How to Take Share with Technical Support
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By Rob DeRobertis
Intel and Microsoft had a vision to offer PC makers the ability to integrate audio onto the main PC processor board (called the motherboard) - rather than on an add-in PC board. The industry initiative for this move to integrated audio on the PC motherboard was dubbed AC'97. Because motherboards were designed by PC designers rather than specialized audio add-in card makers, it quickly became clear to the Company that the AC'97 trend would shift the value of PC audio component suppliers from simple silicon hardware to a Whole Product offering combining hardware, software and support.In order to build a competitive advantage the Company needed to shift investment in silicon to a significant investment in relatively unfamiliar software and integration capabilities. But the harsh reality was that as a barely profitable hardware supplier, the Company had to make a bold move if it was to maintain a position in the audio chip market.
Strategy
Prior to the introduction of AC'97 the standard PC audio solution was an add-in card comprised of three functions: a bus interface, a sound synthesizer, and a CODEC for converting analog signals to/from speakers and microphones. The Company's main competitor had a superior bus interface and synthesizer functions, and was about equal to the Company in CODEC functionality. With audio becoming a baseline PC feature, Intel and Microsoft wanted to separate the CODEC onto a discrete chip, integrating the bus interface into the PC's core processor logic, and emulating the synthesizer in MS Windows software. Intel and the Company were strategically aligned to jointly develop this alternative integrated architecture, an initiative which the incumbent dominant audio chip competitor resisted because it stripped them of hardware advantage in bus interface and synthesizer functions.
