NVIDIA 2016 Annual Report Download - page 154

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Enabling visual computing platforms in key focus areas. We believe that we are well-positioned to use our
expertise in visual and parallel computing to make contributions in four key markets where our visual computing
expertise is valued:
-Gaming: Our strategy is to use advanced graphics technologies to create a range of gaming platforms,
stretching across PCs, mobile devices and the cloud.
-Professional Visualization: Our strategy is to serve as our customers' most trusted graphics partner,
working closely with independent software vendors to optimize their offerings for NVIDIA GPUs.
-Datacenter: Our strategy is to serve growing demand for deep learning, big-data analytics and scientific
computing.
-Automotive: Our strategy is to utilize Tegra’s visual computing capabilities to augment the driving
experience, as well as leverage our significant supercomputing capabilities to accelerate autonomous
driving.
Sales and Marketing
Our worldwide sales and marketing strategy is key to achieving our objective of providing markets with our high-
performance and efficient GPUs and mobile SOC products. Our sales and marketing teams, located across our global
markets, work closely with each industry's respective original equipment manufacturers, or OEMs, original device
manufacturers, or ODMs, system builders, motherboard manufacturers, add-in board manufacturers, or AIBs, retailers/
distributors 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 our customers and partners to
use the next generation of our products.
As a result of our Channel strategy, a small number of our customers represent the majority of our revenue. Sales to
ASUSTeK Computer Inc., accounted for 11% of our total revenue for fiscal year 2016.
To encourage software title developers and publishers to develop games optimized for platforms utilizing our products
and enterprise applications optimized for our GPUs, 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 applications and game titles that are optimized for our products.
As NVIDIA’s business has evolved from gaming to broader areas and from chips to platforms, so, too, have our avenues
to market. SHIELD products, such as our gaming tablet and Android TV device, are sold through e-tail channels and through
some of the world’s largest retailers.
Backlog
Our sales are primarily made pursuant to standard purchase orders. The quantity of products purchased by our customers
as well as our shipment schedules are subject to revisions that reflect changes in both the customers' requirements and in
manufacturing availability. The semiconductor industry is characterized by short lead time orders and quick delivery
schedules. In light of industry practice and experience, we believe that only a small portion of our backlog is non-cancelable
and that the dollar amount associated with the non-cancelable portion is not significant.