AMD's Ruiz Sees 64-Bit Surge Ahead
Simply put, Ruiz has taken a semiconductor maker that was viewed mainly as a provider of lower-cost alternatives to Intel's microprocessors and propelled it to the forefront of the 64-bit revolution with the innovative AMD64 architecture and its Opteron server and Athlon 64 desktop CPUs.
Buoyed by strong demand for those chips and for flash memory, AMD last month reported second-quarter sales of $1.26 billion and a profit of $32 million. The news marked AMD's third consecutive profitable quarter.
Ruiz, who holds a doctorate in electronics, joined AMD in 2000, after serving as president of Motorola's Semiconductor Products Sector.
VARBusiness talked to Ruiz recently to find out how he intends to fend off new competition from Intel, which recently released its first processor targeted at Opteron in the form of the new "Nancona" Xeon processor.
For an in-depth look at AMD's 64-bit progress, be sure to read "AMD's 64-Bit Gambit" in the Aug. 23 issue of <>VARBusiness.
VB: What's your message to AMD's Opteron VARs in light of the new competition from Intel?
Ruiz: I would view it as great news to have this additional competition. It will just strengthen the 64-bit ecosystem, and it's a great time for VARs to get involved.
VB: How do you see the 64-bit landscape changing over the next six months and the next year?
Ruiz: A good question. You know, two years ago there was no 64 bits anywhere in the enterprise. Nothing at all. And we've gone in two years to where Tier 1 manufacturers, such as IBM, Sun and HP, and others, have signed up. I don't think there's any question in anybody's mind that the enterprise from an OEM perspective is moving and offering great products, and that's only going to accelerate.
The other part of that is end users"the financial companies, the oil exploration people"are now on board. They're pulling hard on our OEM suppliers to start delivering products. So the enterprise momentum for 64 bits is going to accelerate.
Today, we're at about a 5 percent share of the enterprise [for Opteron servers]. I expect a year from now we're going to have a double digit share in the enterprise. I also believe that the trickle-down effect will accelerate to the client. So a year from now, we expect to start seeing the first enterprise applications of 64-bit clients.
VB: When you talk about the client side, you're referring to your Athlon 64 desktop processor. Will that ramp up rapidly once the 64-bit version of Microsoft Windows XP is released early next year?
Ruiz: We intend to capitalize on the fact that this is a major product launch for Microsoft. It's a major opportunity for us to use the tremendous market power they have to get the message of AMD64 out to the consumer and to users of client products.
VB: You've had major success getting three of the four big Tier 1s"HP, IBM, and Sun"to adopt Opteron. Any message for Dell, which so far hasn't?
Ruiz: They're a great company. We still feel like we need to continue working with them, because I believe that it's in the best interest of their customers for Dell to offer that solution. And we don't give up.
VB: We've talked to a number of VARs. Some of them are happy with your reseller support for AMD64. But one or two said that support has fallen off since AMD's layoffs in early 2003. How would you respond?
Ruiz: Well, anytime anyone feels that way, we're incredibly disappointed. We have more effort going on in our AMD64 technology than we've ever had on any technology in the company. Maybe never enough, from the perspective of some of our VARs, but we're absolutely committed. I wouldn't hesitate for a second to put whatever resources were necessary to cover any perceived service issues. So, on the one hand, I'm disappointed to hear it. On the other hand, I'm glad they're telling you and me, and I'm hoping somebody in the organization has heard that.
VB: You've succeeded in getting AMD back on a solid footing. How will you maintain the company's forward progress?
Ruiz: Without a doubt, we believe we're the masters of our destiny, the architects of our future. We're very focused on execution, very focused on the roadmaps we have. There's a lot of noise in the industry from the competition in this area, [but] frankly it's turbulence. I think my task here is to make sure the organization stays totally focused on the plans and strategies that we've put together over the past couple of years.