the SIMD (3DNow!) instruction set.

    1st to break the 1Ghz barrier

    1st to migrate to DDR while the competition was pushing RIMM/Rambus technology. DDR now adopted by competition.

    1st to integrate the memory controller. Now being adopted by the competition.

    1st to introduce x86-64…now adopted by competition.

    1st to introduce native multi core technology to the desktop platform. Competitions first solution was MCM as I recall.

    1st to introduce Enhanced Virus Protection into the CPU core to prevent buffer overflow attacks.

    Introduced Powernow! and Cool n Quiet! technology for better power management.

    The list goes on and on, but a brief review of history shows how AMD consistently innovates their products, often which seems to be adopted by the competition.

    Regards,
    Jay

  7. #7 by Theo Valich - May 14th, 2009 at 02:25

    Hi Pat,

    I would also ad – majority of Internet traffic is being routed using AMD-invented technology: HyperTransport is used in Cisco switches…

    But when it comes to firsts, this is a pretty important part: AMD was first to 1GHz in both CPU and GPU fields: http://bit.ly/jVF85

  8. #8 by Rodney Schmidt - May 15th, 2009 at 10:10

    Fact #11 – Without AMD we’d all be reading this blog on our 1.5GHz Itanium desktop machines.

    • #9 by Theo Valich - May 15th, 2009 at 17:38

      @Rodney Schmidt,

      Sorry Rodney, but you are wrong. I still have Intel WW roadmaps from 1996 [don't ask ;) ], predicting 1GHz CPUs by the end of 2009.

      Yep, predictions were that 1GHz CPU for desktop will come to market anywhere between 2006 and 2009. And the CPU would not be Itanium, but rather a Pentium II processor.

      Luckily, we have competition that changed all that, all for the benefit of the consumer.

      Theo

  9. #10 by Sascha - May 17th, 2009 at 20:09

    Oh by the way, another little story and personal experience of Intels’ unfair tactics.

    During the IFA 2008 in Berlin i expected to see half a dozen systems with the new VIA Nano CPU. Of course you couldn’t find these systems on the booths of the manufacturers. When i asked them about it, they were showing me the systems behind closed doors. One manufacturer told me for sure, that they can’t show it because they didn’t want to screw up their relation with Intel!

    Ever wondered why there is no official press release from Samsung about the NC20 with the VIA Nano?

    http://www.samsung.com/us/news/search/newsSearch.do?searchWord=nc20&x=0&y=0

    it’s a crazy world we are living in ;)

  10. #11 by Sheep - June 6th, 2009 at 11:13

    Cool, I own AMD products for years and didn’t know the facts :D .

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