Intel's "lifeline": the head of the company officially announced the change of the business model

Source: informationweek.com

Intel CEO Brian Krzanich outlined a new development strategy for the company in his message . The company's specialists decided that it was necessary to abandon the paradigm in which the sales of PCs were the main driver of business development. According to IDC, in 2014, global sales of computers fell by 2.1%, in 2015, the reduction is estimated at 6.2%. Instead, the CEO is proposing to focus on providing solutions for data centers and the Internet of Things infrastructure.

Recently, cloud technologies are becoming more and more widespread. Therefore, one of the company's strategic objectives will be the adaptation of the architecture to virtualized environments and software-defined technologies.
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Brian Krzanich plans to focus on analytic systems and big data: “We will increase the power and value of analytics through ongoing innovations in productivity, big data, and machine learning abilities.”

One of the main trends of the future Krzanich considers the Internet of things, which implies connecting to the cloud all the surrounding objects - from clothes to cars and houses. Intel will focus on IoT technology in autonomous vehicles. According to the head of the company, traditional PCs and mobile devices can also be viewed as components of the Internet of Things ecosystem.

The third direction is the development of technologies such as 3D XPoint memory, Rack Scale Architecture and FPGA .

To transfer a huge amount of data in the “Internet of Things” world and cloud services, fast and reliable wireless channels will be required. Therefore, the fourth direction will be the development of fifth-generation mobile communications (5G). It is expected that 5G technology will be standardized in 2018, and the deployment of commercial networks will begin in 2020.

In the development strategy of the company will follow the law of Moore. Now Intel plans to introduce 10-nanometer production technologies, and in the future the transition to the standards of 7, 5 and less nanometers will be implemented.

In 1975, one of the founders of Intel, Gordon Moore, discovered a pattern that consists in the fact that every 24 months the elements of microcircuits are halved, which made it possible to increase the computing power by increasing the number of transistors. Moore's law was repeatedly foretold death, it is strictly observed to this day.

Despite the fact that Intel believes in the relevance of Moore's law, developers will soon face the physical limits of semiconductor technologies, the achievement of which will force us to look for fundamentally different options for building microchips. It is likely that some other devices, possibly exploiting the phenomena of quantum physics, will take the place of transistor switches.

Intel's latest financial report for the first quarter of 2016 was associated with massive reductions within the company. According to official data, about 11% of employees (12 thousand people) from divisions from all over the world will fall under cuts.

The decision to reduce looks quite logical - for the next year, Intel published a very low-key forecast for revenues, which turned out to be less than originally planned by analysts of the company.

In connection with the change of strategy, Intel will restructure. This requires additional costs of $ 1.2 billion in the second quarter, but the company hopes to save $ 750 million in this way by the end of this year and $ 1.4 billion by the middle of next year.