AMD President and CEO Hector Ruiz's Challenge to the Industry: Let's Get Real
Ending “technology for technology’s sake” and building better connections to customers and partners are keys to sustained growth
LAS VEGAS --
In a keynote address to the information technology industry at COMDEX Tuesday, Hector Ruiz, AMD (NYSE: AMD) president and chief executive officer, asserted that all technology industries must refocus on delivering solutions that are truly driven by customers and their unique needs.
“All of us here today must make a choice,” said Ruiz. “We can continue to do business the old way, or we can choose a new direction to move the technology industry as a whole forward. I urge you to demand that those companies who are currently serving you today begin developing technology not for its own sake. Not in isolation from the real world. But in line with what you are really trying to do.”
To illustrate the value of AMD’s customer centric approach, Ruiz was joined by partners Epic Games, Gibson Guitar Company, IBM, George Lucas’ JAK Films and NVIDIA®, along with customers Cray Super Computing, China Basic Education and Northeast Utilities. Executives from each of the companies joined Ruiz in demonstrating how close collaboration with AMD has increased their revenue opportunities by maximizing the relevancy of their products for end-users.
Live demonstrations during the event included 64-bit versions of Epic Games Unreal Tournament 2003 and IBM DB2 software — software that is available today — running on AMD’s future 64-bit microprocessors, illustrating the benefits of 64-bit computing for today’s real-world applications.
Unreal Tournament was demonstrated running on a 64-bit AMD Athlon™ microprocessor, with audience members seeing the power this upcoming processor is expected to bring to consumer-focused applications. IBM DB2 was demonstrated running on a 64-bit AMD Opteron™ microprocessor, showing the dramatic performance increase this upcoming processor is expected to bring to enterprise-class computing environments.
An Industry in Transformation
Ruiz’s presentation further outlined AMD’s strategic focus in light of today’s manufacturing economics.
With the average transistor costing approximately one-millionth of a penny, and approximately 100 million transistors now fitting on the upcoming AMD Opteron microprocessor, semiconductor strategies can no longer be defined solely by making transistors smaller and cheaper. According to Ruiz, the primary value proposition now rests with the customer.
The shift to a customer-focused value proposition is driven by a growing majority of consumer products that are now mini-computers dependent on software and silicon to define their usefulness, such as the latest cell phones, personal digital assistants (PDAs), digital television and automotive telematic systems.
Further, the growing importance on connectivity is accelerating the movement towards a new, “connected business model” in which success is determined by the number and quality of partnership relationships. Ruiz argued that Metcalfe’s Law — which says the overall value of a network increases exponentially as devices are added to it — is the new rule of engagement that will set the standard for excellence in the industry in coming years.
“In my view, Metcalfe's Law will set the standard for excellence in our industry and for our customers in the years to come” said Ruiz.
AMD is a global supplier of integrated circuits for the personal and networked computer and communications markets with manufacturing facilities in the United States, Europe, Japan, and Asia. AMD, a Fortune 500 and Standard & Poor’s 500 company, produces microprocessors, Flash memory devices, and support circuitry for communications and networking applications. Founded in 1969 and based in Sunnyvale, California, AMD had revenues of $3.9 billion in 2001. (NYSE: AMD).
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