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Executive Interview: AMD CEO Hector Ruiz: Page 3 of 3

Ruiz: Yes. You know, it's an interesting question because what's happened on the manufacturing side is our productivity gains have been--and I believe will continue to be--strong, therefore the need to add a lot of resources is not going to be that clear. The combination of technology migration and improvements in capacity, I think, are going to position us very strongly to continue to do that and, therefore, modest resources [will be] added into that space. On the other hand, on the design side, to be able to design circuits there is a tremendous challenge where we will have to add over the next three years significant resources so that we can take advantage of the growth we've created and try to proliferate the number of products we are offering.
CRN: In terms of your marketing efforts going forward this year, can you tell us about your channel spend on marketing issues? Can you give us a sense of how much that's going to increase or whether it's going to increase? Can you give some quantitative measure or description?
Ruiz: We have plans to grow. We will grow our marketing and support of the channel I would say significantly. ... People think [the market is] going to grow in excess of 20 percent this year [and] we expect we will outgrow the market. That is our plan. We expect the market and sales support of the channel will be in comparison to that--up, but not the same, but significantly up. We are putting more effort today, this year, 2004, in nurturing and developing a relationship in the channel than we've had in a long, long time. We have the broadest product mix than we've ever had in the history of the company.