Investing in Investing in ConvergenceConvergence
Mark ChristensenMark ChristensenCorporate Vice President & Corporate Vice President &
Managing Director, Intel Capital Managing Director, Intel Capital Communications SectorsCommunications Sectors
October 2003October 2003
AgendaAgenda
Intel Capital OverviewIntel Capital Overview Intel Technology DirectionsIntel Technology Directions
–The Digital HomeThe Digital Home
–EnterpriseEnterprise
–MobilityMobility
Case Study: WiFiCase Study: WiFi
Four Pillars of Intel StrategyFour Pillars of Intel Strategy
ArchitectureArchitecture ManufacturingManufacturing BrandBrand InvestmentsInvestments Build ecosystems
Market development
Foster silicon technology
Scout new technologies
Build ecosystems
Market development
Foster silicon technology
Scout new technologies
Intel CapitalIntel Capital World’s Largest Corporate Strategic InvestorWorld’s Largest Corporate Strategic Investor Investment Managers Operating in 25 Investment Managers Operating in 25
countries on 5 continentscountries on 5 continents– ~40% of investments in 2003 to date outside US~40% of investments in 2003 to date outside US
Manage Equity, M&A transactions, Internal Manage Equity, M&A transactions, Internal Seeds and SpinoutsSeeds and Spinouts
Co-investor with leading VCsCo-investor with leading VCs
Strategic FinancialIntelCapital
IntelCapital
Intel Focus AreasIntel Focus AreasInvesting in ConvergenceInvesting in Convergence
20022002$94B$94B
20032003$120B$120B
U.S. ConsumerU.S. Consumer ElectronicsElectronics SpendingSpending
Digital Home Inflection PointDigital Home Inflection Point
All Devices and content going digitalAll Devices and content going digital Broadband going mainstream Broadband going mainstream Home network ease of deploymentHome network ease of deployment Powerful client systems with large Powerful client systems with large
storage capacitystorage capacity CE moving to horizontal modelCE moving to horizontal model
CE Moving HorizontalCE Moving Horizontal
Operating SystemOperating System
MiddlewareMiddleware
Applications/ContentApplications/Content
Component Component TechnologyTechnology
OEMs/ChannelOEMs/Channel
ODMsODMsConsumerConsumerElectronicsElectronics
(Sony, (Sony, Samsung, Samsung, Matsushita,Matsushita,
Etc.)Etc.)
TraditionalTraditional EmergingEmergingInvestmentsInvestments
To Date:To Date:
Digital Home Working GroupDigital Home Working Group
Intel Digital Home DirectionIntel Digital Home Direction
The PC The PC Integrates CE Integrates CE
CapabilityCapability
PC ProcessorPC Processor& Chipsets& Chipsets
TV TunerTV Tuner
PVRPVR
FM RadioFM Radio
Intel “MyRoom”Intel “MyRoom”Concept PCConcept PCNetworkNetwork
ContentContent
The Media The Media GatewayGateway
Ref DesignsRef Designs
Silicon Powers Silicon Powers the Digital Homethe Digital Home
815E IP D-STB815E IP D-STB
MXP5800MXP5800
Open Source SWOpen Source SW
DRMDRM
Image enhancementImage enhancement
ImagingImaging
GraphicsGraphicsChipsetsChipsets
CommComm
ProcessorsProcessors
ODMODM
Datacenter Vision Datacenter Vision
SERVERS STORAGECLIENTS NETWORKING
Intel’s Enterprise BusinessIntel’s Enterprise Business
CHIPSETSCHIPSETSBOARDSBOARDS
SYSTEMSSYSTEMS
SOFTWARESOFTWARE
DEVELOPERDEVELOPERSERVICESSERVICES
SOFTWARE VENDORSOFTWARE VENDORALLIANCESALLIANCES
INTELINTEL®®
SOLUTIONSSOLUTIONSSERVICESSERVICES
SOLUTIONSSOLUTIONSBLUEPRINTSBLUEPRINTS
INTEL CAPITALINTEL CAPITAL
ItaniumItanium®® Architecture Momentum Architecture Momentum
Hewlett PackardCompaqNECUnisysHitachiSGIIBMBullFujitsuFujitsu SiemensSun
PowerPower
SPARCSPARC
Time
The Strength of the RoadmapThe Strength of the Roadmap
Robust ItaniumRobust Itanium®® Software Ecosystem Today Software Ecosystem Today
ToolsTools
ApplicationsApplications
6 flavors of Intel compilers6 flavors of Intel compilers8 Intel8 Intel®® Performance tools Performance toolsIntelIntel®® Developer Services Developer Services
44 tools for developing applications for Windows44 tools for developing applications for Windows12 tools for developing applications for HP-UX12 tools for developing applications for HP-UX39 tools for developing applications for Linux39 tools for developing applications for Linux
Robust set of development tools & services for commercial & custom appsRobust set of development tools & services for commercial & custom apps
With Windows Server 2003 announcement, broad range of major OSs in productionWith Windows Server 2003 announcement, broad range of major OSs in production
Operating Operating SystemsSystems
Variety of major ISVs in production today, Variety of major ISVs in production today, 400+ more in production & many others slated for 2H’03400+ more in production & many others slated for 2H’03
DatabasesDatabases
Business Intelligence
Enterprise Resource Planning
Supply Chain Management
Security Other
ManagementManagement
Source: InStat, 7/03
0
10,000
20,000
30,000
40,000
50,000
2002 2003 2004 2005 2006
IntelIntel®® Centrino™ Centrino™ Mobile TechnologyMobile Technology
DebutsDebuts
“Centrino’s introduction is not just another product launch but a milestone in the adaptation of computers into our lives.“ - Aberdeen Group
July 2003July 2003
December 2002December 2002
Worldwide WiFi shipments (Thousands of Units)Worldwide WiFi shipments (Thousands of Units)
Mobility Mobility
ICH6ICH6
CODECCODEC
ICH6ICH6
CODECCODEC
GRAPHICSGRAPHICS
AZALIAAZALIA SERIAL ATASERIAL ATA
EXTENDEDEXTENDEDBATTERY LIFEBATTERY LIFEPCI ExpressPCI Express
ExtendedExtendedMobile AccessMobile Access
SimplifiedSimplifiedNetwork Network
Selection Selection Location-Location-basedbased
ComputingComputing
Dothan: 2H’04Dothan: 2H’04Next Generation Process and Next Generation Process and
PerformancePerformance
140 Million Transistors140 Million Transistors
Strained SiliconStrained Silicon
2MB power efficient L2 Cache2MB power efficient L2 Cache
90nm Process Technology90nm Process Technology
Case Study: WiFiCase Study: WiFi
“Intel to invest $150M in wireless technology firms”
Wall Street Journal – 10/02
WiFi Investment FrameworkWiFi Investment Framework
Viable public WLAN infrastructure modelsViable public WLAN infrastructure models Aggregation of disparate network Aggregation of disparate network
infrastructureinfrastructureDriveDrive
InfrastructureInfrastructure
SampleInvestmentsArea Focus
iPassiPass STSNSTSN CometaCometa
Reduce barriers to adoption: Reduce barriers to adoption: security, ease-of-use, roaming, security, ease-of-use, roaming, rangerange
Stimulate new usage: VoIPStimulate new usage: VoIP
RemoveRemoveBarriers/DriveBarriers/Drive
New UsageNew Usage
BluesocketBluesocket TransatTransat VivatoVivato TelesymTelesym
Component technologies that Component technologies that enhance Intel silicon productsenhance Intel silicon products
ComplementComplementSiliconSilicon
SychipSychip CSRCSR SiRFSiRF
Over $40M invested in ~20 companiesOver $40M invested in ~20 companies
Top 10 WiFi Trends Top 10 WiFi Trends
1.1. Enterprise user adoptionEnterprise user adoption
2.2. WiFi invades the homeWiFi invades the home
3.3. Public access: hot spots to hot zonesPublic access: hot spots to hot zones
4.4. Convergence with cellular & landline Convergence with cellular & landline
5.5. WiFi meets handheldsWiFi meets handhelds
6.6. Voice over WiFiVoice over WiFi
7.7. Smart antennas/range extensionSmart antennas/range extension
8.8. Smart infrastructureSmart infrastructure
9.9. More spectrum, better alignedMore spectrum, better aligned
10.10. WiMaxWiMax
Unwire.Unwire.
10. WiMax Addresses Backhaul10. WiMax Addresses Backhaul
BACKHAUL1
3
DEVELOPING COUNTRIES(e.g., Eastern Europe)
RESIDENTIAL & SoHo
BACKHAUL for HOTSPOTS
2
4ALWAYS BEST CONNECTED
802.11
802.16
802.11
802.11
802.11
802.16
SummarySummary
Intel Capital is a focused strategic investor Intel Capital is a focused strategic investor with resources and global reachwith resources and global reach
WiFi is like the Internet itself…a disruptive, WiFi is like the Internet itself…a disruptive, bottoms-up revolutionbottoms-up revolution
Convergence is here – horizontal model for Convergence is here – horizontal model for consumer electronics and unwired mobility consumer electronics and unwired mobility are the drivers are the drivers