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	<title>Business Blog &#187; Price</title>
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		<title>I Never Bought a Nanometer</title>
		<link>http://blogs.amd.com/work/2010/02/18/i-never-bought-a-nanometer/</link>
		<comments>http://blogs.amd.com/work/2010/02/18/i-never-bought-a-nanometer/#comments</comments>
		<pubDate>Thu, 18 Feb 2010 22:51:06 +0000</pubDate>
		<dc:creator>John Fruehe</dc:creator>
				<category><![CDATA[AMD Opteron]]></category>
		<category><![CDATA[Magny Cours]]></category>
		<category><![CDATA[nanometer]]></category>
		<category><![CDATA[Performance]]></category>
		<category><![CDATA[power]]></category>
		<category><![CDATA[Price]]></category>

		<guid isPermaLink="false">http://blogs.amd.com/work/?p=975</guid>
		<description><![CDATA[And neither have you.  Seriously. I bought my first processor in a PC back in 1987.  12MHz.  Yes, and that was considered “fast.”  Back then, I worried about 2 things: performance and price.  I could have splurged and bought the &#8230; <a href="http://blogs.amd.com/work/2010/02/18/i-never-bought-a-nanometer/">Continue reading</a>]]></description>
			<content:encoded><![CDATA[<p>And neither have you.  Seriously.</p>
<p>I bought my first processor in a PC back in 1987.  12MHz.  Yes, and that was considered “fast.”  Back then, I worried about 2 things: performance and price.  I could have splurged and bought the 16MHz processor, but 12MHz seemed like the best balance for me at the time.</p>
<p>23 years, and a lot less hair later, I’m in the same boat.  I don’t buy many processors these days, but the process really hasn’t changed.  Today in the IT world, there are not 2 variables, there are 3:<strong> <a href="http://blogs.amd.com/work/2010/02/10/putting-performance-into-perspective-%E2%80%93-benchmark-selector-tool-for-amd-opteron%E2%84%A2-processor-based-servers/">performance</a>, <a href="http://blogs.amd.com/work/2009/10/09/amd-opteron-processor-delivering-true-value-not-just-benchmarks/">price</a> </strong>and <strong><a href="http://blogs.amd.com/work/2010/02/11/building-a-power-efficient-hpc-system/">power</a></strong>.</p>
<p>Those of us in the cubes here get really excited about a lot of things.  When our propellers start spinning, we get all fired up about the features of the processors.  But in reality, when you commit your scarce budget dollars to new servers, what do you look at?  You look at performance, price and power.</p>
<p>How can I prove this?  A minority of our processor sales are the top bin processors.  These are the fastest, most expensive and most power hungry.  And most applications don’t need that kind of horsepower.</p>
<p>This is because the balance of price/performance/power tells you that a bit further down the stack is <a href="http://blogs.amd.com/work/2009/12/11/aiming-for-the-sweet-spot-in-2010-and-beyond/">your sweet spot</a>.  I’ve talked to the folks who do buy those top speed processors. They run trading applications where a half second can be thousands of dollars in profit.  But for the majority of workloads, everyone wants to look elsewhere in order to maximize their budget.  We understand this, and at times, it feels like only we understand this.</p>
<p>When you look at our existing AMD Opteron™ processors as well as our upcoming new products (the 8- and 12-core processors codenamed “Magny-Cours”), you see two big themes: we don’t compromise on features and we are going to deliver the feature customers care most about:  value.</p>
<p>As you look at our products, you’ll see that as you move down the stack, from those fastest processors that everyone lusts after (but few buy) down to the value-priced processors, you’ll see the same set of features.  You won’t see AMD artificially limiting the capabilities or punishing a focus on low power.  Scaling back the features for marketing purposes is really not a very appetizing prospect for us. We believe that you should have the full set of features, no matter where you buy in the stack.</p>
<p>You won’t see us scale back the memory speeds. You won’t see us scale back the I/O speeds. You won’t see us pull features.  That is not our way to bring products to market.</p>
<p>You will see our processors vary in price based on core count and clock speed.  Beyond that, if you see a feature, like our <a href="http://www.amd.com/us/products/technologies/virtualization/Pages/virtualization.aspx">AMD-Virtualization™</a> (AMD-V™) technology features or our AMD-P power features, expect them across the whole stack. You won’t see us pull a feature that you count on, and you <em>really</em> won’t see us pull features that could impact software images across different servers. Can every processor company in the x86 server business claim this?</p>
<p>At AMD, we believe you should buy the capacity you need at the price that makes sense &#8211; and get everything you paid for – no surprises. That is our commitment to you, so make sure your next processor isn’t artificially limited.</p>
<p>Yeah, that nanometer thing; let’s talk about what you really want.  There are a lot of technologies being tossed around these days.  Nanometers, High-K metal gates, immersion lithography.  They sound pretty high tech.  They are and they’re cool, but they don’t impact what you really care about:  <strong><em>that holy trinity of processor value criteria: performance, price and power.</em></strong></p>
<p>It’s funny to think that some talk about manufacturing processes driving down costs, but when you compare price stacks, you see an amazing similarity over the years.  Where are those savings going? Fact is, manufacturing process improvements do help drive down costs – for the manufacturer.  We think cost savings belong in your pocket, and you’ll see why soon enough.</p>
<p>Let’s not go down the path of saying “technology X will lead to lower power.”  Plug in the server and decide for yourself.  Don’t think that something is going to lead to lower prices, instead, take a look at the bill. That is the best way to know for sure.</p>
<p>It may seem odd to have a marketing guy tell you not to fall for marketing, but at the end of the day, you’re going to buy the best product that meets your criteria.  And for the majority of applications, those criteria are price, performance and power.</p>
<p>Based on that, I am pretty confident that the best choice is going to be the new AMD Opteron™ 6000 Series processors because we designed them with you in mind.</p>
<p><em><strong><a href="http://blogs.amd.com/work/files/2010/02/john-fruehe1.jpg"><img class="alignleft size-full wp-image-976" src="http://blogs.amd.com/work/files/2010/02/john-fruehe1.jpg" alt="" width="130" height="166" /></a>John Fruehe is the Director of Product Marketing for Server/Workstation products at AMD. </strong></em><em>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.</em></p>
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		<title>You Can’t Make a Cake with Just Flour… Why Performance Benchmarks Alone Don’t Work</title>
		<link>http://blogs.amd.com/work/2008/08/04/performance-benchmarks-dont-work/</link>
		<comments>http://blogs.amd.com/work/2008/08/04/performance-benchmarks-dont-work/#comments</comments>
		<pubDate>Mon, 04 Aug 2008 09:54:00 +0000</pubDate>
		<dc:creator>Kent Knox</dc:creator>
				<category><![CDATA[AMD Opteron]]></category>
		<category><![CDATA[Benchmark]]></category>
		<category><![CDATA[Price]]></category>
		<category><![CDATA[Virtualization]]></category>

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		<description><![CDATA[Seems like everywhere I turn people are talking about IT best practices. But what about worst practices? After all, most of us were taught that you need to learn from your mistakes. So let me take a second to share &#8230; <a href="http://blogs.amd.com/work/2008/08/04/performance-benchmarks-dont-work/">Continue reading</a>]]></description>
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<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana">Seems like everywhere I turn people are talking about IT best practices. But what about worst practices? After all, most of us were taught that you need to learn from your mistakes. So let me take a second to share some real-life worst practices with respect to server selection and inappropriate use of <a title="http://en.wikipedia.org/wiki/Benchmark_%28computing%29" href="http://en.wikipedia.org/wiki/Benchmark_(computing)">performance benchmarks</a> to get you thinking: </span></p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana"></span> </p>
<p class="MsoNormal" style="margin:0in 0in 0pt 0.5in"><i><span style="font-size:10pt;font-family:verdana">One HPC end customer once told me that he knew his application would not perform as well on one particular configuration as another, but achieving a specific benchmark score and having a higher ranking on the <a title="http://www.top500.org/" href="http://www.top500.org/">Top 500 list</a> than their chief competition was what was driving their decision</span></i></p>
<p class="MsoNormal" style="margin:0in 0in 0pt 0.5in"><i><span style="font-size:10pt;font-family:verdana"></span></i> </p>
<p class="MsoNormal" style="margin:0in 0in 0pt 0.5in"><i><span style="font-size:10pt;font-family:verdana">A large server cluster was purchased based on performance benchmarks and the theoretical performance it could achieve. After spending months in product and vendor selection, procurement, acquisition, assembly, the user found that the datacenter didn’t have enough power to run the servers and the system had to be replaced by lower power servers with an alternate chip architecture (can you guess what the alternate was?)</span></i></p>
<p class="MsoNormal" style="margin:0in 0in 0pt 0.5in"><i><span style="font-size:10pt;font-family:verdana"></span></i> </p>
<p class="MsoNormal" style="margin:0in 0in 0pt 0.5in"><i><span style="font-size:10pt;font-family:verdana"><a title="http://money.cnn.com/magazines/fortune/fortune500/" href="http://money.cnn.com/magazines/fortune/fortune500/">A Fortune 500 company</a> reported that they were seeing almost a 10x performance difference between 2 systems they were testing using home grown benchmarks. Sensing something didn’t seem right; we took a look at the benchmark code and discovered that the dataset being used fit entirely in the L2 cache of one of the systems. After minimally increasing the dataset size, the results changed very quickly and very dramatically in favor of the other system.  </span></i></p>
<p class="MsoNormal" style="margin:0in 0in 0pt 0.5in"><i><span style="font-size:10pt;font-family:verdana"></span></i> </p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana">Pretty ugly stuff if you ask me. Now this is not to suggest that benchmarks are unimportant to consider when selecting hardware. They are, but as a sole selection criteria, they may very well lead you astray. The terms benchmarks” and “performance” are not synonyms and are not interchangeable. With the advent of things like server virtualization, the growing importance of power and energy, and the quest for ever better application scalability, the “one size fits all” benchmark approach to server selection no longer works when looking for optimal performance. Consider the following perspective on performance: </span></p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana"></span> </p>
<ul style="margin-top:0in" type="disc">
<li class="MsoNormal"><b><span style="font-size:10pt;font-family:verdana">Virtualization </span></b><span style="font-size:10pt;font-family:verdana">= the amount of performance I can get out of a single physical piece of hardware via virtualization software. Better utilization. Let me elaborate a bit more here as I know this is the hot topic for everyone today. End-users must not only look at how fast their virtual sessions can run, but also how many virtual sessions can run efficiently on a single server.
<p></span></li>
<li class="MsoNormal"><b><span style="font-size:10pt;font-family:verdana">Power and Energy</span></b><span style="font-size:10pt;font-family:verdana"> = The amount of performance I can get out of a piece of hardware per a given amount of power. <a title="http://www.amd.com/power" href="http://www.amd.com/power">Performance Per Watt</a>.
<p></span></li>
<li class="MsoNormal"><b><span style="font-size:10pt;font-family:verdana">Scalability</span></b><span style="font-size:10pt;font-family:verdana"> = The amount of performance I can get out of an application by <a title="http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543_15434~126379,00.html" href="http://www.amd.com/us-en/Corporate/VirtualPressRoom/0,,51_104_543_15434~126379,00.html">adding additional processors or cores to the available compute resources.</a>
<p></span></li>
<li class="MsoNormal"><b><span style="font-size:10pt;font-family:verdana">Benchmarks</span></b><span style="font-size:10pt;font-family:verdana"> = The amount of performance generated for a specific set of routines and/or application modules. Benchmarking your own applications is always best.
<p></span></li>
<li class="MsoNormal"><b><span style="font-size:10pt;font-family:verdana">Price</span></b><span style="font-size:10pt;font-family:verdana"> = The amount of performance for a fixed amount of money. Or sometimes people use a fixed amount of performance for the best price. Price/Performance.</span><span style="font-size:10pt;font-family:calibri"> </span><span style="font-size:10pt;font-family:verdana"></span></li>
</ul>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana"></span> </p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana">So what does all of this mean? Simply put, performance is not what it used to be. </span></p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana"></span> </p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana">By looking differently at performance across a set of relevant vectors, IT decision-makers can significantly improve server selection and better map to specific application and business requirements. My hope is that this comes across as somewhat of a wakeup call and light bulbs are going off as you read this. In the coming weeks, AMD plans to release a number of documents on this topic and to provide metrics and frameworks for helping create server selection models which look beyond just performance as a benchmark result. </span></p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana"></span> </p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana">I know some of you might suggest that I’m just trying to detract attention from our benchmark scores. Fact of the matter is <a title="http://www.amd.com/opteronperformance" href="http://www.amd.com/opteronperformance">AMD wins more benchmarks today than we have in years</a>, so this is far from a self-serving, but hopefully it’s self motivating for you and keeps you from being a worst practices example.</span></p>
<p class="MsoNormal" style="margin:0in 0in 0pt"><span style="font-size:10pt;font-family:verdana"></span> </p>
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<td valign="top" width="622"><b><i>Kevin Knox is Vice President of Worldwide Commercial Business at AMD</i></b><i>.  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.</i></td>
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