AMD in 2005: Coming out of Intel's Shadow
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Case Details:
Case Code : BSTA001
Case Length : 16 Pages
Period : 1990s to 2005
Organization : AMD (Advanced Micro Devices); Intel
Pub Date : 2005
Teaching Note :Not Available
Countries : Global
Industry : Semiconductors
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Opteron
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Designed to run existing 32-bit applications and offer customers a smooth transition to 64-bit computing, Opteron promised a dramatic improvement in performance. It also reduced the total cost of ownership (TCO) . Opteron came in three versions: the 100 series (1-way), the 200 series (1 to 2-way), and the 800 series (up to 8-way).
AMD had positioned Opteron as a microprocessor with a scalable architecture designed to meet current and future business needs. Opteron was designed to scale from one to eight processors. This aided system designers by reducing the cost and complexity of building servers and workstations. It also reduced cost and increased server scalability...
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David vs Goliath
For more than 30 years, AMD had been challenging Intel in the semiconductor industry. Intel had been able to control x86 microprocessor and PC system standards and dictate the type of products the market required of competitors. Intel's financial muscle allowed it to market its products aggressively, offer special incentives and to wean away customers who did business with AMD...
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New Optimism
AMD believed that Opteron's USP was not requiring any software upgrades when moving from 32-bit to 64-bit architectures. This feature would make Opteron much more user-friendly than its rival Itanium, which required users to re-write existing 32-bit software code during migration.
By 2004, Opteron was receiving favorable reviews from manufacturers. The company grabbed 7% of the low-end server market, up from almost nothing a few years back. It accounted for 50% of the US retail store sales for desktop PCs in August 2004... |
Excerpts Contd...>>
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