AMD Calls for Overthrow of Intel

In preparation for the next major technology upgrade, AMD Monday called on the IT community to reexamine its relationship with partners and customers and consider a “new, more collaborative and connected business model.”

At the ICT World Forum at CeBIT, CEO Hector Ruiz said technology companies need to promote shared success instead of relying on blind faith, specifically faith in AMD’s chief rival Intel .

While the long-awaited corporate PC replacement cycle is being stymied by the conflict with Iraq, AMD is predicting profitability by the end of 2003.

“Software and silicon have become the ‘plastic and steel’ of today’s economy,” Ruiz said at the conference in Hanover, Germany. “The information and communication technology industry is rapidly becoming the DNA of every industry — and changing the competitive dynamics of everything it touches. With this change comes great responsibility. We, as an industry, must move away from technology advances for the sake of technology advances. We must ground every aspect of our business in delivering true, customer-centric innovation through the migration to a connected business model.”

The comments came about a month before the Sunnyvale, Calif.-based semiconductor maker launches its 64-bit processors — Opteron and Athlon — which will vie for space in servers and other high-end computers around the globe. The processors are expected to begin shipping on April 22. Intel is scheduled to launch its Centrino wireless chipset for mobile devices this week in New York.

“It became very clear to AMD that if we are going to meet evolving user needs, we must free users from the limitations imposed by today’s 32-bit processors, but also allow them to take advantage of all the current investment and energy dedicated to today’s 32-bit processing platform,” said Ruiz.

Ruiz said the company is also preparing to announcing its OEM partners, confiding in Reuters that AMD is “working with all of the top five (computer makers),” referring to the preliminary testing and evaluation period.

“When we look for ways to restore the direction of our industry today, I don’t see any reason to look beyond an approach that keeps that focus on providing real innovation that people can use — customer-centric innovation delivered through a connected business model,” said Ruiz.

Meantime in Scottsdale, Arizona, AMD Chairman Jerry Saunders echoed Ruiz’s call for overthrowing Intel in the server market saying Hammer chips “let the customer — not the supplier — decide just which machines and how many people need 64-bit power.”

At his keynote at Semico Research’s annual industry summit, Sanders pointed to growth in PCs and cell phones but not as much in IT spending.

The former CEO of AMD also forecast his company would “recover to the level of 2000,” with revenue of about $204 billion, by 2004.

“This industry, on an ongoing basis, will see growth of three to four times GDP growth,” Sanders said.