Feeds

AMD's CEO doesn't have Intel to kick around anymore

Wall Street measures Ruiz's head

Next gen security for virtualised datacentres

Ruiz deserves some credit for not turning to the Intel excuse during one of AMD's darker hours. No one wants to hear an underdog whine.

But was the “channel mix did us in” really the right refrain?

AMD has spent the last four years adjusting to the new OEM-driven business model. You'll recall that IBM, HP, Sun and Dell didn't hop on board overnight. Instead, each vendor made its way to AMD in a long, drawn out fashion, giving AMD plenty of time to digest their business.

In addition, AMD has spent the past two years bragging about the success of its channel programs. Have a look for yourself. The chip maker even crafted a home in Second Life and developed virtual reality style presentation software for touching the channel crowd – money well spent, as you can tell.

But here's Ruiz in April of 2007 talking about how AMD has struggled to manage “this more complex world” and how “the way we manage accounts will be different” - a change meant to reflect the channel to OEM shift.

You'd think it would be easier to manage things with sales off by 38 per cent rather than at Opteron's peak, no?

It could be the case that the ATI acquisition, AMD's reluctance to ship a non-native four-core version of Opteron and a general resting on laurels are more to blame for the first quarter miss than a channel issue. And, of course, a resurgent Intel hasn't helped matters either. But, as mentioned, AMD only likes to blame Intel for its problems when things are going well. (Funny that – Ed)

Wall Street became so infatuated with AMD during the company's run-up that the analysts appear reluctant to put any pressure at all on Ruiz now. Perhaps they're all hoping that the four-core Barcelona, due out at mid-year, will restore the natural order and send AMD's shares sky high again.

From where we sit, Ruiz has failed to demonstrate the competitive fire needed to combat an inspired Intel. The CEO's confidants might disagree with this appraisal, but we're in WYSIWYG mode.

Ruiz's anti-trust rants used to fuel the troops and gave the executive a Jerry Sanders type edge. Now, we're left with a CEO that bickers over channel minutiae, while claiming he can't wait to pursue an “asset light” model and learn things from partners. His Second Life avatar chews on similar offal.

All Fiorina and Rollins did to get canned was present lower than expected profits. A $600m loss doesn't compare to those track records terribly well. ®

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Cutting cancer rates: Data, models and a happy ending?
How surgery might be making cancer prognoses worse
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?