|By Virtualization News||
|August 7, 2007 08:45 AM 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.
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
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.
|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.
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
Jan. 21, 2017 07:30 AM EST Reads: 1,290
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
Jan. 21, 2017 07:15 AM EST Reads: 928
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
Jan. 21, 2017 06:45 AM EST Reads: 1,946
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, discussed the best practices that will ensure a successful smart city journey.
Jan. 21, 2017 06:00 AM EST Reads: 2,071
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT depl...
Jan. 21, 2017 03:45 AM EST Reads: 1,988
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Jan. 21, 2017 02:00 AM EST Reads: 5,819
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
Jan. 21, 2017 01:30 AM EST Reads: 6,566
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 21, 2017 01:15 AM EST Reads: 4,910
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jan. 21, 2017 01:15 AM EST Reads: 5,056
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Jan. 21, 2017 01:15 AM EST Reads: 2,889
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jan. 21, 2017 12:15 AM EST Reads: 6,379
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Jan. 21, 2017 12:00 AM EST Reads: 4,715
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Jan. 20, 2017 10:45 PM EST Reads: 935
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Jan. 20, 2017 08:45 PM EST Reads: 4,397
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Jan. 20, 2017 05:45 PM EST Reads: 2,106
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Jan. 20, 2017 05:15 PM EST Reads: 3,830
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 20, 2017 03:00 PM EST Reads: 1,667
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Jan. 20, 2017 02:15 PM EST Reads: 654
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 20, 2017 01:30 PM EST Reads: 5,752
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 20, 2017 01:30 PM EST Reads: 5,261