Intel CEO Brian Krzanich has outlined the company’s latest strategy following the decision to cut 12,000 jobs globally.
Cloud, Internet of Things (IoT), memory and programmable solutions, 5G and Moore’s Law will be the corner stone of the Intel strategy. The new strategy shows that Intel is cutting down on its reliance on PC and related devices. It is betting big on Cloud and IoT-driven businesses.
“The cloud and data center, the Internet of Things, memory and FPGAs are all bound together by connectivity and enhanced by the economics of Moore’s Law,” said Brian Krzanich.
The data center and Internet of Things (IoT) businesses are Intel’s primary growth engines, with memory and field programmable gate arrays (FPGAs) accelerating these opportunities – fueling a virtuous cycle of growth for the company. These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40 percent of revenue and the majority of operating profit, which largely offset the decline in the PC market segment.
Cloud and data center
Virtualization and software are defining infrastructure in the cloud and data center, which plays to strengths of Intel. Intel aims to drive data center to Intel architecture. There is much more value to unlock from the cloud and data center, and analytics is the key to that. Intel will accelerate the value of analytics by innovating in high-performance computing, big data and machine learning capabilities.
The Internet of Things encompasses all smart devices – every device, sensor, console and any other client device – that are connected to the cloud. Intel will focus on autonomous vehicles, industrial and retail as primary growth drivers of the Internet of Things. Intel views core Client business of PCs and mobile as among the many variations of connected things.
Memory and programmable solutions
Intel is in the process of developing advanced technologies such as Rack Scale Architecture, 3D XPoint memory, FPGAs and silicon photonics. Intel aims to bring more innovations and products to the cloud and data center infrastructure.
As the world moves to 5G, Intel will lead because of its technological strength to deliver end-to-end 5G systems, from modems to base stations to all the various forms of connectivity that exist today and will exist tomorrow.
Moore’s Law is fundamentally a law of economics, and Intel will confidently continue to harness its value. The law says that we can shrink transistor dimensions by roughly 50 percent at a roughly fixed cost, driving twice the transistors for the same cost.