Charting the microprocessor battle

One of the most interesting aspects of staying within the IT industry is watching the fluctuating fortunes of the industry’s major players. You get to see the mighty fall and the underdog rise.

Vendors need to be careful what they say and what is reported in the media.

I was reading about an example of this last week, when the comments of Michael Dell were highlighted in a less favourable light. Mr. Dell, after returning to the vendor’s helm last year, is finding his firm in one of the most precarious positions since its inception.

Dell will be regretting a comment he made some 10 years ago after being asked about the then fiscal problems of Apple.

Dell said he would shut down Apple and return the money to the shareholders. With Apple currently riding a wave of success on the iPod and swimming in a sea of hype round the iPhone, they can look back at Dell’s comments with a smug sense of satisfaction.

Another battle which has interested me over time is the Intel versus AMD battle on the microprocessor front. The reason this is topical to me is that my bags are packed and I’m set to travel to Bangkok for Intel’s annual ISS Summit.

By the time you have read this I will have returned, but be sure to check out our next issue for full coverage of the event.

The reason I’m looking forward to this year’s event so much is because after attending ISS in Auckland last year, I’m keen to chart the progress of the chip giant and I expect some pretty positive outlooks from Intel. Last year in Auckland I got the impression that Intel was unhappy with AMD’s progress, but targeting 2007 as a major turn-around year.

A story which appeared online this month (www.techpartner.news/?108629) reported that AMD had made an operating loss for its first quarter – the vendor’s sixth straight quarterly loss. An AMD spokesperson confirmed that the company has laid off 420 employees as part of a plan to downsize its 16,420-member work force by 10 per cent through the end of Q3. Hector Ruiz, CEO of AMD, said the company was “embarking on a significant restructuring of our company”.

Now I’m sure Bangkok will be more about what Intel itself has done in recent quarters, but there is no denying it will be secretly buoyant with the problems of its number one rival.

By next issue I’ll be able to tell you what Intel’s take on it all is and how their comments differed from one year ago.