The AMD Execution Thread [2007 - 2017]

AMD chose to use the desktop as the platform to show the strength of Kaveri against Intel. How much will Kaveri cost? Whatever that amount is (+$50 premium for new gen hardware), they should have built a comparable Intel/Nvidia system. So if Kaveri costs $250 you build a $300 Intel/Nvidia system to use as comparison...thus showing the "value" of the new Kaveri.

You know the tech press is going to be critical of an i7/gimped GPU comparison and will build their own system as I did above. If they find AMD showed a GPU bottle-necked comparison...as they did...it begs the question...why? To inflate the Kaveri advantage? To invent a Kaveri advantage? To confuse and obfuscate away from something?

AMD needs to make bullet proof execution decisions right now and not let the marketing guys screw this up. The 290 cooler and retail board fiasco is still too fresh to risk another "look what the tech press caught AMD doing" again. I am an idiot tech wise compared to you guys, so if I am way off please tell me...

 

http://images.techhive.com/images/article/2013/11/amd_kaveri_specs-100068009-large.png

"AMD executives also announced the performance of the Kaveri—856 gigaflops. A diagram displayed by AMD appears to show two “Steamroller” CPU cores and eight Radeon graphics cores. AMD executives did not formerly disclose how fast the chips would run, nor how much they would cost. But a footnote on a presentation slide appears to show the Kaveri’s product name (the AMD A10-7850K) with a note that that figure assumes four 3.7GHz CPU cores, as well as 512 GPUs running at 720MHz."

 

I think "layoffs" is too general a term and often misused. I would argue that AMD is at a crossroads right now in the direction of their business and the products they wish to offer in the future. Here is why I think this rumor is more about articulating and executing a strategic restructuring rather than a "the ship is sinking let's do layoffs to save money" sky is falling scenario:

1. AMD began to exit the traditional x86 market in 2006 when they began to sell their fabs. They did so simply because Intel was able to out muscle them in R & D, CapEx, and as a consequence Intel was routinely beating AMD to the lower process node and the performance/cost advantage associated with it. Competing head to head with Intel is CRAZY and leads to price wars, lower margins, and huge losses.

2. AMD bought ATI in 2006 to add a new revenue stream, new tech, and new future opportunities via discrete graphics and more importantly "fusion" which we now know as the APU. The APU and graphics focus at AMD helps to hasten the exit from the traditional x86 market and away from Intel.

3. AMD has embraced ARM and an open architecture model in regards to optimizing and scalability. This non x86 market, while competitive, has the advantage of being "not Intel". Again, AMD is exiting from the traditional x86 market to the APU and ARM markets to find less saturated markets not dominated by Intel...or at least markets hungry for non-traditional x86 solutions.

4. HSA, Mantle, and the other open architecture/programming initiatives (which I freely admit not to understanding well) that AMD either started or openly endorses, AGAIN gives AMD stratification away from the traditional x86 market...AWAY from Intel...and into the arms of potential partners.

AMD as we knew it is dead...and that is a good thing. It is a good thing because AMD could never hope to beat Intel, or gain more market share, other than what Intel ceded AMD to avoid monopoly claims. AMD's business model was FATALLY flawed. So they changed...starting in 2006, and we are seeing the fruits of that labor today in consoles, discrete graphics, ARM servers, HSA, Mantle, etc. ALL away from the traditional x86 market (a loser for fab-less AMD) and away from big bad Intel.

In sum, I smell a strategic re-branding or restructuring of AMD that COULD involve layoffs but should be more about culture and business model rather than headcount. Any company that changes from a in-house manufacturing model...to an out sourced manufacturing model...to an out sourced manufacturing model coupled with new non-traditional revenue streams...has to restructure, move assets, reposition resources to achieve synergy...etc. This will be an ongoing process for AMD and quite frankly I like it. I am accumulating more shares in the company and like their chances very much from what I have seen and their eagerness to avoid Intel...or beat them through the back door instead of storming the gates like before.

Just my 2 cents...

 

My point is they are diversifying away from x86 and looking for growth and stability elsewhere.