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Strategic changes and new products like the Opteron, however, have transformed AMD from a company too often known for gaffes and financial losses into a major supplier of processors. Intel, meanwhile, has tripped over itself several times during the past three years.
Intel is now in a position to reverse its mistakes with a new line of chips. AMD's Chief Technology Officer Phil Hester, however, says that the smaller competitor isn't resting on its laurels. It continues to improve its chips and, with the acquisition of ATI, will release integrated chips for notebooks and other devices.
Will it be enough to keep a reinvigorated Intel at bay? That will be one of the big topics of discussion at the Intel Developer Forum next week in San Francisco. Hester, who worked at IBM for 23 years, says AMD is ready. He recently sat down with CNET News.com to share some of his views.
Q: It's kind of an interesting twist that AMD is doing "platformization"--that is, offering reference designs and more than one part to PC makers--because for years, the idea was to concentrate on processors and let your partners make chipsets.
Phil Hester: A lot of it is driven by what the OEMs (original equipment manufacturers) have asked us to do. It started off actually in the mobile space. Last year, for the first time, we did a reference design in the notebook space.
The OEMs would like us to do more of the validation and certification work. Each of them still wants their own unique packaging in the notebook space, but kind of a core design, if you will, that's been validated. So we work with two or three wireless vendors, a couple of graphics vendors, and then make sure that we pick selected elements from that.
But they don't like the Intel approach of saying, "You can only do this one, this one and this one." They want us to be able to say, OK, we validated with these--let's say, three wireless chipset vendors and these two graphics vendors.
How come you didn't do it five years ago?
Hester: This really came a lot out of what we call the commercial stable image platform business. In the commercial marketplace, they want a more rugged, robust platform than on the consumer side of things. And it really grew out of some of our success in the commercial side, which was driven by Opteron. Before that, to be honest, we were not taken seriously in the commercial side.
AMD has always wanted to get into the enterprise with notebooks and desktops. Why has it been tougher than it was with Opteron?
Hester: It's a work in progress. I think you've seen some major OEM announcements about going into the commercial space, and there are others in the works. Watch this space. It's clearly a focus for us, but it's an area where historically we were not stronger.
Are there any OEMs waiting in the wings with AMD PCs for the Fortune 500 crowd?
Hester: I think there are a couple that would be recognized worldwide, tier-1 names that have products under development. I can't obviously be too specific, you know, there are at least two that are well-known names that would have products.
The history of AMD and Intel is interesting. For a long time, AMD was the company that could do no right, and Intel would always be breathing down your neck when AMD stumbled. Why is it no longer the case?
Hester: I think several things. There's been a lot of learning inside of AMD, both at the technical level and also at the management level. (CEO) Hector Ruiz did a good job of reinvigorating the executive team at AMD and got it to be a more predictable company that the tier-1 (computer makers) can trust as a strategic partner.
The other half, of course, was that we have the product from the technical team. The Opteron got us in the door. You can show a slide where you say why you're going to be a great company, but until you've actually got a real product, people are always going to be suspicious.
Are you going to do platformization for commercial desktops?
Hester: Yes, we expect to.
With a variety of different chipset partners or with your new friend ATI?
Phil Hester: Same platform choices as before. We have no intent of trying to exclude anybody. Obviously the relationship with ATI will be much stronger, but we would have no intent of locking anybody out if they wanted to provide solutions to our platforms.
Are you guys talking to Apple Computer?
Hester: We have.
Has it shown any interest?
Hester: I'd say interest, not necessarily any decisions.
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I see them moving towards the lucrative corporate server business and away from consumer products where they have a loyal fanbase.
The world is now dominated by PC and Mac Intel products which is just right what we need. 4 and 8 core is unnecessary, maybe in another 10 years when software and apps can play catch up
AMD, I am currently disappointed in your performance.
Instead, they probably need to shore up their mobile processor designs to match Intel on the power consumption front. Laptops are where the PC wars of the coming decades will be fought, as we are already seeing desktop variants of laptops ("home-use"/"non-portable" category).
Plus, with convergence set to become a reality finally in the next 5 yrs, power consumption will become very critical even for home-use systems!
Hester: We have.
Has it shown any interest?
Hester: I'd say interest, not necessarily any decisions.?
Now, the last time AMD talked to Apple was about 1.5 years ago. We haven?t heard from them ever since. So what is this Phil Hester talking about? At Apple we are baffled about his comments, and the only thing we can think of is that he?s spreading rumors before IDF ? the typical thing: stealing the thunder of another company. Is this guy a Chief Technology Officer or a bull **** artist?
As for CNETs questions, what do we think?. Enhancing unverified rumors clearly reveals a ludicrousness below Homer Simpson standard. We don?t care about them.
So, are these fabricated rumors true? Absolutely NOT. If Intel behaves like IBM, then we?ll reconsider AMD. Until than, AMD is permanently OUT OF THE PICTURE and we don?t care.
By the way, it?s very unwise for AMD cult to join the Apple cult. So don?t flatter yourself with gossip.
I am sure they must have had talks, and he honestly accepts that no decisions indeed. I just can't understand why people at Apple are furious upon this. If I believe you are correct then the matter would be raised by Mr. Jobs in a formal press release or something; not by Mr. domino360 in some unnoticed corner of the www.
I have still not forgotten the statements coming out of Dell before they finally decided to jump into the laps of AMD. However it was due to the fact that Dell's major products are computers and they just can't let themselves lag behind in the field. But Apple primarily being an online music (and other related products) company (as it has become now) can do well even while lagging in their part time products called computers.
depicted as a monoploy" . Look now. Also intel initally lagged behind in the multi-core products ( lagged behind Sun Micro systems which sell 8-core niagara servers, lagged behind AMD etc. ) area.