Declassifying Inte’s future plans from the CEO’s CES key note address
Intel Chief Executive Officer Brian Krzanich will take the stage at the International Consumer Electronics Show with the message that the chipmaker will do what it takes to remain relevant as consumers switch to mobile devices for computing tasks.
Krzanich, who will make a keynote presentation at the trade show in Las Vegas, is set to feature a first public showing of some of the mobile and wearable technology from Intel’s New Devices division, led by former Apple executive Mike Bell. Krzanich could also emphasise how Intel has accelerated the pace at which it brings new products to market.
The world’s largest chipmaker, which dominates the market for semiconductors that run traditional computers, is seeking to branch out as consumers increasingly use smartphones and tablets that don’t contain Intel processors. With the personal-computer market forecast to decline for a third consecutive year and Intel failing to win significant market share in phones, Krzanich is working to ensure that the company doesn’t miss new opportunities such as wearable devices and other personal technology.
“PCs are slowing so you have to offset that with something else,” said Patrick Wang, an analyst at Evercore Partners in New York.
The Santa Clara, California-based company, which Krzanich took over in May, remains heavily dependent on servers and PCs. Intel has more than 80% of the market for PC processors and more than 95% share in server chips, according to researcher IDC. In November, the company forecast that sales will be about the same as the $52.6 billion it will report for 2013, below the $53.7 billion analysts were projecting.
Since becoming CEO, Krzanich, a former semiconductor factory manager, has taken steps to diversify Intel’s business. He has said Intel will focus on providing what the market wants in chips rather than following the company’s traditional method of designing and producing products aimed at determining the direction of technology. In addition, the company’s plants, which Intel says are the industry’s most advanced, may produce chips for rivals, he said.
“However the market moves, wherever the compute need is, we want our products to do it best,” Krzanich said at a meeting at the company’s headquarters. “We’d become insular. We’d become focused on what was our best product rather than where the market was moving.”
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The 53-year-old also has said he’s speeding up the time it takes from design to production of new chips and concentrating efforts on lower-power products. Intel has a new processor called Quark, which it’s trying to get into everything from household appliances to industrial equipment.
Krzanich’s openness to producing chips for other companies and to listening to what his customers want is a departure from predecessor Paul Otellini, who had said smartphones and tablets wouldn’t replace PC, says Stacy Rasgon, an analyst at Sanford C Bernstein & Co. “They had their head in the sand,” said Rasgon. “Their push now is to make sure they don’t get blindsided again.”
The CEO, who like his five predecessors was an internal appointment, may need to go further to make what Intel produces central again. While wearable devices could become the next billion-unit market, according to Rasgon, Intel isn’t fast enough at rolling out new products.
Wang said Intel’s factories might be its best bet for getting into new markets. The company will spend $11 billion this year on plants and equipment to maintain its lead in transistor technology. Intel said it is more than a year ahead of competitors in the manufacturing of the fundamental component of all semiconductors.
To participate in the market for smartwatches, glasses and the internet of things, where Intel has no track record in designing chips that are better than alternatives, the company should open its factories to rivals such as Qualcomm, which are more likely to win, said Wang. But that’s a step further than Krzanich may be ready to take.
Reported from Economic Times Article under the topic: CEP Chips in with Intel everywhere
With 25 million tablets selling of in Q2, 2012 globally, tablets could very well have arrived as the third device in the mobile stack – PC and smartphone being the first two devices. But do we find productivity yet on the tablets? Or would they always remain as consumption devices?
Tablets aren’t really new. They’re big PDAs. We do calendaring, note taking, alarms, and notifications on tablets — but so could a PDA, all the way back to the Newton. We’ve been using this kind of touch-based organizer for over a decade at the executive level (remember the clumsy tablets from Microsoft?). They’re coming into their own stride, but we still struggle with leveraging them for productivity.
Many IT professionals are wondering how tablets are going to affect the enterprise. We’re all trying to work out if, when, and how these devices are going to impact our work. However, I’m not sure we’re asking the right questions about these devices. Given that customized, purpose-driven appliances and tablets are the best answer to the ever increasing productization requirements, the case is still largely inconclusive. We (Marketers in general) are all over the place trying to figuring out how to leverage mobile platforms. We’re looking desperately for a use model. This lack of a definite conclusion reflects the entire industry.
The classic innovation and monetization syndrome is that if we don’t innovate and implement this exciting new technology, our competitors will — but don’t worry, they’re as uncertain about how to proceed as we are.
Coming back to the use cases of Tablets for the enterprises, I see two major tablet applications:
- Better mobile connectivity than PDAs. In particular, tablets are able to give a more feature-rich browsing experience and reasonable email communication. They also tend to work better with web apps like OWA than previous mobile devices.
- Ability to design and deploy custom native apps.
The trouble seems to be one of convergence and transition. We’re transitioning from a desktop OS, application-based, business productivity environment — Office, Outlook, PowerPoint, and local applications running on a traditional PC. We use server-based back office, HR, and business processes platforms. Those are behind on developing meaningful mobile options, and they don’t yet rival traditional desktop PC methods in features and convenience. The value add of having a mobile device is offset by the limitations, where it’s an option.
Another driver is the convergence of cloud technologies and mobile devices. Public clouds make enterprises nervous, private clouds lose a lot of the supposed benefits of public clouds, and IT seems reluctant about adopting any cloud. But mobile devices are cloud pods. They’re lightweight devices designed to buzz around the cloud — gathering, creating, sharing, or moving information. Storing my private music and movies on the cloud is one thing, and storing my critical corporate IP there is another. The personal digital assistant part of the PDA is becoming a reality with Now and Siri, but we’re asked to place a lot of trust in allowing a cloud to collect meaningful information about us. Without that, we can’t reap the benefits of these solutions.
The enterprise challenge is that these mobile consumer devices take away the granular control of a PC. Ultimately, things are still sorting themselves out for tablets in the enterprise. It’s still very difficult to see where these technologies might take us.
Maybe Microsoft may have a few answers!
Convergence has been the buzz word for a good part of the last decade and will continue to do so in this decade as well. However, for the discerning the definition or at least the meaning of convergence has now shifted from device convergence to technology convergence. The later being the superset of which devices are just another maifestation. So earlier its was the camera, the mobile phone, the GPS, the MP3 player and other such device charecterestics that really converged. However, in the present context it is the convergence of enabling technologies and the three big technologies that seem to be convergent at this time are: Mobility, Cloud Services and Big Data.
However, it is a relatively small lynchpin that drives the convergence of these three mega trends. Small in terms of what it is, but large in terms of the innovation spurts that it provides. The key here is APIs or Application programming Interfaces. APIs tie together the mega-trends in a fundamental and unalterable way. APIs are the lingua franca of the new wave in internet of all things combined with super mobility and seamless connectivity. In my mind, each of these three technology trends (on their own) will be on the fast track to commoditization and will risk facing the same fate as did most social business software plays. The magic and the premiums will come from contextual application of this innovation and smart integration.
To stake a few examples, Box.net as storage without document and device sync and collaboration is commodity. Apple’s iCloud as storage without ubiquitous local and iTunes media sync across devices is commodity. And Google Drive (as discussed here in Ben Kepes’ CloudU community) is also a commodity business not worth getting into had it not been for Google’s services such as Google Apps, Piccasa, and its media and unified communication capabilities under the Google Plus brand.
The premiums from big data, mobile access and cloud comes from
a) dynamically assembled media and content, and interpreted data in the cloud,
b) available wherever you need to consume and / or collaborate and
c) insanely focused and simple interfaces to complex backends.
Thats where money would be made in these commoditized services. APIs provide the integration through the value creation network. The only other differentiator in this case being experience!
Data is big… just how big is something that isnt expressed in numbers really! Not at least till you have the metaphors of data in the context of common understanding. In this post today, i feature a presentation from Cisco’s Dave Evans. Apart from the data metaphors, it is amazing to see how our lives will change in next 10 years due to technology advancements.