Intel's mantra: Let's make a deal

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dual-core chips an edge over Intel's last year, though Intel has closed the gap with the recent introduction of the Core Duo processor.

Henry Gomez, general manager of Skype North America, declined to comment on whether the company compared the performance of the two chips head-to-head on its software. A Skype representative later declined to comment on the company's relationship with AMD in general.

By the end of 2006, Intel is scheduled to release two PC chips, Merom and Conroe, that the company believes will tilt the performance balance back in its favor, Kircos said. For its part, AMD won't sit still in 2006; it's also planning to improve the performance of its chips. If there's no clear-cut winner on a performance basis, the product marketing strategy shifts to specific applications and content.

Viiv sets the stage
Viiv is a collection of dual-core processors, multimedia chipsets and software designed to enhance the performance of games, streaming movies and other home entertainment applications. Viiv PCs are rolling out from PC makers this year accompanied by links to special content, such as high-definition highlights of NBC's Olympics coverage, a lure announced by Intel earlier this year at the Consumer Electronics Show in Las Vegas.

That content is currently available to just about any PC, but Intel is extending the verification concept it advanced with the Centrino platform to Viiv. Intel verified that more than 90,000 hot spots worldwide would work reliably with Centrino laptops. It plans to do the same with Viiv, guaranteeing that certain content and home entertainment applications will run smoothly on Viiv PCs.

Given the Skype example, analysts say it wouldn't be a stretch for Intel to take the further step of using its marketing clout to secure exclusive content and software that will work only on Viiv PCs.

A similar strategy has worked very well for new Intel partner DirecTV, which has the exclusive rights to let football fans watch every National Football League game, under its NFL Sunday Ticket service. Any football fan with a television set can watch NFL games featuring their local teams, but those viewers can't watch games that feature cities outside of their designated geographic region unless they have a DirecTV satellite dish and pay extra for the Sunday Ticket. Intel and DirecTV plan to release a Viiv PC later this year that can accept content from DirecTV's satellites.

Savvy marketing or unfair competition?
AMD executives argue that any exclusivity clauses in Intel's partnerships are nothing more than an extension of its so-called market development funds, which provide PC makers with marketing money in exchange for displaying an Intel logo on their boxes, said Hal Speed, a marketing architect with AMD.

Intel's Kircos declined to comment on whether Skype was provided with marketing funds in exchange for making the multiperson conference calling feature exclusive to Intel under a similar program. But Intel's engineers did do the work needed to tweak Skype's software to accept Intel's chips as the default processor for those types of conference calls, he said.

Intel and Skype's deal is for a limited time only, Gomez said, after which AMD is expected to get a crack at opening up its chips to the advanced conference calling feature. But by moving first, Intel has seized the opportunity to paint itself as the preferred platform for Skype, much the same way gaming console makers fight to secure the initial release of sought-after games or cell phone providers pursue hot new phones.

"Grand Theft Auto: Vice City" was released in the U.S. on Sony's PlayStation 2 console in 2002 before making its way to the PC and Microsoft's Xbox in 2003. That limited exclusivity for one of the hottest video games ever released was a boon for PlayStation 2 sales, and Sony currently enjoys a dominant position in the console market, even though the Xbox and a standard PC are considered more powerful devices.

The same could soon be true for the PC market, which has always been about performance even as Intel has retreated from its strategy of emphasizing clock speed as the ultimate indicator of processing power. "If the technology is close enough that it becomes a wash in the consumer's mind, it could be the content that makes the buying decision clearer," Krewell said.

[njwashor]

Shady

This kind of business practice disgusts me. This is essentially the same thing as Coca Cola not allowing Mc Donalds to sell Pepsi products (which if I recall correctly, was found to be an illegal marriage). This sort of partnership between two unrelated enterprises should be outlawed as it stifles innovation, discourages free trade, and is all around bad for the consumer.

[Intelrules]

Not shady

It is perfectly legal when you read & hear about exclusive deals!! As long as both side's sign an legal contract stating an exclusive deal between each others technology is legal also other company that is being pitched the deal can simply decline the offer & not sign any contract at all!!! Anyway if you read the article you would stumble by them saying several time's it is a limited time deal for an undisclosed time period!!

[Jim Hubbard]

Boycott Skype and others that adopt Intel's practices....

I believe we should boycott companies that enter into such agreements with Intel.

While Skype was the first, well-known player in the VOIP for PC market, it is by far not the last.

No responsible software manufacturer would adopt such a strategy. It seems to me that Skype (a company that has yet to turn a profit) is getting desperate.

Unfortunately for them, desperation usually results in stupid moves that further harm your company.....like this one.

I have long been an AMD fan and this validates my choice even more. Long live AMD!

[mahurshi]

what's the problem ???

just because you're a fan of AMD doesn't mean such deals by Skype are not good.

who knows, maybe they will develop a cool technology together.

besides, if you want to go and boycott Skype because they're making a living out of such deals, you're not letting the company grow. and its not like they said that their software doesn't work at all on AMDs.

Give them a break..

[chassoto--2008]

Firing off an email to Apple

I was planning to buy a new iMac Core Duo. Nope. Not gonna. I'll
stick with my old G4 until Intel drops this. Sorry, Apple. Get in bed
with ******, catch a nasty bug!

[Earl Benser]

Now that's a bit radical....

... shoot yourself in the ass just to make a point that you don't like
a legitimate business maneuver by Intel. You're the one who is
paying the price. Apple won't miss you; there are just too many
other buyers to pay attention.

[Ljanicek]

Intel's deal w/Skype is Pathetic

Intel a powerhouse of American technology and innovation should hang it's head in shame with it's latest gambit to try to stunt AMD with it's exclusive deal with Skype. This pathetic manuever tells the world, if you can't beat them with a superior product, box em out by playing the 800 pound gorilla routine, a la Microsoft. Andy Grove, where are you ?

Good for Intel - Dumb for Skype

As a regular Skype user I think it is a dumb move. I can have a group of 4 on with any CPU so why would I bother buying an Intel CPU system just o get another 2?

For Intel it gives them a bit of publicity and bragging rights but unless Intel gave them a bunch of money I don't see they point for Skype.

There will soon be OpenSource versions that don't rely on centralized web sites so Skype should keep all their options open. Their mistake.

[df561]

it stinketh :-)

this news makes both intel and skype look bad. How shameful.

[sharikou]

Microsoft can kill INTEL in a flash for being in bed with apple

the code
if(CPUID matches "INTEL") P
//you little bastard, sleep with Jobs
say("Sorry, your CPU is slow and dumb, only 5 Windows can be opened");

}else {
say("Welcome to Windows, unlimited Windows");
}

<a class="jive-link-external" href="http://sharikou.blogspot.com/" target="_newWindow">http://sharikou.blogspot.com/</a>

[Earl Benser]

Sure....

... and if the do, it's called a Pyrric victory.

[SystemsJunky]

Just another reason

for AMD to justify their claims that Intel is trying to stiffle its competition. i hope they win that lawsuit. Just like the deal with apple, im sure Intel hooked Skype up with 100's of millions of ad dollars :)

Intel - Bad
AMD - GOOD

[J_Satch]

re: Just another reason

fire BAD
beer GOOD

[chhooks]

Well, geuss I won't be buying that new computer...

I had almost talked myself into the 3 ghz range and was ready to make the switch to Intel from AMD...

Not with garbage like this going on! Forget Intel AND skype! Who needs them!!!

[Earl Benser]

AMD should quite complaining...

... and make its own deals. There are many other VOIP options out
there waiting of for effective conference calling (I think). Or AMD
could just engineer an alternate approach that neutralizes Intel's
edge. Complaining gets nothing done.

[Rolndubbs]

Okay...

Yet if this was microsoft making more deals, I have a feeling you would be singing a different tune. Smart move on intel's part, they have to offer something exclusive since they are lagging behind AMD in performance and efficiency atm. This could change this year, but with the M2 chips coming out and intel releasing its new stuff, it should be a fun year for hardware.

[Intelrules]

RE:

amd only knows how to complain thats all. They are too dumb to do anything about it also amd keeps shooting themselves in the foot by consistently accusing Intel of unfair business practice's when they get the best contract possible. amd keeps on undermining their suit against Intel. amd is just a tiny little cry baby that cannot act on a competitors exclusive deal for a limited time.

[coryschulz]

I'm okay with it...

Just as long as Intel and AMD are both making processors, it's fine by me. As long as we are still pushing for better and better I see only progress.

From what I've read, AMD still has stronger processors then the Core Duo. AMD practically created the market for 64 bit processors and Intel is still trying to catch up after many failed attempts. The AMD architecture is much stronger and has more potential then Intels. But really, all of this is nothing compared to IBM's Cell processor that can have up to 16 processors ("cells") and is equivalent to a 25gig P4 (That's right, a 25 ghz Pentium 4 Processor). Personally, I'm more interested to see how well the Cell Processor performs in the PS3 and what IBM plans to do with it after that.

[Earl Benser]

Honest question....

Previously, there have been comment that the Cell is okay as a
game machine processor, but it is the wrong design for a computer
pprocessor. Now you note that it is apparently the equal of a 25
Ghz P4. I assume that that's a 25 Ghz P4 in a PC, with unspecified
bus speed. But what details can you offer to substantiate the
equivalency?

[atomicpineapple]

Lets make a deal/screw people over

Pathetic. Intel, instead of actually making GOOD CPU's that can beat AMD, decides to try and bully people into buying its inferior rubbish by using its cash reserves to restrict full use of certain programs to Intel. Fair do its only Skype today, but whats next? Intel only games/other apps? These corporate pricks really do annoy me sometimes.

[TheTSArt1]

SkypeOut Balance Gone!

I guess they know I have a PowerPC Mac due to my software
version. I made a call about two weeks ago and had a balance left
when I hung up.

Today, my balance is zero. So, I lost about $10 because I don't
have an Intel chip?! That's terrible business!