Financial Chronicle
Servers are back in the limelight. Emerging technologies like virtualisation and cloud computing are changing the way servers are deployed today. The focus is slowly moving away from just raw performance to scalability and return on investment. “I feel that the server market is as exciting as ever right now,” says Jeff VerHeul, corporate vice-president of Central Engineering at AMD. He is also the co-leader of AMD’s Central Engineering group with Chekib Akrout, having direct responsibility for AMD’s system on chip (SOC) and Unified Northbridge engineering efforts. Previously, Jeff was responsible for AMD’s design engineering organisation, including driving AMD’s silicon roadmaps and providing leadership to seven engineering sites worldwide. Jeff is confident about the growing server market due to emerging technologies. In a recent chat, he accepts that the war in the server market is on and AMD would be keeping momentum, hopefully to launch a 12-core processor by the first quarter of 2010.
Excerpts:
After the launch of Istanbul, how do you view the server business globally and specifically, growing markets such as India?
Emerging technologies like virtualisation and cloud computing are changing the way servers are deployed today. The focus is slowly moving from just raw performance to scalability and return on investment. In the 4P (socket) server and the 8P server market, we view the trend as moving towards performance and expandability. Virtualisation is driving the need for more cores and greater scalability. In the 1P and mainstream 2P server market, power efficiency and value appear to be the primary drivers for ultra-dense and cloud computing environments.
There are essentially two sets of requirements in the enterprise sector: virtualisation, which is driving the need for more number of cores and scalability and cloud computing, which is driving the need for greater energy efficiency. Both have huge potential in India and AMD is addressing this with Istanbul—the new six-core AMD Opteron processor. We will continue to serve the needs of this market with a strong, customer-driven roadmap. While Istanbul is based on the same robust 45nm silicon as Shanghai, there are two additional CPU cores that have been added without an increase in the power envelope.
Additionally, AMD has made enhancements to the coherent HyperTransport technology interconnect with the innovative HyperTransport technology HT Assist that is designed to reduce traffic in processor-to-processor communications. Additionally, the Northbridge speed on Istanbul processors has been increased to 2.2GHz—as compared to 2.0GHz for Shanghai.
The war in the server market seems to be intensifying with Intel planning to launch 8-core Nehalem Ex chip by 2010. How do you plan to improve AMD’s marketshare?
We are not standing still. We are working on our next-generation products. Because of AMD’s near perfect engineering effort, and Global Foundries’ superior manufacturing execution, we launched our Istanbul processor several months ahead of the scheduled launch, originally planned for the second half of 2009. We will keep our momentum and launch the 12-core processor by the first quarter of 2010.
We are focused on delivering the best products for the market regardless of the macro economic conditions. I feel that the server market is as exciting as ever right now. Earlier, the focus was on raw performance, but the customer value shift is currently underway with virtualisation driving the need for more cores and for greater scalability, performance and expandability. Because of a dramatic customer value shift happening in the server market, AMD believes the purchase decision is no longer simply based on the speed or number of processors in the server—its now about how a server must be used and what it must do. Performance per watt (energy efficiency) is also a key consideration. AMD’s roadmap has and will evolve to address emerging trends and such keen-sighted innovation will definitely help us strengthen our market position.
A recent IDC report said that the server shipments may sink to 26% in first the quarter, but there could be a reverse in 2010...
We are focused on creating solutions that customers will require. This is still a large market and a strategic priority for us, regardless of near-term economic dynamics.
AMD is tightening its focus both in microprocessors and graphics innovation. What is the role you envisage for the Indian engineering team in this exercise?
Our new ‘One AMD’ structure was designed to optimise AMD’s operations and further integrate the company’s x86 processor and graphics technologies. When it comes to high end technology products/solutions such as processors, the development process is not as simple as it seems. The ever changing market dynamics pose a challenging environment for the engineering teams to deliver business relevant products, not to forget in the least time-to-market. This has resulted in a closely coordinated effort across all of AMD’s development centres.
AMD’s India R&D operations are part of our Processor Solutions Engineering group, which directs the development and execution of AMD’s CPU platform/product roadmaps in partnership with AMD’s business units. AMD’s R&D centres in India have played a pivotal role in the development of our current and next generation products for a long time now.
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