LONDON – On a conference call with analysts to discuss AMD's third quarter financial results the company's CEO Rory Read has outlined a change of business model that will see the company "building reusable IP blocks" to reduce development costs and improve speed of execution. Read said that AMD needed to accelerate a move away from reliance on its legacy personal computer market and to get involved in new form factors and applications which would show higher growth.
On the call Read and Lisa Su, senior vice president and general manager of the global business unit, stopped short of saying AMD would adopt ARM-designed microprocessor cores or use an ARM architecture license but referred to third-party IP as well as AMD's own IP.
However, both executives stressed the importance of third-party IP to
help AMD address markets away from the personal computer. Read said AMD
was re-aligning to address markets growing faster than the PC market,
such as servers and cloud data centers, and embedded applications in
communications, industrial and gaming.
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The executives said that to effect a return to profitability it was
necessary to take AMD's IP in graphics and other areas and re-apply it
to high growth markets including embedded, ow power clients and dense
Read said the company already has a number of design wins in embedded applications for its APUs, which combine its CPUs and graphics processing units. These wins would be revealed over the coming quarters and would help the company to achieve embedded sales at around 20 percent of AMD's total sales in the second half of 2013.
On the call Read asked Lisu Su, to add detail on the IP strategy: Su said: "Let me just add some color to that. I think we said from our strategy all along that we believe we want to build into the larger ecosystems in the industry. So we'll continue to build x86 products. But as we've announced before, we also have a partnership with ARM in the Trustzone and security area and we'll continue to look at how we incorporate more third-party IP over time to address some of these higher-growing markets. Su said product introductions based on such third-party intellectual property would probably come in 2014.
Please remember who the audience for the conference call was: financial analysts looking at AMD's numbers. We might consider reusable IP blocks old hat and an "of course that's what to do" notion, but will people who spend their day looking at balance sheets and P&L statements think that way?
I'll say. Everyone with an ounce of sense realizes that the IBM 360 is the only game in town, and tons of businesses have so much legacy 360 code that all this talk about the move to "personal computers" is total nonsense. I don't see sales of Z series chips slowing anytime soon.
Now, now, let's not ding EEtimes for reporting a story.
What I do not get is what the big deal is about developing, using and re-using IP blocks and why that is something AMD needed it's CEO to talk about. Don't most chip design companies do that even today? If this is something AMD just realized then I am not surprised they are in the mess they are in!
I see Lisa talking about forward looking plans 2014 etc.. Key issue is are they going to make until then?
I hope they have some chop shop plan for this car! They have hired Lisa & BCG for strategy. May be they ought stop dreaming about grand plans, and move on with core, sell off Graphics to some one who really cares about it. SeaMicro was another hair brain Acquisition for a company that is in a mess. May be they ought to sell Server to QCOM, and live off that money to build out on new TBD markets, On Mobile they are way too late, specially here there is plenty ARM based AP, also there are China based ARM APs in the market, and Intel as well. Seems to me either focus on server forget about rest, i.e. sell it off.
AMD should have gone this direction 10 (maybe 15) years ago - and used its microprocessor experience to have gotten out from under Intel's iAPX shadow - under which the company has labored for nearly two decades
Hopefully the emergence of non iAPX tablet and server markets gives them an opportunity
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