Intel officially bid farewell to the PC. CEO Brian Krzanich announced that they began a complete change of focus, while the PC remains a secondary plan.
The new strategy is based on five main elements. In short, Intel will shift to cloud services and smart devices that will be part of the Internet of Things. Krzanich adds that the PC is just one of these devices, not the main goal, as before.
Intel invests in CODE2040
Intel is already developing chips and services for a variety of technologies. Krzanich points servers, data centers, smart devices, autonomous vehicles, memory and 5G networks as part of the company’s strategy. Furthermore, Intel will also address technologies to improve production and factories.
Krzanich adds that about 40% of Intel’s revenue come from other businesses of the company beyond the PC, and they generate about 60% of the margin. Cloud services will have a pivotal role. Like Microsoft, Intel sees this as a major source of revenue, mainly by offering powerful processors for servers.
Another item will be virtualization, which again includes a powerful hardware to handle large volumes of information, and even higher performance requirements when it comes to data analysis. Intel will try to increase the presence of its components in the data center across processors.
The current core of the company – the processors for mobile phones and PCs will become part of the overall strategy. Intel will continue to try to adhere to Moore’s Law, which describes mostly as an economic law. “We watched four proclamations of Moore’s Law as dead. We plan to prove that he was actually alive and in good health,” said Krzanich.