NVIDIA 2013 Annual Report Download - page 152

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optimized for gamers - GPUs and software, mobile SOCs, value-added solutions such as GeForce Experience and TegraZone,
differentiated devices like SHIELD, and technologies and appliances for high-quality streaming in GRID.
Revolutionize Computing with the Parallel Processing Capability of the GPU. NVIDIA CUDA is a general purpose
parallel computing platform that leverages the thousands of massively parallel processors inside an NVIDIA GPU to solve
many complex computational problems in a fraction of the time required by a CPU and at a fraction of the power consumption.
We work with developers worldwide who write programs for the CUDA platform using various high-level programming
languages. Developers are able to accelerate applications in areas ranging from molecular dynamics to image processing,
derivatives modeling for financial risk analysis and big data analytics.
Extend our Visual Computing Leadership into Mobile and Cloud Computing Platforms. Mobile, cloud and SaaS are
driving changes in the computer industry. We believe visual computing will be a key component in this new computing
paradigm. We want to enable interactive graphics applications like games, movie and photo editors, and design software to
be accessed from any computer and from anywhere. We also believe that the user experience in VDIs, such as those enabled
by Citrix and VMware, should be indistinguishable from traditional, non-virtual, environments.
Leverage our Processors and Visual Computing Expertise to Create Differentiated Devices. We leverage our
significant R&D depth and scale to create differentiated products, including SHIELD. SHIELD is intended to attract modern
gamers who want to play on open platforms. We believe SHIELD also enhances the strategic position of Tegra, for example,
by attracting more games to TegraZone, which will in turn make every Tegra-powered device more enjoyable.
Use Our Intellectual Property and Resources to Enter into License and Development Contracts. We believe our
intellectual property portfolio is a valuable asset than can be monetized by licensing our technology to customers that desire
to build such capabilities directly into their own products. Such license and development arrangements may further enhance
the reach of our graphics and mobile technology.
Sales and Marketing
Our worldwide sales and marketing strategy is key to our objective to become the leading supplier of high-performance
and efficient GPUs and mobile SOC products. Our sales and marketing teams work closely with each industry's respective
original equipment manufacturers, or OEMs, original design manufacturers, or ODMs, system builders, motherboard
manufacturers, add-in board manufacturers, or AIBs, 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 markets 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 AIBs. These design wins in turn influence the retail and system builder channel that is
serviced by AIB and motherboard manufacturers. Our distribution strategy is to work with a number of leading independent
contract equipment manufacturers, or CEMs, ODMs, motherboard manufacturers, AIBs and distributors, each of which
have relationships with a broad range of major OEMs and/or strong brand name recognition in the retail channel. Currently,
we sell a significant portion of our processors directly to distributors, CEMs, ODMs, motherboard manufacturers and AIBs,
which then sell boards and systems with our products to leading OEMs, retail outlets and a large number of system builders.
In the Tegra Processor segment that we serve, the sales process primarily involves achieving key design wins directly with
the leading mobile OEMs and supporting the product design into high-volume production.