Intel CEO: 12 Megatrend Game Changing Opportunities

Getting Ahead Of Next Generation Opportunities

Intel President and CEO Paul Otellini talked about next-generation solution provider opportunities including Sandy Bridge based Intel processors (due in the first quarter), the McAfee security acquisition and other game-changing opportunities in a wide ranging COMDEXvirtual session titled "IT Megatrends: Powering The Next Generation of Computing."

Here are 12 big IT trends that Otellini singled out and why, in his own words, they will have a big impact on solution providers in 2011.

Sandy Bridge - Intel's Next Generation Processor

"What this product was engineered for was the optimized video visual experience. And I think that things that would take you minutes to do on our latest chip that we are shipping today will be seconds on Sandy Bridge in terms of video compression. It really is a revolution in this [video] area. And when you look at the integration of the graphics [on a single chip] it just makes it even better. The world is moving to smaller devices. Battery life matters. Here we can pack a fabulous punch into a classic form factor without any compromise.


The Connected Device Upsell Opportunity

"I think the reseller channel has a brighter future than they have had in the past four or five years. I am not just saying that, given the audience. I really believe that. The opportunity to upsell has never been better in the classic computing space -- both in consumer and business computing. The ability to now sell a whole variety of connected devices that are increasingly smarter, that add Internet capabilities, that will work well and seamlessly with each other is going up. The people that do home theater systems will see better product at a lower price. For people doing enterprise connectivity or productivity applications, better products at today's prices."

The Intel Tablet Game Plan

"There are a class of applications and users particularly inside of businesses that will evolve to adapt a tablet form factor. It is a much more friendly for sitting in a meeting when you want to share something. A tablet is a much more collaborative interface. I think you'll see applications develop in that genre.

There is stuff shipping now in small volume out of Cisco and AT&T. You'll see more [Intel processor-based tablets] coming next year on Windows, MeeGo and Android."

The McAfee Security Upsell Opportunity

"Our intent is not to change the business model, the sales practices, the terms and conditions, the products, the branding. All that stays the same for the foreseeable future. What we are doing now though is working to make their products work better with our products -- the silicon side of it -- and have a deep collaboration between the two. For the resellers I think that allows for an upsell that you don't have today that is better than what you have today."

The Intel Architecture Support For Rival Security Platforms

"We will continue to support Symantec Norton and Microsoft. We'd be crazy not to. What I point people to is the Wind River acquisition we did about a year ago. Most of Wind River's revenue -- then and now -- is not based upon Intel's architecture. It is based upon variants of other architectures: MIPS and ARM and so forth. We didn't change any of that. We maintained their commitment to open architecture. We are doing the same for McAfee."

Intel's Next-Generation Consumer Electronics Acquisition Assault

"We have [acquisition] strategies that are focused on moving Intel and Intel architecture and chips into new areas like phones, like tablets, like televisions, consumer electronics ... etc. As we do that -- even in the core PC space -- we still have holes. You have technology holes or business opportunity holes that we need to fill. If we don't decide to fill them internally, great. If we decide to buy a company to fill that hole, even better. That allows us to move faster. That is the business model you have seen Intel act upon the last three or four years."

The Consumerization Of IT Security Threat Opportunity

"When someone walks [into a company] with a machine from the outside, you are bringing in things that are on that machine. There may be good things. And there may be bad things. The good things are what the consumer likes about it. The bad things may be an unknown Trojan or something that is buried in there. You need to have that capability to inspect those and make sure you don't wreck your small and medium business network. The same problem exists for large businesses."

The Cloud Opportunity

"We have re-architected parts of our server line in the blade and rack area to be able to do more optimization for cloud-centric applications. You'll see us continuing to do that. And those products are channel friendly from the get go. How the channels take advantage of that really depends on the company. I think some people will be happy just providing hardware. Some people will take a step higher in terms of abstraction and maybe provide cloud based services on their own."

The Channel Stickiness Factor

"It is about creating a value-add in terms of service capability and an on-going stickiness in terms of relationship with the accounts, which the channel is excellent at and excels at in this industry. It's that high-touch capability. No one else can do that. To the extent that we can help you get services -- which may include software, may include hardware, may include cloud-based applications -- that allows you to service your customer and create a stickiness that is ongoing."

The Intel App Opportunity

"The plan is that our customers, whether you are Acer or Dell or Best Buy or Staples or a reseller, you can have access to this kind of a [write once run anywhere applications] framework, become sort of a virtual franchisee, put up your own storefront and use either the applications out of the catalog or ones you may want to create on your own for your customers for the capability you need to deliver for them. We have about 1,000 apps now up and running, more coming everyday."

The Intel Atom Opportunity

"The first product was aimed at creating the netbook market, the nettop market, and it has done very well. I think this year we will see something like 40 million netbooks shipped. A big number -- roughly three or four times more than tablets. You'll see in 2011 phones and net-tablets based upon Atom,derivatives of the same chip moving into consumer electronics."

The Google TV Opportunity

One of the highest-profile uses of Atom is Google TV, initially launched with Sony, Logitech and Best Buy. I can assure you going into 2011 you'll see many, many more hardware vendors adopting that framework. So all of a sudden TVs are now made smart courtesy of Atom."