Word: microprocessor
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Dates: during 1990-1999
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Digital's surprise assault was impeccably timed: the previous week Intel had celebrated the launch of next-generation chip Pentium II. And the day of Digital's suit, microprocessor upstart Cyrix quietly filed its own patent-infringement claim against Intel. Digital followed a day later with full-page ads in the Wall Street Journal, New York Times and San Jose Mercury News. Wall Street took the bait, wrist slapping Intel's soaring stock down $6 and backslapping Digital up $2 in the belief that the microchip David wouldn't rile Goliath unless it had a really, really good case...
...week's end analysts were asking whether the Digital action was an honest plea for justice or just the bared-fang attack of a cornered and wounded animal. The tottering hardware giant had bet heavily on its $2.5 billion Alpha microprocessor to return it to prosperity. Alpha is unquestionably the fastest chip on the market, but its speed hasn't overcome Intel's marketing clout. In 1996, according to Scottsdale, Ariz.-based Mercury Research, Intel shipped some 65 million Pentium chips, or 76% of the microprocessor market, compared with 200,000 Alphas. And this year looks grimmer still: 18 million...
...weapon is the MMX (for multimedia extension) technology, Intel's new multimedia-enhanced microprocessor line that's designed to make music sound more resonant, video images flow more smoothly and graphics colors look richer. Since its release earlier this year, the new microprocessor has found its way into both laptop and desktop computers, and Grove hopes it will lure more people than ever to computers when they need to communicate, do business or just entertain themselves...
...surprising smell emanates from Only the Paranoid Survive (Currency Doubleday; 202 pages; $27.50), a literate new business-technology book from Intel CEO Andy Grove. The first wave comes as he describes how the microprocessor giant narrowly avoided tanking after shipping defective Pentium chips and then ignoring customer pleas for help in 1994. Another whiff drifts by as Grove recounts Intel's stumbling exit from the memory business just in time to avoid becoming lunchtime sushi for chip-dumping Japanese megaliths. And the scent grows stronger as he chronicles his decision not to orient his company to the Internet. The aroma...
...world of high technology, a great product, a remarkable corporate transformation and market acceptance could in fact be an epitaph. The Next Big Thing, just a gleam in some undergraduate's eye today, could put your company out of business tomorrow. Andy Grove, the Intel CEO who led his microprocessor company through a series of similarly wrenching changes a decade ago, has distilled the essence of competing in a high-tech world down to a single sentence: "Only the paranoid survive." He's right. Uncertainty is the watchword of the new digital age. That's why Microsoft is throwing everything...