Thursday, August 31, 2006

AMD & ATI - attacking in the short term

There's a lot of discussion around why AMD bought ATI. Two things that seem to rise to the top are AMD's need to have platform capabilities to compete with Intel and integrating GPU and CPU onto the same sillicon. However, both these will not come to fruition quickly. Assuming a realistic timeframe for either of these to come alive will be 2008, I'm guessing AMD will begin to attack Intel's integrated graphics business. Intel is the #1 graphics vendor (I'm not debating quality of graphics here) and AMD now has an opportunity to slow this business. I believe they will do two things in 2007 - both are sales & marketing tactics:

1. Traditionally ATI and Nvidia have not promoted their low end graphics cards. This has allowed the graphics card market not to be commoditised the way the CPU has. I think AMD will now market ATI's low end graphics as a better quality solution just above IGP or perhaps even match the Intel graphics solution at the PC BOM cost.

2. They might adopt a sandwich strategy by bringing their integrated graphics below Intel's in price...or perhaps equal but offer better quality.

These two things can make things very difficult for Intel in 2007 as AMD gets ready for their bigger assault.

Let rationality and logic prevail

I've decided to start this blog as a forum to facilitate the intelligent conversation around the AMD and Intel contest in the marketplace that could be happening on Sharikou's blog but unfortunately keeps getting sidelined by Sharikou's blind fanatacism for AMD. This is a place to analyse and provide a truly intelligent POV. While it may be less fun than trying to get Sharikou to admit he's wrong, hopefully it will be more stimulating and thought provoking.

While I do not intend to moderate the blog heavily, I do intend to use moderation to ensure this doesn't degenerate into a circus. As the title suggests, I will permit rebuttals to some of Sharikou's outrageous and illogical conclusions.