Rambus' Gorilla intentions
Reading through Rambus documents that were recently unsealed by the judge in the Hyundai litigation, I was impressed by the conclusion in their 1992 Business Plan (prepared by still CEO Geoff Tate) and its uncanny similarity to what we now know as Gorilla characteristics.
Here is the link:
rambusite.com
Go to page 99 on the pull down menu.
Page 16 is Business Plan cover page.
I've re-typed it here so all errors are mine.
Conclusion
Rambus
-has a unique, proprietary, high-value-added breakthrough technology
-addresses a huge market
-solves a widespread, major need
-has very high barriers to direct competition
-and has a highly leveraged business model that uses the financial resources of industry giants.
So clearly Rambus understood the value of a proprietary discontinuous innovation ("breakthrough technology") in a mass market protected by high BTE ("very high barriers to direct competition"). As an IPR company, they have openly licensed (or agreed to license) all the DRAM memory makers. And they have established a powerful value chain beyond the memory makers that includes, but is not limited to, Intel, Sony, EMC, Vitesse, Panasonic, Sun, Dell, Compaq, Gateway, H-P, IBM, NEC and Nintendo. Microsoft may be added to that list with its upcoming X-Box video game console.
What has impressed me most about Rambus is its "teamwork" with fellow Gorilla Intel. Intel is so dependent on Rambus technology that it is paying cash in the forms of rebates to PC makers and capital incentives to memory makers to promote Rambus DRAM and ensure its full adoption as the next standard memory. Of course, Rambus is equally dependent on Intel, but it is able to leverage the capital of its fellow Gorilla instead of making the huge capital outlays itself. I can't think of another example of Gorilla cooperation as powerful as this. Are we witnessing the birth of Ram-tel?
For those interested in following Rambus, I recommend the board at TMF or Rambusite.com in lieu of SI (too many paid shills, IMO).
Regards,
Jeff |
