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CONFIDENTIAL
Open specs in Public Procurement
Per Bahr
Manager, Public Sector EMEAI
Stockholm, April 2008
Agenda
•Why Open hardware specs in public tenders?
•The Danish Ministry of Finance case
•What has been done by other EU member states?
•Open hardware specs and the benefits
•AMD energy efficient computing
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AMD public sector EMEAI
CONFIDENTIAL
Why Open hardware specs in public
tenders?
•@ AMD we track and monitor public tenders!
•Because most Public tenders 3 years ago used brand names when
purchasing computer systems
•“Intel” was the most commonly used description of a processor,
effectually disabling AMD based bids to enter in the competition for
business
•GHz references, references to cache size, FSB speeds ect., are also
discriminatory due to difference in IPC between Intel and AMD
•AMD realize that we need to change this if we want to compete and
grow in the public sector market, so we track and monitor tenders in
order for us to “open” up bids that would otherwise be closed to AMD
•AMD want to offer public sector more choice and competition,
thereby reducing cost for public sector authorities, bringing value for
money and enabling choice and innovation at the PC platform level.
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What are the rules in the EU?
Article 23(2) of Directive 2004/18/EC on the coordination of
procedures for the award of public works contracts, public supply
contracts and public service contracts provides that:
y technical specifications shall afford equal access for bidders and not have the
effect of creating unjustified obstacles to the opening up of public
procurement to competition
Article 23(8) provides that:
y Unless justified by the subject-matter of the contract, technical specifications
shall not refer to a specific make or source, or a particular process, or to
trade marks, patents, types or a specific origin or production with the effect
of favoring or eliminating certain undertakings or certain products
y Such reference shall be permitted on an exceptional basis, where a
sufficiently precise and intelligible description of the subject-matter of the
contract is not possible;
y However, such reference shall be accompanied by the words "or equivalent"
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AMD public sector EMEAI
CONFIDENTIAL
The Problem!
Discriminatory technical specifications:
A «An Intel Microprocessor»
B «An Intel or equivalent microprocessor»
C «A microprocessor with a minimum clock rate of 3.6 GHz»
D «An Intel Pentium IV 3.8 GHz or an AMD Athlon 64 4000+»
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The Problem!
E «An x86 microprocessor achieving the benchmark score of an Intel
Pentium IV with a clock rate of 3.8 GHz»
F «Others»
y Minimum Level of 2 Mb L2 cache
y High performance microprocessors
y State of the art microprocessors
y 100% memory available if one CPU breaks down
y Intel chipset
y chipset or processor from the same manufacturer
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AMD public sector EMEAI
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The Solution!
Technical specifications should require for:
1. Computers/servers incorporating X-86
microprocessors; and
2. A minimum score on an independent
benchmark.
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AMD public sector EMEAI
CONFIDENTIAL
Agenda
•Why Open hardware specs in public tenders?
•The Danish Ministry of Finance case
•What has been done by other EU member states?
•Open hardware specs and the benefits
•AMD energy efficient computing
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AMD public sector EMEAI
CONFIDENTIAL
The Danish Ministry of Finance tender
•In November 2006 the Danish Ministry of Finance issues
a tender for PC’s and notebooks, covering 40% of the
public spend on IT clients in a given year, 150000 units
over 3 years!
•The standard PC category performance level is
described by: “3Ghz processor”
•The advanced PC category performance level is
described by: “2,5GHz processor dobbelt kerne”
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AMD public sector EMEAI
CONFIDENTIAL
The Danish Ministry of Finance tender
AMD contacts the Ministry and ask them to amend the
specs to “open” the bid to AMD based systems.
The Ministry amends the specs to read:
Standard desktop: “x86 processor baseret system
som scorer minimum 200 points under Sysmark
2004SE”
Advanced desktop: “x86 processor baseret system
som scorer minimum 250 points under Sysmark
2004SE”
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AMD public sector EMEAI
CONFIDENTIAL
The Danish Ministry of Finance tender
•In January 2007 3 vendors is qualified for the following
mini-tenders under the Ministerial framework: Dell, HP
and Lenovo
•Two of the standard PC configs are AMD based and one
is Intel based, this is repeated in the advanced PC
category
•During 2007 the Ministry facilitates purchase of approx
40K AMD based systems and 5K Intel based systems
with fierce competition on each mini-auction
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AMD public sector EMEAI
CONFIDENTIAL
The Danish Ministry of Finance tender
•In 2008 the Sysmark values are kept at 200 for the
standard PC and 250 for the advanced PC
•On the first mini-auction of this year HP wins the bid for
6000 standard PC systems at a price of just over 12.1
mill Dkr
•An average price of 2.016 Dkr pr PC!
•Delivering incredible value for money!
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AMD public sector EMEAI
CONFIDENTIAL
Agenda
•Why Open hardware specs in public tenders?
•The Danish Ministry of Finance case
•What has been done by other EU member states?
•Open hardware specs and the benefits
•AMD energy efficient computing
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AMD public sector EMEAI
CONFIDENTIAL
Governments Are Enforcing VendorNeutral Contract Specifications
•Guidelines issued in 16 EU member states and 2
EFTA states:
France, UK, Ireland, Germany, Austria, Italy,
Lithuania, Netherlands, Belgium, Finland, Slovakia,
Czech Republic, Portugal, Norway, Greece,
Switzerland, Sweden and Denmark
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AMD public sector EMEAI
CONFIDENTIAL
Governments Are Enforcing VendorNeutral Contract Specifications
Sweden –May 2007
VERVA issues a PM stating that:
Att helt bortse från fabrikat och typ av processor och endast
beakta att datorn uppfyller ställda prestandakrav ger ökade
valfrihet för anbudsgivaren och därmed möjlighet till att lämna
bättre anbud.Vi har i ramavtalsupphandlingar krävt
prestandaredovisning med testprogram från följande
organisationer:
TPC (Transaction Processing Performance Council)
SPEC (The Standard Performance Evaluation Corporation)
BAPCo (Business Application Performance Corporation)
Gemensamt för nämnda organisationer är att de är oberoende,
representerar ett brett antal tillverkare, samt är icke
vinstdrivande.
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AMD public sector EMEAI
CONFIDENTIAL
Governments Are Enforcing VendorNeutral Contract Specifications
Germany-November 2007
Initial project commenced in September 2006 together with BITKOM and
the Procurement Agency of the Federal Ministry of the Interior
First guidelines published for Desktop PCs using BAPCO Sysmark 2004 SE
benchmark criteria for three categories:
– A: 190
– B: 230
– C: 270
y All guidelines are/will be published on www.itk-beschaffung.de –
including English versions
– Notebook guidelines to be finished in Q3 2008
– Start server guidelines in Q2 2008
y Green Public Procurement Guidelines:
– Cooperation with Federal Ministry for Environmental Affairs Germany
– Green Guidelines for Desktop PCs in progress; notebooks and servers to
follow in 2008
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AMD public sector EMEAI
CONFIDENTIAL
Governments Are Enforcing VendorNeutral Contract Specifications
Denmark-February 2008
The Danish Competition Authority publishes a “Guiding
Statement” on their website:
“En sammenligning af udstyr med forskellige typer processorer
ved hjælp af ”clock-rate” alene kan være misvisende som
indikator, fordi den samlede præstationsevne også afhænger af
andre egenskaber. I stedet kan de tek-niske specifikationer for
edb-udstyr ske på grundlag af uvildige instanser, der
fastlægger relevante benchmarks for udstyr på IT-området.
Derved undgår man, at bestemte producenters udstyr bliver
udelukket ved fastsættelsen af de tekniske specifikationer.
Ikke mærke-relaterede benchmarks fastlægges fortløbende af
flere uvildige faglige ekspertfora og ik-ke-profitsøgende
konsortier. Business Application Permance Corporation
(BAPCo) er et eksempel på et sådant konsortium, hvis
medlemmer bl.a. omfatter konkurrenter på området som fx.
AMD, Apple, Dell, Hewlett-Packard, Intel og Microsoft m.fl.”
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AMD public sector EMEAI
CONFIDENTIAL
Agenda
•Why Open hardware specs in public tenders?
•The Danish Ministry of Finance case
•What has been done by other EU member states?
•Open hardware specs and the benefits
•AMD energy efficient computing
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AMD public sector EMEAI
CONFIDENTIAL
Non-discriminatory tenders and the
benefits
•IDC PC Procurement survey, done by IDC Italy on
behalf of AMD, finds that there are clearly both
technology advantages and cost savings to be had
by using vendor neutral specifications.
•When asked what the perceived main benefits of
vendor neutral specifications where, 85% of the
questioned parties responded, that they would
expect economic benefits as well as technology
benefits.
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AMD public sector EMEAI
CONFIDENTIAL
Non-discriminatory tenders and the
benefits
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AMD public sector EMEAI
CONFIDENTIAL
Non-discriminatory tenders and the
benefits
•All potential suppliers compete on an equal footing
•Benchmarks guarantee a better balanced platform and
better overall platform performance
•Potential cost savings on procurement prices of
approximately 30 percent! This is according to the
findings of the European Commission
•Best value for money for the
contracting authority
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AMD public sector EMEAI
CONFIDENTIAL
Non-discriminatory tenders and the
benefits
Incentive to use well-balanced platforms
y By measuring performance of the system, Benchmarks ensure
better quality of all components
Easy to use for contracting authorities……
y Contracting Authorities do not have to buy or run benchmarks
y no increased costs connected to the use of benchmarks
…….and Bidders
y OEMs already internally benchmark their products
y Most benchmarks are easy to run
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AMD public sector EMEAI
CONFIDENTIAL
Feedback on the usage of Benchmarks
Hundreds of contracting authorities all across
Europe and the rest of the world already
successfully use benchmarks
OEMs say:
y HP (Ireland): «The adoption of benchmarks for public tenders enabled HP to
diversify its product pallette and therefore offer contracting authorities a highly
tailored solution resulting in better value for money»
The Office of Government Commerce (OGC) says:
“The OGC’s use of Benchmarks should be used as a best practice in IT Procurement”
Chris Chettle MCIPS
Commodities Project Manager IT Hardware & e-Auction, OGC
The NHS and local government authorities now purchases all its Desktop and Notebook IT
equipment using BAPCO Sysmark2004SE Benchmark to describe performance, this IS
done through the OGC E-Auctions
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AMD public sector EMEAI
CONFIDENTIAL
Agenda
•Why Open hardware specs in public tenders?
•The Danish Ministry of Finance case
•What has been done by other EU member states?
•Open hardware specs and the benefits
•AMD energy efficient computing
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AMD public sector EMEAI
CONFIDENTIAL
AMD Leadership
“Leading the World to
Energy-efficient Processing”
Leadership in Products based on
technologies that address the need to
optimize energy use
Leadership in Initiatives that address
improved energy-efficient solutions and
influence public policies
Sustainable Manufacturing
and Design
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Leadership in Operational Behaviors
that address responsibility related to
energy & the environment
AMD public sector EMEAI
CONFIDENTIAL
Energy Efficient Computing
AMD leads; according to our OEMs
Direction: Own credibility in all product segments
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AMD public sector EMEAI
CONFIDENTIAL
Products and Technologies
Expanding Our Value Proposition
Optimized for energy efficiency
• PowerNow!™, Cool'n'Quiet™, and
PowerXPress
• AMD Virtualization™ based on Direct
Connect architecture
Founding member of The Green Grid
• Develop a unified plan to address data
center power issues
Improving energy efficiency
• Recognized by Energy Star® for advancing
energy efficient computer technologies
• Co-authored server energy measurement
protocol with US EPA and industry partners
• First IT member of Alliance to Save Energy
Driving DTX PC standard
• Led development of open standard for
smaller, more energy-efficient PCs
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AMD public sector EMEAI
CONFIDENTIAL
Energy Efficiency is Quad-core
Increased Core Density
Next-generation
AMD PowerNow!™
Technology Provides
Enhanced Power
Management
AMD Virtualization™
Technology
Performance-per-watt
Leadership
Upgradeability
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AMD public sector EMEAI
CONFIDENTIAL
AMD Power Efficiency Innovation
Independent Dynamic
Core Technology
AMD CoolCore™ Technology
Same
Power/Thermals
As Dual-Core!
Dual Dynamic Power
Management™
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AMD public sector EMEAI
Enhanced AMD PowerNow!™
Technology
CONFIDENTIAL
Performance per Watt Scalability
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AMD public sector EMEAI
CONFIDENTIAL
Building The Green PC
AMD Processors + AMD Chipset & Graphics
AMD Processors
yThe first 45W dual core
desktop processors
+
AMD Chipset &
Graphics
yRobust, stable and energy
efficient – with exceptional
graphics experience
Low Idle Power @ 5.9W
~65 kWHr Energy Saving in a Year
for a Typical Commercial Desktop
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AMD public sector EMEAI
CONFIDENTIAL
The Green Grid Consortium
AMD acknowledged as a force in creating
158 companies in 1st year & growing
North America, Japan, EMEA - so far
Consolidating Metrics and Standards, Globally
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Month ##, 200#
AMD public sector
Presentation
Title EMEAI
CONFIDENTIAL
The Green Grid
AMD partnered with IT industry leaders,
U.S. EPA and the Alliance to Save Energy to
create the Green Grid consortium
A global consortium dedicated to developing models, metrics and
standards and promoting energy efficiency for data centers and
information services delivery
11 Board of Director Companies:
AMD, APC, Dell, HP, IBM, Intel,
Microsoft, Rackable Systems, SprayCool,
Sun Microsystems and VMware (EMC)
• Over 104 member companies
Current Working Groups
–
–
–
–
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Data
Data
Data
Data
Collection and Analysis
Center Technology and Strategy
Center Operations
Center Metrics and Measurements
AMD public sector EMEAI
www.thegreengrid.org
CONFIDENTIAL
A Global Concern: Energy Consumption
Koomey Studies Results:
Datacenter Energy Consumption
Electric use for
servers and
infrastructure
in WW in 2005:
120 billion
Kilowatt hours
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Electric bill for
servers and
infrastructure
in 2005:
$2.7billion US
$7.3billion WW
AMD public sector EMEAI
Aggregate
electrical
usage doubled
worldwide
from 2000 to
2005
CONFIDENTIAL
Comparison of Projected Electricity Use
by US Data Centers 2007-2011
Source: US EPA Data Center Study
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AMD public sector EMEAI
CONFIDENTIAL
Questions?
Per Bahr
Manager, Public Sector EMEAI
per.bahr@amd.com
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AMD public sector EMEAI
CONFIDENTIAL
Trademark Attribution
AMD, the AMD Arrow logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the United States
and/or other jurisdictions. Other names used in this presentation are for identification purposes only and may be trademarks
of their respective owners.
©2006 Advanced Micro Devices, Inc. All rights reserved.
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AMD public sector EMEAI
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