NVIDIA 2011 Annual Report Download - page 8

Revolutionize High Performance Computing with CUDA and Tesla. Tesla is a family of GPU computing products that delivers processing
capabilities for high-performance computing applications. NVIDIA CUDA is a general purpose parallel computing architecture that leverages the parallel
compute engine in NVIDIA GPUs to solve many complex computational problems in a fraction of the time required on a CPU. Our CUDA parallel
processing architecture can accelerate compute-intensive applications by significant multiples over that of a CPU alone. We are working with developers
around the world who have adopted and written application programs for the CUDA architecture using various high-level programming languages, which can
then be run at significant execution speeds on a CUDA-enabled GPU. With CUDA, we are able to speed up general purpose compute-intensive applications
as we do for 3D graphics processing. Developers are able to speed-up algorithms in areas ranging from nano molecular dynamics to image processing,
medical image reconstruction and derivatives modeling for financial risk analysis. We are also working with universities around the world that teach parallel
programming with CUDA as well as with many PC OEMs that offer high performance computing solutions with Tesla for use by their customers around the
world. Researchers also use CUDA to accelerate their time-to-discovery, and many popular off-the-shelf software packages are now CUDA accelerated.
Advance Mobile Computing with Best-in-Class Ultra-Low Power System-On-Chip Processors. We believe the synergy created by the combination of 3D
graphics, HD video and the Internet will fundamentally change the way people work, learn, communicate and play. We believe that our expertise in HD
graphics and system architecture positions us to help drive this transformation. We are using our expertise in the processing and transmission of high-
bandwidth digital media to develop products designed to address the requirements of high-bandwidth concurrent multimedia. By developing 3D graphics,
HD video and media communications solutions that provide superior performance and address the key requirements of these platforms, we believe that we
will accelerate the adoption of next generation smart phones and tablets.
Use Our Intellectual Property and Resources to Enter into License and Development Contracts. From time to time, we expect to enter into license
and royalty arrangements that may require significant customization of our intellectual property components.
Sales and Marketing
Our worldwide sales and marketing strategy is key to our objective to become the leading supplier of programmable, high-performance GPUs and ultra-
low power mobile system-on-a-chip products. Our sales and marketing teams work closely with each industry’s respective OEMs, ODMs, system builders,
motherboard manufacturers, add-in board manufacturers and industry trendsetters, collectively referred to as our Channel, to define product features,
performance, price and timing of new products. Members of our sales team have a high level of technical expertise and product and industry knowledge to
support the competitive and complex design win process. We also employ a highly skilled team of application engineers to assist our Channel in designing,
testing and qualifying system designs that incorporate our products. We believe that the depth and quality of our design support are keys to improving our
Channel’s time-to-market, maintaining a high level of customer satisfaction within our Channel and fostering relationships that encourage customers to use
the next generation of our products.
In the segments we serve that purchase our GPUs, the sales process involves achieving key design wins with leading OEMs and major system builders and
supporting the product design into high volume production with key ODMs, motherboard manufacturers and add-in board manufacturers. These design wins
in turn influence the retail and system builder channel that is serviced by add-in board and motherboard manufacturers. Our distribution strategy is to work
with a number of leading independent contract equipment manufacturers, or CEMs, ODMs, motherboard manufacturers, add-in board manufacturers and
distributors, each of which have relationships with a broad range of major OEMs and/or strong brand name recognition in the retail channel. In the CPB
segment that we serve, the sales process primarily involves achieving key design wins directly with the leading handheld OEMs and supporting the product
design into high-volume production. Currently, we sell a significant portion of our processors directly to distributors, CEMs, ODMs, motherboard
manufacturers and add-in board manufacturers, which then sell boards and systems with our products to leading OEMs, retail outlets and a large number of
system builders.
Although as a result of our Channel strategy, a small number of our customers represent the majority of our revenue, their end customers include a large
number of OEMs and system builders throughout the world. Sales to our largest customer, Quanta Computer Incorporated, accounted for 12% of our total
revenue for fiscal year 2011.
To encourage software title developers and publishers to develop games optimized for platforms utilizing our products, we seek to establish and maintain
strong relationships in the software development community. Engineering and marketing personnel interact with and visit key software developers to promote
and discuss our products, as well as to ascertain product requirements and solve technical problems. Our developer program makes certain that our products
are available to developers prior to volume availability in order to encourage the development of software titles that are optimized for our products.
6