Transcript Title of Presentation Goes Here

Investing in
Convergence
Mark Christensen
Corporate Vice President &
Managing Director, Intel Capital
Communications Sectors
October 2003
Agenda
 Intel Capital Overview
 Intel Technology Directions
–The Digital Home
–Enterprise
–Mobility
 Case Study: WiFi
Four Pillars of Intel Strategy




Architecture
Manufacturing
Brand
Investments
Build ecosystems
Market development
Foster silicon technology
Scout new technologies
Intel Capital
 World’s Largest Corporate Strategic Investor
 Investment Managers Operating in 25
countries on 5 continents
– ~40% of investments in 2003 to date outside US
 Manage Equity, M&A transactions, Internal
Seeds and Spinouts
 Co-investor with leading VCs
Strategic
Intel
Capital
Financial
Intel Focus Areas
Investing in Convergence
U.S. Consumer
Electronics Spending
2003
$120B
2002
$94B
Digital Home Inflection Point




All Devices and content going digital
Broadband going mainstream
Home network ease of deployment
Powerful client systems with large
storage capacity
 CE moving to horizontal model
CE Moving Horizontal
Traditional
Emerging
OEMs/Channel
Consumer
Electronics
(Sony,
Samsung,
Matsushita,
Etc.)
ODMs
Applications/Content
Middleware
Operating System
Component
Technology
Investments
To Date:
Digital Home Working Group
Intel Digital Home Direction
The PC
Integrates CE
Capability
The Media
Gateway
TV Tuner
Content
Intel “MyRoom”
Concept PC
PVR
Network
FM Radio
Ref Designs
DRM
ODM
Image enhancement
Open Source SW
815E IP D-STB
Silicon Powers
the Digital Home
Imaging
Processors
Chipsets
Graphics
Comm
PC Processor
& Chipsets
MXP5800
Datacenter Vision
CLIENTS
NETWORKING
SERVERS
STORAGE
Intel’s Enterprise Business
CHIPSETS
BOARDS
SYSTEMS
INTEL CAPITAL
SOFTWARE
SOLUTIONS
BLUEPRINTS
INTEL®
SOLUTIONS
SERVICES
DEVELOPER
SERVICES
SOFTWARE VENDOR
ALLIANCES
Itanium Architecture Momentum
®
Hewlett Packard
Compaq
NEC
Unisys
Hitachi
SGI
IBM
Bull
Fujitsu
Fujitsu Siemens
Sun
Power
SPARC
Time
The Strength of the Roadmap
Robust Itanium® Software Ecosystem Today
Enterprise
Resource
Planning
Business
Intelligence
Security
Other
Supply Chain
Management
Applications
Management
Databases
Variety of major ISVs in production today,
400+ more in production & many others slated for 2H’03
Operating
Systems
With Windows Server 2003 announcement, broad range of major OSs in production
Tools
44 tools for developing applications for Windows
12 tools for developing applications for HP-UX
39 tools for developing applications for Linux
6 flavors of Intel compilers
8 Intel® Performance tools
Intel® Developer Services
Robust set of development tools & services for commercial & custom apps
Mobility
Worldwide WiFi shipments (Thousands of Units)
50,000
July 2003
40,000
Intel® Centrino™
Mobile Technology
Debuts
30,000
December 2002
20,000
“Centrino’s introduction is not just another
product launch but a milestone in the
adaptation of computers into our lives.“
10,000
- Aberdeen Group
0
2002
2003
2004
Source: InStat, 7/03
2005
2006
GRAPHICS
AZALIA
SERIAL ATA
ICH6
CODEC
Extended
Mobile Access
PCI Express
Simplified
Network Selection
ICH6
CODEC
Location-based
Computing
EXTENDED
BATTERY LIFE
Dothan: 2H’04
Next Generation Process and Performance
Strained Silicon
140 Million Transistors
2MB power efficient L2 Cache
90nm Process Technology
Case Study: WiFi
“Intel to invest $150M in
wireless technology firms”
Wall Street Journal – 10/02
WiFi Investment Framework
Area
Drive
Infrastructure
Remove
Barriers/Drive
New Usage
Complement
Silicon
Focus
Sample
Investments
 Viable public WLAN
infrastructure models
 iPass
 Aggregation of disparate
network infrastructure
 Cometa
 Reduce barriers to adoption:
security, ease-of-use,
roaming, range
 Bluesocket
 Stimulate new usage: VoIP
 Telesym
 Component technologies that
enhance Intel silicon products
 STSN
 Transat
 Vivato
 Sychip
 CSR
 SiRF
Over $40M invested in ~20 companies
Top 10 WiFi Trends
1. Enterprise user adoption
2. WiFi invades the home
3. Public access: hot spots to hot zones
4. Convergence with cellular & landline
5. WiFi meets handhelds
6. Voice over WiFi
7. Smart antennas/range extension
8. Smart infrastructure
9. More spectrum, better aligned
10. WiMax
Unwire.
10. WiMax Addresses Backhaul
2
3
RESIDENTIAL & SoHo
DEVELOPING COUNTRIES
(e.g., Eastern Europe)
802.16
1
ALWAYS BEST CONNECTED
802.11
BACKHAUL
802.16
802.11
BACKHAUL for
HOTSPOTS
802.11
802.11
4
Summary
 Intel Capital is a focused strategic investor
with resources and global reach
 WiFi is like the Internet itself…a disruptive,
bottoms-up revolution
 Convergence is here – horizontal model for
consumer electronics and unwired mobility
are the drivers