AMD to end rivalry with Intel? | Features | ChannelWorld.in

PARTNER HOTLINES

AMD to end rivalry with Intel?

By Sharon Gaudin, Computerworld on Dec 13, 2011

After years of going up against Intel and not fairing so well, AMD is no longer going to focus on its long-standing rival. While AMD says isn't giving up on the x86 market, it's not going to move forward with Intel in its sights. Analysts say it's about time that AMD breaks free from being seen as forever the bridesmaid.

We're at an inflection point,” AMD spokesman Michael Silverman said in an interview with the San Jose Mercury News. “We will all need to let go of the old 'AMD versus Intel' mind-set, because it won't be about that anymore.”

In an email to Computerworld, Silverman wrote that the company is rethinking its course. “Any time a company is more focused on its competitor than what the market wants and needs, it is probably not in a good place for long-term growth” wrote Silverman. “Our CEO Rory Read is driving a shift internally to think beyond the typical and outdated AMD/Intel mindset.

“At the end, we aren't focused on keeping pace with Intel, we are focused on keeping pace with consumers and the market,” he said. “That is how we are going to win.”

Silverman said AMD executives will offer information on restructuring plans during the company's scheduled Financial Analyst Day on Feb. 2. AMD first talked of restructuring early in November when it announced it was laying off 1,400 workers, or 10% of its workforce.

With Read now leading the company, it's no surprise that AMD is looking at changes in its focus, said Charles King, principal analyst with Pund-IT Inc.

“The company's new CEO understands that following the old line will more or less permanently lock AMD into an also-ran position against Intel," said King. “I believe the company is hoping and trying to be break-out and be judged on its own terms.”

He also noted that the company's competition with Intel has largely defined AMD - something the company needs to change.

"In the desktop/laptop space, they've mostly been considered the lower priced spread to Intel's sweet creamery butter," said King. "At this point, the best way to change the game may be to shift the rules. It isn't the easiest path, but it's a reasonable strategy given the circumstances."

However, breaking free of that rivalry may be harder than just saying it's over.

“AMD and Intel are and will remain rivals, despite what AMD is saying right now,” said Dan Olds, an analyst with The Gabriel Consulting Group. "The difference is that AMD seems to be publicly bowing to the reality that AMD will likely never beat Intel in the traditional processor market."

And AMD isn't even really on Intel's radar these days, according to Jim McGregor, an analyst with In-Stat. “Unfortunately, it really doesn't matter right now because Intel is focused on ARM.AMD really doesn't matter to Intel at this point in time,” he said.

McGregor, though, said AMD has long needed to focus on its own brand and destiny. “AMD is facing some serious challenges in manufacturing, product positioning and now organizational structure,”he added. “So, this is going to be a challenging period for the company.”

The biggest concern facing AMD could be ARM-fueled systems, something the company needs to handle head-on, said Olds.“They need to look at ways to combine their assets, like CPUs and graphics technology, to address markets that range from tablets to enterprise servers,” he added. “They should be exploring ARM chips to couple low-power, low-cost chips with their graphics processors to build better consumer and enterprise computing platforms.”


Latest Features

EDITOR'S PICK

Forecast 2015: IT Spending On An Upswing

As purse strings loosen up, CIOs blend innovation into 2015 IT budgets, but security and cost containment remain top priorities.

‘Security Compliance is Not a Proactive Phenomenon in India’

Pavan Duggal, Cyber Law Expert at the Supreme Court of India, explains why channel partners need to look beyond the IT Act 2000 as the security standards, given today’s fast-changing threat landscape, rapidly evolve.

IT is Indispensable for Business Optimization: David Aires, Intel

David L. Aires, VP, Information Technology Group, and GM, Information Technology Operations, believes security to be the biggest challenge in the current IT environment.

Is the CIO Role Nearing Extinction?

New technologies are shifting power to the hands of the user, endangering the CIO role. But do Indian CIOs consider that a threat or an opportunity? 

The Authentication Market is Big Play for Channels: Gaurav Chawla, Gemalto

We are building a partner network to address the increased demand for authentication solutions across India, says Gaurav Chawla, Director, IAM, Gemalto India.

Versatile Infosecurity: Riding the Security Wave

It takes vision and persistence to stay on top of the security curve. Versatile Infosecurity has mastered that art.

How Futurenet Technologies Helped Sterlite Copper Adopt Next-gen Client Computing

Sterlite Copper was able to successfully adopt next-gen client computing facilities with hand-in-hand assistance from Chennai-based Futurenet Technologies.

DigitalTrack Solutions: Right on the Security Track

DigitalTrack is keeping pace with the changes in the IT security space through DDoS and WAF solutions and is pushing security audits as part of its next move.

SLIDESHOWS

6 Leaders Who Headed for an Abrupt Exit

The abrupt exit of top leaders of Indian and global tech companies this year, with many of them citing ambiguous reasons, surprised the technology world.

Gartner Executive Summary Survey 2014

Gartner's Annual CIO Survey highlights the trends that will drive organizational IT spend in 2014.

10 Overhyped Tech Products That Crashed and Burned

The demos blew everyone away. Then reality hit.

Gartner Executive Summary Survey 2014

Gartner's Annual CIO Survey highlights the trends that will drive organizational IT spend in 2014.

ChannelWorld Survey: State of the Market 2014

Partners poll their sentiments, expectations, pain points, and challenges for the coming year.

FAST TRACK

Mudra Electronics

A vendor-agnostic strategy helped us sustain business, says Bharat Shetty, CMD, Mudra Electronics.

Systematix Technologies

Our USP is a customer-friendly approach backed by services, says Akhilesh Khandelwal, Director, Systematix Technologies.

CorporateServe Solutions

Our ability to turnaround complex ERP projects in record time is what gets us customer referral, says Vinay Vohra, Founder & CEO, CorporateServe Solutions.

KernelSphere Technologies

We are emerging as an end-to-end systems integrator, says Vinod Kumar, MD, KernelSphere Technologies.

Uniware Systems

We constantly validate emerging technologies for first-mover advantage, says Vergis K.R., CEO, Uniware Systems.

Astek Networking & Solutions

An innovative approach helps us stay successful, says Ashish Agarwal, CEO, Astek Networking & Solutions.

CSM Technologies

Our approach is backed by innovation and simplicity, says Priyadarshi Nanu Pany, CEO, CSM Technologies.

ETSC Computers

We want to be recognized as a complete solution provider, says Kailash Gupta, Director, ETSC Computers.

VIDEOS

Arun Parameswaran on VMware’s Cloud, Mobile, SDx Strategy

Arun Parameswaran, MD, VMware India, talks about transformation, strategy, roadmap, and VMware’s role in driving the shift to cloud, mobile, and SDx.

Parag Arora, Citrix: Our Portfolio Will Augment Our Strategy

Parag Arora, Area Vice President, Citrix India, elaborates on his action plan for the company after taking over operations in India.

Shibu Paul, Array Networks: ADN is a Great Business Opportunity for Channels

Shibu Paul elaborates on how Array Networks is empowering its partner ecosystem to address the modern datacenter challenges in India.

Scott Robertson, WatchGuard: We are an End-to-End Security Solutions Company

Scott Robertson of WatchGuard elaborates on the company’s partner roadmap in India and its subsequent shift in the security space.

Gaurav Ahluwalia, R&M: Channels Will Accelerate Our Datacenter Business

Gaurav Ahluwalia of R&M speaks on the company’s renewed focus to build its channel ecosystem and address the datacenter demands of India Inc.

Venkat Murthy, 22by7 Solutions: Real Value is in Solutions

Venkat Murthy, Prime Mover, 22by7 Solutions, elaborates on the need to look at a solutions approach rather than a mere hardware approach.

What Channel Partners Can Learn from a Sahara Adventurer

Steve Donahue, a desert adventurer and a best-selling author, takes experiences from this travels in the Sahara and turns them into lessons for channel partners, as they navigate the shifting sands of today's business and IT environment.

Rahul Agarwal, Lenovo: Profitability and Value Proposition are Vital

Rahul Agarwal, executive director, Commercial Business Segment, Lenovo India, talks about Lenovo’s renewed channel strategy and why the company is now an attractive proposition for its partners.

EMC PARTNER SHOWCASE

Partnering for Profitability

Atul H. Gosar, Director, Network Techlab, shares how the company’s association with EMC has provided it with a competitive edge and a wide customer base, leading to increased profitability.

Sponsored Content

Promising Pipeline

Venkat Murthy, Prime Mover, 22by7 Solutions, shares how EMC brings in competitive edge by enabling technology, GTM and lead generation, helping 22by7 acquire new customers and retain old ones.

Sponsored Content

Powerful Performance

Deepak Jadhav, Director, VDA Infosolutions, says initiatives by EMC around training and certification have helped the company’s staff improve its performance and enhance customer experience.

Sponsored Content

Performance Booster

Rajiv Kumar, CEO, Proactive Data Systems, says that the solution provider’s association with EMC has helped expand its customer base and added value to existing offerings.

Sponsored Content

Pursuit of Profitability

Santosh Agrawal, CEO, Esconet Technologies, shares insights on how the systems integrator’s association with EMC has spelled sustained success over the years.

Sponsored Content

Non-Performance is Not an Option

Nitin Aggarwal, Director, Trifin Technologies, shares insights on how the association with EMC has helped the system integrator stand out and empowered its personnel to deliver consistent performance.

Sponsored Content

STRATEGIC DIRECTIONS 2014

Driving IT to Make an Impact: IDC

IT is being increasingly viewed as something which would help drive revenue rather than just another cost line-item.

Software-Defined Infrastructure: Forrester

Firms must invest in transforming infrastructure to eradicate complex infrastructure to keep pace with business needs.

Better Safe Than Sorry: PwC

Organizations should create a culture of security that starts with commitment of top executives and cascades to all employees and third parties.

New Skills for a New Era: Gartner

A new talent strategy is required—one that is a key part of the evolving IT strategy and one that focuses on a blend of business and modern IT skills.

The Rise and Growth of Big Data: Ernst & Young

Leading organizations are reaping rich rewards on their investment in big data even as competition struggles to keep pace.

SOCIAL MEDIA @ CW India
SIGNUP FOR OUR NEWSLETTER

Signup for our newsletter and get regular updates.