Dual-Core Chips Power Intel Product-Line Shakeup

By John G. Spooner  |  Posted 2005-05-05 Print this article Print

The chip maker aims to improve its desktop and server platforms for businesses by rolling out technologies ranging from dual-core processors and virtualization to baked-in systems management technology, executives say at the company's annual financial ana

These days, notebooks are hotter than desktops. But Intel has a plan to keep businesses interested in the bigger boxes. The chip maker, whose executives briefed financial analysts on Thursday afternoon, aims to improve its desktop and server platforms for businesses—and its financials to boot—by rolling out technologies ranging from dual-core processors and virtualization to baked-in systems management technology. Intel reorganized itself into five product-oriented business groups in January, allowing it to target new areas such as the digital home and health care as well as emerging markets.
But the new focus will help the company create desktops and servers that are more compelling for businesses, the executives said, therefore opening up the potential to gain greater shares of the more mature markets.
Intels Digital Enterprise Group is in charge of developing platforms for desktops and servers, while notebooks and cellular phones fall to its Mobile Group. Click here to read about Intel reorganizing itself around platforms. Thanks to Intels new strategy, Paul Otellini, its president and soon to be its CEO, predicts that the chip maker will continue to grow by double digits this year, using its multicore processors and things such as virtualization technology as jumping off points to build new product platforms. If Intel achieves the double-digit mark this year, it would mark the third consecutive year it has done so. "For us to be successful, we need to invest and deliver products that can grow the market … grow our average selling price and grow our share of wallet of that particular computer," Otellini said. Intels first major platform effort was Centrino, the bundle that paired its Pentium M processor with a chip set and wireless module. Centrino proved fruitful in that it increased Intels share of wallet—or the amount of money it gets when manufacturers purchase the parts they need to build a notebook—in that market, Otellini said. Thus, its become "the template for what we want to do in the other platform areas. You can see the future of computing if you just look at our org chart," he said. Next Page: The digital office platform.

John G. Spooner John G. Spooner, a senior writer for eWeek, chronicles the PC industry, in addition to covering semiconductors and, on occasion, automotive technology. Prior to joining eWeek in 2005, Mr. Spooner spent more than four years as a staff writer for CNET News.com, where he covered computer hardware. He has also worked as a staff writer for ZDNET News.

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