It started with a single core


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On April 22 we celebrated the sixth anniversary of the AMD OpteronTM processor launch, the server processor that showed just how ripe for innovation the x86 server market was early this decade.  As we move closer to the launch of our six-core “Istanbul” processor in June, below is the first post of a multi-part blog that provides some perspective on the first year of AMD Opteron through the eyes of someone intimately involved in driving awareness for the processor since its launch.    

"Hammer" time

"Hammer" time

I started with the AMD PR team in October 2002, about 7 months before AMD Opteron, then code-named “SledgeHammer,” officially launched at the Hudson Theater in New York City on April 22, 2003. Things such as energy-efficiency, multi-core, performance-per-watt and cloud computing were not part of the discussion back then.

The bridge to 64-bit computing … and credibility

Our lead message then: TCO and ease of migration relative to the fact that we could offer 64-bit computing on an industry-standard architecture with backwards compatibility with existing 32-bit applications. It was a simple one for our audiences to appreciate considering our competitor was going the path of Itanium to get to 64-bit computing. How simple? Well, our tagline initially was “Simplifying Business” and the supporting points were all about investment protection, flexibility, performance and industry support. That last one is probably the most important one for me to expand on a bit further.

The biggest challenge for AMD in the server business in 2003 was credibility. Lots of IT guys loved our desktop processors but we didn’t have any real history in the enterprise. We had only been offering server processors since 2001 (AMD AthlonTM MP processor) and none of our system support for that processor was from tier one OEM customers.  In fact, in most of the pre-launch communications we did, our biggest credibility proof point was our relationship with Microsoft and other ISVs. Even though most of our early adopters would ultimately be Linux guys, Microsoft’s support provided credibility to a server solution that did not have tier one OEM support until the day of our launch.

The “bridge to 64-bit computing” image we frequently used in press meetings prior to the 2003 launch

The “bridge to 64-bit computing” image we frequently used in press meetings prior to the 2003 launch

All we need is one. Right?

From a PR perspective, the Bay Area press and analyst tour Kevin Knox, then AMD’s director of commercial business development, and I conducted in February 2003 included several meetings with a strikingly similar dialogue.  Nearly all recognized and agreed that the competition made the wrong move with its initial stab at addressing 64-bit computing,  but most could not accept the idea of AMD Opteron being successful until tier-one OEMs came on board.

More frustrating at that time was the fact that we were getting seed systems into end-user hands, but no high-profile end customers would go and talk about their positive experience with AMD. Many reporters indicated to us that getting a couple of CIOs to talk on our behalf would generate instant credibility, but unfortunately without tier-one support, their credibility could also be at risk by endorsing AMD Opteron.

When we did launch AMD Opteron, IBM joined us on stage in NYC (you can view the opening launch video here) and said they would be offering a 2 processor system targeted at the HPC market later that summer. While not exactly what we were hoping for, it was definitely a shot in the arm. We figured once one OEM came on board, others would follow suit. Unfortunately that was not the case. We immediately became seen as primarily a solution for HPC and research. No one felt we had the chops to do mission critical, because you couldn’t find AMD Opteron in a mainstream, enterprise-class server from Dell, HP, IBM or Sun. Also, one of our lead messages around 64-bit computing really wasn’t pulling through well because there just weren’t a lot of applications at that time that could take advantage of it.

Buzzkill

Still remains one of our favorites on the PR team

Still remains one of our favorites on the PR team

Here we were in the summer of 2003, just a few months removed from the launch and we’re approaching LinuxWorld, which was an emerging enterprise tradeshow at that time. We had no server market share to speak of, and a single OEM SKU that had yet to launch.

My challenges usually came when I would get blindsided by a reporter who had recently spoken to and OEM or system builder who said customers were not asking for AMD Opteron and while they had looked at it, they had no plans to support it. As a PR guy, I’m glad we had IBM as a proof point but that one was starting to wear thin and it kept feeling like we were waiting for the other shoe to drop with the press coverage.

COMING NEXT: The Sun also rises

Phil Hughes is a senior public relations manager 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 Danieljohnson - May 5th, 2009 at 04:54

    With Intel’s six core Nehalem architecture fast capturing the market, it was necessary for AMD to come up with something quickly. And finally came up with the release of Istanbul, the Opteron series from AMD features six cores and a faster HyperTransport interconnect

    So what does AMD have going for it right now with Istanbul:

    Istanbul provides the best value for customers who already own a Shanghai or Barcelona based server. In-socket replacement, very low downtime for upgrades and better performance with just a change of CPU.

    DDR2 memory – DDR2 memory is now priced very competitively against DDR3. This brings down the overall cost of the system. Istanbul will use DDR2 instead of the more costly DDR3 memory.

  2. #3 by Martin - May 5th, 2009 at 08:03

    Hello Hughes, sorry this comment is not related to your blog post. I’m glad that AMD is always care to their existing customers like giving discounts for purchases new microprocessor for server. If AMD will introduces new microprocessor with new socket and core logic, I want AMD will give a free motherboard for every purchase CPU to their existing customers if their customers want to upgrade their server. This is a new innovation customer care program.

  3. #4 by Theo Valich - May 5th, 2009 at 11:04

    RE:Danieljohnson – Intel Nehalem-EP is sexa-core? Since when? As far as I know, Nehalem-EP is a quad-core design, will be followed by a 32nm sexa-core refresh called Westmere and a native octo-core design.

    Going back to the launch, it Is interested that Phil didn’t touch pressures that Intel made on partners not to show up in New York. I was there and I remember seeing those e-mails that Chipzilla sent out to Taiwanese partners forcing a hand at them. I won’t name which companies were banned from appearing on the event, but the representatives were there and spoke interesting things.
    It was a given that AMD will succeed, since you already had sealed the deal with several HPC machines in well respected companies, such as Mercedes Benz part of then DaimlerChrysler and Ferrari S.p.A. All in given time, but AMD was on target with the architecture. AMD learned on DEC Alpha, Intel didn’t until recently. ;)

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