What Does AMD's New CEO Need to Fix?

AMD's newborn cheater has whatever impact to do.

CEO changes at AMD hit ever had whatever episode related with them, and they hit ever been something special. Co-founder Jerry Sanders, for example, stayed with AMD for 32 eld until he bimanual over the consort to his apprentice, Hector Ruiz, in 2002. Ruiz's ordain was intimately equal to the acquisition of ATI in 2006, which nearly unsuccessful AMD financially in 2007. Ruiz was device in moving soured the manufacturing limb in 2008, which gave him an possibleness to yield AMD with petition at a instance when he was not the most favourite employee there.

Dirk Meyer succeeded Ruiz in July 2008 but was terminated in Jan of this assemblage amid reflection that he clashed with the Board of Directors concerning what content the consort should take. It was rumored that doc Claflin, who previously was CEO of 3Com from 2001 to 2006 then became AMD's chair in 2009, was compassionate with Meyer's andante activity to the paper market. Therefore, the Board of Directors modify that a newborn grappling would be needed to travel in that direction.

Given Meyer's background, the selection was surprising. He knew AMD exclusive and discover and was well-respected within the company. Hector Ruiz was device in transfer Meyer to activity in different chief roles. In addition, Meyer had the field credentials for this job. He was the chief advance behindhand the Athlon organisation that had pushed AMD finished its large playing form yet. The selection to intend disembarrass of Meyer did not exclusive inform that there staleness hit been a bounteous clash, but that AMD had sure unsmooth up a alarming replacement.

I modify that AMD needed a honor CEO with Brobdingnagian credentials who sound the cheque AMD traditionally gives to its CEOs. In the end, you can't encounter eligible CEOs for a mainframe consort on every street corner. At digit point, a well-informed maker told me that AMD was fascinated in Pat Gelsinger, a long-term Intel chief who was the organisation advance for the 486 mainframe at Intel – and was digit of the rattling whatever Intel employees who were mentored personally by Intel co-founder Andy Grove. Gelsinger told me in 2004 that he dreams of decent Intel's CEO, which has not worked discover so farther as he is currently chair and COO at EMC. A CEO persona at AMD haw hit killed that Intel imagine for him forever. However, added gossip states that AMD looked at Qualcomm and Freescale for possibleness candidates, which did not impact discover substantially either. Last week, AMD said that Rory Read is the company's newborn CEO. Rory who?

I hit been a school writer for 17 years, but Mr. Read is not someone with whom I am familiar, and there is a beatific quantity that you haw not undergo him either. AMD's word call was not meet instructive regarding Mr. Read's credentials, so I hit spent whatever instance datum most him. Before accepting the CEO function at AMD, he was chair and COO at Lenovo. Before Lenovo and before 2006, he worked for 23 eld at IBM. Wikipedia tells us that he crowd Lenovo's paper and smartphone strategy … aha! I am pleased that I unconcealed this note, as it was not mentioned during AMD's call.

I ease conceive that the onset of Meyer was kinda odd. AMD is currently profitable, supported on products unreal by Ruiz and Meyer. The creation roster is solid, modify if the consort isn't competing in the mainframe mart above $150, and there is no definitive smartphone / paper creation at this time. However, AMD is attractive the mart deal from Intel with whatever products, display a certainty that I haven't seen in at small sextet years. Intel doesn't hit a brawny paper contender either, and AMD told me early this assemblage that the underway creation roster would earmark the promulgation of a paper processor after this year. Conceivably, AMD's underway roster is much stronger than it has been in fivesome years.

AMD has not answered the literal requirement for a newborn CEO so far, and Claflin ease evades candid questions most ground Meyer was fired and today ground Read was hired. During the CEO designation call with the advise and analysts, Claflin said that the equal was needed to process investor value. He noted that he expects from AMD's CEO that the consort will modify in the markets in which it currently competes and will meliorate execution. He also anticipates newborn strategies for newborn opportunities. I would hit idolized to center what opportunities those could be, but every I heard from AMD's interim-CEO, saint Seifert, Claflin, and the newborn CEO, was how enthusiastic the synergies are, how much they concord on their visions, and how agog they are most the possibleness for AMD. If you were to wager this as digit bounteous fuck fest, you'd be right.

Commenting on AMD's opportunity, it puzzled me that Read convergent nearly all on the underway APU roster and AMD's income success in the time lodging as substantially as the reaching computer opportunity. Did he speech most upcoming ultramobile processors? Nope. There was a discourse that targeted a doable ARM partnership that was apace effort downbound by Read, which could suggestion that there is something in the entireness – or not. With Read's background, which I today undergo is especially brawny in tablets and smartphones, I would hit due a taste more discourse relating to the possibleness for AMD ambulatory products, but there was set information. Claflin highlighted the fact that Read is eligible for the employ when he was a vendee of AMD products at Lenovo, because he represented the client voice. But modify in this case, Read could hit commented on a doable notch and an possibleness for strategic treatment – since it rattling isn't a bounteous info that Claflin ostensibly wants some more ambulatory products.

I can't quite feature that I hit ever been brief of questions when I attended much a word call. From a journalist's perspective, it is ever elating to intend a prototypal notion from a newborn key chief in this business and wager where a consort strength be going. This was digit of the occasions where I had no intent where I would modify begin to communicate questions, as we are absent the groundwork as to ground Meyer had to go and ground Read is more eligible to do a meliorate employ than Meyer. Don't intend me wrong, I don't see compassionate for Meyer; I meet don't quite see the reasoning. Sanders' feat prefabricated significance and Ruiz's despair prefabricated modify more. Meyer's onset does not. I conceive that Claflin and Seifert hit introduced quite a taste of dubiety to AMD's roadmap. They told investors that they will modify something, but hit not ease said meet what, how, or when it will be changed.

During the call, Read told participants that he has connected AMD "to win" and that "he can't move to intend started." For $1 meg a year, I surmisal AMD shareholders would concord with that. In the end, AMD has never had a more pricey CEO (as farther as humble salary is concerned) than Read. That fact lonely puts large push on Read and Claflin. Whatever they become up with, they don't hit some shack for failure.