Intel's main chip rival AMD is being locked out of government contracts because tender specifications single out Intel CPUs in the provision of PCs and notebooks.
AMD is lobbying the Australian Government to change specifications that have historically named Intel processors in contracts to supply departments. "Originally, when they needed an IBM compatible PC, Intel got their name in there, but now that locks out any opportunity for other companies," John Robinson, AMD's country manager for Australia and New Zealand, explained.
"It removes the competitive nature of a tender. It also disables the opportunity for local companies to participate because there is no incentive for Intel to change their CPU pricing because they are still going to win business."
The government has been very supportive of the whole situation, Robinson said.
The company is beefing up both its local and global OEM relationships, appointing Sam Beydoun OEM sales account manager for Australia and New Zealand. Beydoun will work to establish more generic details in government contracts.
According to Robinson the government sector is extremely important even though it is not a huge part of the market.
"A government business may call up five, 10 or 20,000 PCs at a time - that's a big pocket to be locked out of. We are very confident that once their specifications are drawn up in a more generic style we will capture a good portion of the market."
Under the current regime, he said, global companies get the best pricing deals, limiting the incentive to change pricing structures for local players.
"This will be good for everyone including the government and it will give local companies more opportunity because they will have another option to quote on."
Over the past few months AMD has embarked on an awareness campaign, as well as consolidating its channel to suit its product line. It is also looking at taking on the corporate market. The company's channel partners will be key to the success of the company in breaking into this market. AMD will work with the likes of Legend, APD International and Avnet to establish new clients.
To date most of AMD's business has been in the consumer segment. In the US, the retail market accounts for around 45 per cent of its business.