RE: Acceleware's CompetitionHi Snowwolf,
This is a good conversation for all the Investors to take part in.
The CPU isn't really going away; it's transforming into CPU/GPU hybrid which AMD has the new Fusion APU
that they feel will take a large Market Share from Intel as the CPU Market migrates to CPU/GPU.
The CPU & GPU on one pc. of silicon compliment each other; the CPU does the complex computing and the GPU handles all the heavy graphics and streaming video.
In the CPU Market Intel has 80% AMD 12% World Market Share the rest belongs to smaller cos.
In the GPU Market Intel has approx. 55% AMD 22-25% and NVIDIA 20-22% World Market Share and these numbers change every month; as these three fight for market share.
As the CPU market folds into CPU/GPU starting mass movements in 2011 and on; AMD just shipped the first lot of Fusion APUs (CPU/GPU hybrid) in the last couple weeks. NVIDIA has never really had a market share in the CPU Market; but now through this migration they will; and this will pull market share from both Intel and AMD.
Intel has a lot to lose from this transition; because they have been on top for so long and when you're king of the hill it gets tougher and tougher every year to stay on top.
This is why I think Intel will sneak in and steal Acceleware.
1) Intel and AMD have figured out what NVIDIA's secret weapon is; which is why Intel and AMD are at Acceleware's Door - Testing and Accelerating their products as we speak. Which product for AMD? (Fusion) the one AMD claims will take over the CPU World.
2) When Intel and AMD look at NVIDIA's Kepler Maxwell Graph they have to take action, because those GFLOPS to Watt of power are astronomical. and who is the key ingredient behind those numbers (Acceleware). again AMD and Intel realize this.
3) For those first two reasons alone Intel would want to take out Acceleware. To have the Acceleware Team all to themselves and away from NVIDIA & AMD. why - to remain top dog in the CPU and GPU World Market.
4) Those FDTD libraries that over 150 of the Fortune 500 companies now rely on, if they were in Intel's hands, Intel would be charging 40-50K a month subscription. Now you may say that these companies wouldn't pay that. Well Intel wouldn't care, they would say fine go back to the dark ages with your product roll outs. Well these Fortune 500 Cos. would go elsewhere - To Whom To Where? Over the last 2 years when Acceleware was at the brink of extinction a couple of times; these 150 cos. should have been scrambling to find a replacement FDTD provider.
But they didn't - why - because their wasn't one - and isn't one. period.
5) Acceleware just returned from The SEG in Denver where they had displays in (5) booths including HPs and NVIDIAs. Showing off the Paradigm 2011 release as well, which will push revenues up starting Q1 2011 as it was released late Oct. Who else was at the Oil and Gas show (Intel) why was intel there? Because back in 2005
Intel Dell and Schlumberger did a joint venture to do end to end hardware & software for the Oil & Gas Industry.
That would be reason 3 or 4 for Intel to acquire Acceleware.
Most of the acquisitions that Intel does are lucky to have one reason; as over half of their acquisitions fail and come to nothing. Once Intel sees what Acceleware can do for their products and what Acceleware is doing for NVIDIAs and AMDs products, the lights are gonna come on at the Intel Head Office. Geoff Ryan & Robert won't even see this coming.
So NVIDIA and AMD be aware that Chipzilla is Coming.
I'm done for now.
but I'm not done, we'll talk acquisition dollar values later.