NVIDIA 2008 Annual Report Download - page 11

Our objective is to be the leading supplier of performance GPUs, MCPs and computer - on - a - chip products that support netbooks, PNDs, PDAs, PMPs,
cellular phones and other handheld devices. Our current focus is on the desktop PC, professional workstation, notebook PC, high
- performance computing,
application processor, multimedia
- rich cellular phone and video game console product lines, and we plan to expand into other product lines. Our strategy to
achieve this objective includes the following key elements:
Build Award
- Winning, Architecturally - Compatible 3D Graphics, HD Video, Media Communications and Ultra - Low Power Product Families for the PC,
Handheld and Digital Entertainment Platforms. Our strategy is to achieve market segment leadership in these platforms by providing award
- winning
performance at every price point. 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 3D graphics and rich digital media.
Target Leading OEMs, ODMs and System Builders. Our strategy is to enable our leading PC, handheld and consumer electronics OEMs, ODMs and
major system builder customers to differentiate their products in a highly competitive marketplace by using our products. We believe that design wins with these
industry leaders provide market validation of our products, increase brand awareness and enhance our ability to penetrate additional leading customer accounts.
In addition, we believe that close relationships with OEMs, ODMs and major system builders will allow us to better anticipate and address customer needs with
future generations of our products.
Sustain Technology and Product Leadership in 3D Graphics and HD Video, and Media Communications and Ultra
- Low Power. We are focused on
using our advanced engineering capabilities to accelerate the quality and performance of 3D graphics, HD video, media communications and ultra
- low power
processing in PCs and handheld devices. A fundamental aspect of our strategy is to actively recruit the best 3D graphics and HD video, networking and
communications engineers in the industry, and we believe that we have assembled an exceptionally experienced and talented engineering team. Our research and
development strategy is to focus on concurrently developing multiple generations of GPUs, including GPUs for high
- performance computing, MCPs and mobile
and consumer products that support netbooks, PNDs, PMPs, PDAs, cellular phones and other handheld devices using independent design teams. As we have in
the past, we intend to use this strategy to achieve new levels of graphics, networking and communications features and performance and ultra
- low power designs,
enabling our customers to achieve superior performance in their products.
Increase Market Share. We believe that substantial market share will be important to achieving success. We intend to achieve a leading share of the
market in areas in which we don't have a leading market share, and maintain a leading share of the market in areas in which we do have the lead, by devoting
substantial resources to building families of products for a wide range of applications that offer significant improvement in performance over existing products.
Use Our Expertise in Digital Multimedia. 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.
Use our Intellectual Property and Resources to Enter into License and Development Contracts. From time to time, we expect to enter into license
arrangements that will require significant customization of our intellectual property components. For license arrangements that require significant customization of
our intellectual property components, we generally recognize this license revenue using the percentage
- of - completion method of accounting over the period that
services are performed. For example, in fiscal year 2006, we entered into an agreement with Sony Computer Entertainment, Inc., or SCE, to jointly develop a custom
GPU for SCE ’ s PlayStation3. Our collaboration with SCE includes license fees and royalties for the PlayStation3 and all derivatives, including next - generation
digital consumer electronics devices. In addition, we are licensing software development tools for creating shaders and advanced graphics capabilities to SCE.
Revolutionize computing with CUDA and Tesla. Tesla is a family of GPU computing products that delivers processing capabilities for high
- performance
computing applications, and marks our entry into the high
- performance computing industry. 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. We believe
we are in an era of GPU computing, where 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 to adopt and write application programs for the CUDA architecture using C, one of the
most widely used high
- level programming languages, which can then be run at great execution speeds on a CUDA enabled processor. We expect other languages
to be supported in the future, including FORTRAN and C++. With CUDA, we are able to speed up general purpose compute
- intensive applications like 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 who now teach parallel programming
with CUDA and we are also working with many PC OEMs who now 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 popular off - the - shelf software packages are now CUDA accelerated.
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