The Most Hypocritical Smoke-Blowing of 2008
Rahul Sood of HP/VoodooPC occupies a pretty central roll in our industry as one of the most vocal and well-known voices from the boutique community. His is a compelling story, from entrepeneur to big business, and that resonates with a lot of people. But, man, has that gone to his head. Be it self-indulgent soapboxing about the automotive industry or a diary of his exploits with extreme RC helicopters and monster trucks, Rahul has perfected the art of highfalutin. I can look past all of that, but the recent hypocritical grandstanding about innovation in the gaming PC market just hits too close to home to ignore.
Rahul's recent blog post cites the changing economic landscape and decrees that "adapting" to current market conditions is the only way to survive. Always insightful, obviously HP/Voodoo is following this course, so Rahul goes on to allude to what this means by talking about the death of the high-end, value for your dollar, etc yada etc. If you cut through all of this Jobs-esque smoke and mirrors, what you get to is that is HP is releasing a new mainstream/value gaming system at CES and Rahul wants you to be really excited about that. Heck, I'm very interested to see that product, and I agree whole-heartedly with the model (after all, this is not a new topic for anyone in the PC industry, including myself). But, wow, how does Rahul write a puffed up post like this, completely ignoring the realities of his business as it currently stands:
Rahul: "The gaming PC as we know it is doomed... There was a time when a gamer would slap down his credit card and buy a maxed-out configuration just to eke out a few more frames per second."
Reality: It's only been a few months since Voodoo put out the $10K-$13K Omen, which is probably the most expensive consumer PC in the world. I recently called it one of the most irrelevant systems in the industry today, and apparently Rahul now agrees with me.
Rahul: "There was a time when selling high-end hardware was easy, because we believed in it. Now we’re retooling and retasking our configurations so they make sense; let’s face it, high-end hardware has delivered diminishing returns in terms of value... The PC with four GPUs, a 2-kilowatt power supply, 16 gigabytes of memory, and a stack of hard drives is all but distant memory, at least for the PC gamer."
Reality: HP/Voodoo is right this moment selling machines with four GPU's, a 1300watt PSU, 8GB of memory, and 5 hard drives.
Rahul: "Yes, some cataclysmic changes are coming in this industry. For those of you wondering what will happen to the boutique space, I would suggest that unless the boutiques see the light, there won’t be much of a space left."
Reality: Voodoo is no longer a boutique, so Rahul's going to call the whole boutique segment lost. Nevermind that many boutiques have been selling into the mainstream, with thoughtful configurations, for quite a while now. Please don't decide that you're going to change your tune, Rahul, then call it innovation.
The doublespeak is unbearable. This isn't the first time, and I'm not the only one who's had enough of this stuff (Nate from NordicPC wrote this scathing piece earlier this year about Voodoo's "integration" into the larger HP). But, hey, at least Rahul knows that he can always get a job at Apple.
Update:
Details for the afformentioned market-changing product have been "leaked" to Engadget. The gist is this : It's small and it's got dual MXM graphics cards. A decent config in a good looking, small package. I love the size, but... MXM graphics cards are expensive, MXM-on-desktop boards are non-standard (expensive), and it's watercooled. This is all says to me that this isn't going to be a real solid price/performance product, it's more of a relatively-powerful-in-a-small-package-but-not-cheap product. In other words, a laptop without all the benefits of a laptop? The way Rahul writes, this is the only product in the HP/Voodoo portfolio that actually matters in this market... good luck!
Labels: Biz



26 Comments:
As much as it kills me to admit this, Ed, I agree with you 100%. It's awesome how quickly Rahul has turned stooge to HP, one month touting the remarkably "innovative" and insanely expensive Omen (which by the way, doesn't appear to actually be purchasable anywhere, not that there's a market for it anyway), the next month proclaiming the ultra high end PC "dead." Really, bro? Really?
PS- Awesome drinking game: read Rahul's blog and take a drink every time he uses the word "innovation".
Haha, it kills you, huh.
I think it's pretty clear that your jealous of their products. As a Blackbird owner I can tell you that its the best pc that I have ever owned next to my Mac laptop. I can't wait to see this next desktop, if the price is right I'll be buying one for sure.
What does my alleged product-envy have to do with any of this? Stick to the facts : You'd buy this machine over your Blackbird? That's incredible -- not sure it's a compliment to the Blackbird, though.
I think you hit the nail on the head with price, though, which will certainly make or break this. If it's laptop priced (being comprised of laptop components), it's a bomb for sure.
Good point on the price, depending on specs I would want to pay under $2500 or something like that I think.
Oh ya I would buy this machine over a Blackbird if it was quieter and cheaper. I don't have room for a Blackbird on my desk (only under), and my GF gets mad because it's in our room. I guess we will see soon enough if I would buy one or not.
@Anonymous-price-comment-guy : There is no market for this at $2500, and that's what I would be scared of if I were them. At $2500, you COULD be buying a serious gaming rig. Because this is a desktop, you've got price it against desktops, regardless of its size. People will pay for better form factors and quieter products, but not at a massive premium. This thing needs to start at a grand, seriously.
@Anonymous-blackbird-alternative-comment-guy: Again, depending on price, there are better performing, and inherently cheaper machines than this, that are also small and quiet. We'll see, we'll see.
Thank you thank you thank you for giving this topic some attention. I also read Rahul's post and found it to be disturbing. Although the point by point comparison is great to show the flaws and hypocrisy, it is the underlying issue that really irks me: What Rahul is advocating here is the "innovation" (read: abolition) of the boutique.
The boutiques have a niche because consumers want a quality product with quality service and are willing to pay a premium for it.
Let's look at what boutiques really do:
The boutiques take the responsibility of "bridging the gap" between the various component manufacturers and the customer. For the boutiques this means providing a product (and support for that product) to the customer with little or no support from their suppliers (the people who make the products). What really bothered me was what I perceived as bullying the boutiques to lower prices, reduce overhead, and decrease support/quality-assurance? Basically, it sounds harsh but it felt like the HP sellout saying: "Come with me if you want to live". There are way too many HPs, Dells, etc... already.
p.s. that came out a bit more rant-ish than I was hoping. Hopefully, my point isn't lost.
I disagree, I think what Rahul is advocating is that boutiques stand together and wake up or die. He has consistantly shown his committment to the boutique companies, at least the one that I work at and I know a couple of the owners hang out with him at events. He is a very nice guy from my dealings with him, usually those who have bad things to say have never met him or had a conversation with him. Try sending him an email sometime I bet he'll respond quickly.
@J: Yes, I'm sure Rahul is a great person and all that, but again, let's just stick to the facts: Voodoo is not a boutique anymore, nor does Rahul have any "commitment" to "the boutiques" whatsoever. If you work at a boutique SI and think Rahul has some place in his heart for your company, wake up bro. Further, let's just also be clear that although us boutiques have a respect for each other, when we go to market there is no "standing together". It's war!
And yes, I am personally in touch with the owners of quite a few of the boutiques, and do hang out in that circle at industry events. Apparently you might be surprised to know that Rahul doesn't make much of an appearance at those functions anymore. That's OK, more chow for me.
ugh all i can say is the cases are kinda cool on the firebird and blackbird, other than that i have nothing to say.
oh and merry Christmas Ed.:)
Funny thing that Rahul writes that. I own a "Boutique" in the Netherlands and a lot of my customers say they will not buy their high end computers at HP or Dell anymore.
So i totally agree with Rahul: get out of the high end buisness and leave it to the company's that can serve that segment well.
PS: no slowing buisness at our company, actually the oppposite is true: we build more and to our big surprise "bigger" machines.
PSS: merry Christmas
Well based on your reply to me I emailed Rahul on and it looks like he responded. I think his latest blog is direct at you Ed,
http://www.rahulsood.com/2008/12/happy-holidays-everyone.html
Thanks for the heads up, J, I went over and took a look. Rahul seems to be addressing his post to "someone" who is "blindly flaming [him] and posting anonymous comments everywhere". I do not ever post anonymously, anywhere, and am very forthright and public with my views right here. Looks like I'm probably not the only one with the negative opinion. Not surprised.
As far as the rest of it... I honestly can say I got nothing from that. More smoke-blowing, really.
Go back and read my post, the first two points still stand. As far as my last point about the boutiques, well, I guess Rahul did "address" that, but the whole thing is a crock, man.
Read these quotes from his new post, and bask in the hyperbole:
"There is a strong need for 'boutique' companies to stay competitive in order to keep things interesting."
"I would say that we are very supportive of small businesses and big thinkers."
"I don't believe it makes sense for us to carry the weight of something like this ourselves. I believe if more people are interested in the vision then we should work together to help move the industry."
These are empty, baseless sentiments. Explain to me how any of that makes sense applied to the realities of business on the planet Earth. Good luck.
I agree with Rahul 100%. Boutiques have survived because of niche markets like gaming. Now the big oems have figured this out and they are only going to get better at it. The days of a slow moving oem are gone. you will see oems try more creative designs and create markets. They will begin to embrace the boutique mentality. The firebird is a perfect example. Its something unique that only a HP could do. Frankly I'm tired off the boutique offerings. They are all the same parts!
@Last-anonymous-poster-guy : You put it extremely, extremely well, and I agree with you 100%. That line of thought is exactly what I'm working on right now, and we think we're close to bridging that gap ourselves (we're a boutique sitting on top of a quarter billion dollar infrastructure -- big enough to do great things, small enough to be more agile than a multi-national OEM). As far as your specific points about boutiques vs. OEM, I wrote along a very similar line a few months ago, although I still think the "boutique" is a viable model for many, many customers:
http://www.edbordenblog.com/2008/08/non-proprietary-hardware-means-high.html
http://www.edbordenblog.com/2008/08/key-to-craftmanship-and-quality-in-si.html
And as far as Rahul goes, his comments are so saturated with PR nonsense and inconsistencies that I don't think he said anything meaningful at all, which is what makes it obvious cannon fodder. You articulated the idea in 20 words, he POSSIBLY alluded to it in 1000, but mostly just sounded like he was speaking at Macworld. That's his fault.
A big infrastructure doesn't equal an awesome product. A big infrastructure is just more monkeys turning screwdrivers. Only a company like HP can approach an intel or a nvidia ask them to build a firebird. My question is how you plan to do something truly innovative without have the economies to get the big players involved?
First of all, I never said a big infrastructure = an awesome product. After all, HP and Dell are great examples. They might have $billions$ of engineering resources, but look how they spend it. Obviously you can't "buy" innovation, nor can you conjure it up by using the word every 10 seconds whenever you are speaking or writing.
Monkeys turning screwdrivers = economies of scale, and when coupled with the best QC and manufacturing processes in the country, you produce high-quality, consistent products. And since I'm going to make that claim, I might as well say that we're a joint venture with Seneca Data.
A big infrastructure (billions$ not needed) also equals engineering resources and relationships, and when you couple THAT with smart vision, you product great products.
As far as your comment about NVIDIA and Intel re: the Firebird, you are incorrect. Intel and NVIDIA do not only work for HP and Dell. Not sure what experience you've got with that, but you don't grow a successful company in tech by ignoring the channel. Not sure there's much more to say about it. Furthermore, I doubt Intel or NVIDIA is the one who engineered the Firebird.
This whole conversation is getting off topic, though. I don't need to defend my own business to critique Rahul's grandstanding. Whether my ideas or opportunities are better or worse than his doesn't change his hyperbole.
@Anonymous
You think HP approached NVIDIA? I do believe it was the other way around, my friend. We wanted to do this when I was at MAINGEAR but couldn't afford the tool-up to make it happen.
diferent anonymous guy here, but to chris hp approached Nvidia, I know this I work at Nvidia 8@
Not that I'm calling you a liar, other-anonymous-poster-guy (or maybe I am), but anonymous confirmation is the same as no confirmation.
I really work at Nvidia. I think so anyway. I know the true story. Projects like the firebird are always a collaboration between both companies.
I was reading the previous threads and I tend to agree with the last couple anonymous posts. Large technology companies in the PC technology space will only do custom work If there is a solid business plan behind it. Which means some level of committment from the company asking for the custom work. It's just the business reality.
Anyway, Ed I look forward to your project.
I'm not even sure what we're talking about anymore. The Firebird was a joint project between NVIDIA and HP. OK.
Let's just remember this original post was written before details of the Firebird were released, and the premises still stand. The merits of the product itself might just need their own post I guess.
Hehehe, Tri - I do know that you know what you know. But did you know that I knew that you know that you knew?
But you nailed it right on the head - there has to be a business case.
My point is that HP is not the end-all prophet of technology. Many ideas bubble up from the little guys and are scooped up by the bigger guys who can afford it.
Chris, you r right about that last one, in the case of HP they bought the little guy and are coming up with neat stuff now. Did you see the latest rumors on firebird? Its badass!
@yetanotheranonymous
Yes, I knew all but the name of the Firebird. That's the point.
http://www.morleydigital.com/2008/12/31/the-rahul-sood-reality-distortion-field/
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