By: Jamie Davies
Intel has outlined a new business strategy to capitalize on new trends within the industry including cloud technology, IoT and 5G.
Speaking on the company’s blog, CEO Brian Krzanich outlined the organizations new strategy which is split into five sections; cloud technology, IoT, memory and programmable solutions, 5G and developing new technologies under the concept of Moore’s law.
“Our strategy itself is about transforming Intel from a PC company to a company that powers the cloud and billions of smart, connected computing devices,” said Krzanich. “But what does that future look like? I want to outline how I see the future unfolding and how Intel will continue to lead and win as we power the next generation of technologies.
“There is a clear virtuous cycle here – the cloud and data centre, the Internet of Things, memory and FPGA’s are all bound together by connectivity and enhanced by the economics of Moore’s Law. This virtuous cycle fuels our business, and we are aligning every segment of our business to it.”
Krzanich believes virtualization and software trends, which are apparently redefining the concept of the data centre, aligns well with the Intel business model and future proposition, through the company’s position in the high-performance computing food chain. Through continued investment in analytics, big data and machine learning technologies, the company aims to drive more of the footprint of the data centre to Intel architecture.
The company’s play for the potentially lucrative IoT market will be built on the phrase of ‘connected to the cloud’. Intel has highlighted it will focus on autonomous vehicles, industrial and retail as our primary growth drivers of the Internet of Things, combining its capabilities within the cloud ecosystem to drive growth within IoT.
While were a number of buzzwords and trends highlighted throughout Krzanich’s post, Moore’s Law appeared to receive particular attention. While generally considered a plausible theory, Moore’s Law itself would appear to be underplayed within the industry, a point which Krzanich did not seem to agree with.
“In my 34 years in the semiconductor industry, I have witnessed the advertised death of Moore’s Law no less than four times,” said Krzanich. “As we progress from fourteen nanometer technology to ten nanometer and plan for seven nanometer and five nanometer and even beyond, our plans are proof that Moore’s Law is alive and well. Intel’s industry leadership of Moore’s Law remains intact, and you will see continued investment in capacity and R&D to ensure so.”
Krzanich’s comments provide more clarity to last week’s announcement on how it would be restructuring the business to accelerate its transformation project, and also it quarterly earnings. The data centre and Internet of Things (IoT) businesses would appear to be Intel’s primary growth engines, delivering $2.2 billion in revenue growth last year, and accounting for roughly 40% of revenue across the period.
The transformation project itself is part of a long-term ambition of the business, as it aims to move the perception of the company away from client computing (PCs and mobile devices) and towards IoT and the cloud. The announcements over the last week have had mixed results in the market; following its quarterlies share price rose slightly, though has declined over the subsequent days.