Click here to close now.




















Welcome!

Containers Expo Blog Authors: Tim Hinds, Adrian Bridgwater, Pat Romanski, Hurricane Labs, Dana Gardner

Related Topics: Containers Expo Blog

Containers Expo Blog: Article

Intel Accuses AMD of Defamation

Intel's spokesman, the supremely tactful Chuck Mulloy, took off his pearl-gray diplomat's gloves and accused AMD of defamation

After AMD's latest Intel-targeted broadside Thursday morning, Intel's corporate spokesman, the supremely tactful Chuck Mulloy, took off his pearl-gray diplomat's gloves and accused AMD of defamation.

He said that a lot of the brickbats that AMD has flung at Intel in the last two years rise to slander or libel but that Intel is hogtied and can't charge AMD with defamation because of the "anything goes" environment surrounding the antitrust suit AMD lodged against Intel in 2005.

"AMD is trying to damage Intel's reputation. It's determined that even if it loses the antitrust suit, in the end Intel will look like the bad guy to the consumer," he said.

What finally got Intel's goat was an "economic study" that AMD was trying to "peddle to the press," Mulloy said, that makes it look like AMD is laying its claims for damages way this side of a trial that isn't supposed to begin until April of 2009.

The study, done by the ERS Group, a litigation consultant retained by AMD's outside counsel O'Melveny & Myers, claims that Intel extracted "monopoly profits" from microprocessor sales in excess of $60 billion in the decade between 1996 and 2006.

AMD says that ERS and its head honcho Dr. Michael Williams, who's consulted with the Justice Department and Federal Trade Commission on such things as the proposed mergers of Exxon and Mobil and BP Amoco and ARCO, and on our old friends the FTC v Rambus and US v Oracle lawsuits, calculated Intel's economic return using public information and a methodology based on "Nobel Prize-winning research" by Merton Miller and Franco Modigliani that is used by half of the Fortune 1000 to analyze their own economic performance, Wall Street firms to assess potential investments and management consulting firm like McKinsey and Stern Stewart generally.

Mulloy called it, "Bull Shit," and asked if Intel should be penalized for being successful.

The ERS study claims to determine that consumers and OEMs could gain over $80 billion in the next 10 year - $20 billion for OEMs and $60 billion for consumers in the form of a 1.5% savings on a $1,000 computer - if the microprocessor market was "fully competitive."

It claimed that Intel's pro-competitive justification for its monopoly profits are "implausible" - in part because - according to relatively simple math - it's that "rarity of firms that achieved" - unlike Target, ExxonMobile or Pfizer - "a 16% or more economic return" and because it's - swear to God this is what it says - being sued by the European Commission.

AMD's press release says that only three other companies earned 16% of more, namely Microsoft, UTS and Coke, and that "each of these companies has been associated with antitrust determinations" so innuendo…innuendo…

Mulloy claimed that even the press that AMD tried to leak the story to Wednesday before putting out a press release Thursday morning threw the study back at AMD because some of the underlying numbers - on which its "wildly false and incorrect" conclusions were based - were flat out wrong.

He couldn't resist. "It just goes to show that if you pay someone enough, they will say almost anything."

He claimed that the study is part of a "political PR blitz" that AMD has mounted to capitalize on the European Commission's antitrust charges against Intel so it can run Intel's name into the ground.

It's only been a week since the EC charged Intel with antitrust violations because of its discounts and rebates and so far AMD - which has attempted to paint itself as utterly uninvolved even though the EC's statement of objections is a response to years of AMD's complaints - has- by Mulloy's count - put out three press releases, staged one press conference, racketed up its lobbyists in Washington, run full-page ads in the New York Times, Washington Post, Wall Street Journal, Austin American-Statesman, San Jose Mercury News and various online sites saying "Intel is paying and pressuring computer manufacturers to boycott AMD," and put together a press campaign in upper New York State where it's hoping to build a new plant telling the locals "how good the EC's actions is for them."

Intel of course maintains that ASPs have fallen steadily across-the-board and that if its prices were predatory and prejudicial to AMD, as the EC claims, that trend wouldn't be across-the-board as can be plainly seen in figures from Mercury Research, IDC and Gartner.

Using the ERS study, however, AMD's chief counsel Tom McCoy claims "Intel's monopoly profits of $60 billion directly contradict Intel's claim that its business practices have resulted in lower prices - in fact this study shows that billions of dollars have moved straight from consumers' pockets to Intel's monopoly coffers. That $80 billion translates into an Intel monopoly tax on every consumer who purchases a computer. That's a jaw-dropping figure that helps explain why the European Commission brought antitrust charges against Intel - the real harm that its abuse of monopoly power causes competition and consumers."

Of course no consumer has ever complained.

Some of the tinder AMD is using to burn Intel, Mulloy said, are "allusions to an SO it hasn't seen because it's confidential" and others are simple misrepresentation.

For instance, do you remember that class action that was filed back in January that claimed that Intel paid Dell over a billion dollars a year in kickbacks not to buy chips from AMD?

Well, you should because AMD has been beating that particular drum this week as evidence that the European Commission is on the right track in charging Intel with antitrust.

The only problem is that suit was withdrawn back in May, a fact AMD neglected to mention.

Seems the court refused to let Bill Lerach, the guy who filed it, be the lead lawyer for all the class actions filed against Dell after it was discovered that the SEC was investigating Dell.

Lerach of course was a partner in the old Milberg Weiss Lerach mob that took American companies for billions in dubious class actions over the years and is now under indictment itself for paying plaintiffs kickbacks.

Aside from hell freezing over, for consumers and OEMs to realize that tantalizing $80 billion, Intel's price premiums would have to drop by 50% over five years, AMD's market share of units sold would have to rise to 35% in the same five years, OEMs would have to pass 75% of their saving on to buyers and PC sales would have to stagnate at only half their historic growth spurts.

Year ASP % Change
1997 222
1998 188 -15.5%
1999 174 -7.2%
2000 170 -2.2%
2001 137 -19.9%
2002 129 -5.2%
2003 127 -1.5%
2004 134 -5.2%
2005 131 -2.0%
2006 116 -11.5%
2007 109 -6.3%

Caption: Intel asked Mercury Research to compare average x86 ASPs over the last 10 years. What Mercury's Dean McCarron came back shows a drop of $113, slightly more than 50%. Intel wants to know how that can possibly be bad for consumers.

More Stories By Virtualization News

SYS-CON's Virtualization News Desk trawls the news sources of the world for the latest details of virtualization technologies, products, and market trends, and provides breaking news updates from the Virtualization Conference & Expo.

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Intel vs AMD News Desk 08/05/07 03:58:43 PM EDT

After AMD's latest Intel-targeted broadside Thursday morning, Intel's corporate spokesman, the supremely tactful Chuck Mulloy, took off his pearl-gray diplomat's gloves and accused AMD of defamation. He said that a lot of the brickbats that AMD has flung at Intel in the last two years rise to slander or libel but that Intel is hogtied and can't charge AMD with defamation because of the 'anything goes' environment surrounding the antitrust suit AMD lodged against Intel in 2005. 'AMD is trying to damage Intel's reputation. It's determined that even if it loses the antitrust suit, in the end Intel will look like the bad guy to the consumer,' he said.

@ThingsExpo Stories
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.