Category Archives: Intel

Arquitecturas i386, i486, i586, i686, i786

En los paquetes podemos encontrar que esta compilado para 32 bits usando i386 o i586 generalmente.

La diferencia radica en el set de instrucciones que usa el binario. Las diferentes generaciones son:

  • i386: Intel i386/80386 (1985) y AMD386 (1991)
  • i486: Intel i486/80486 (1989) y AMD486 (1993)
  • i586: Intel Pentium (1993) y AMD-K5 (1996)
  • i686: Intel Pentium Pro (1995) y AMD-K6 (1997)
  • i786: Intel Pentium 4 (2000) y AMD-K7 (1999)

Tags: ,

Intel Builders Summit 2016 – Barcelona

As luck would have it, Intel is hosting several events based around their Intel Builders initiative here in Barcelona, and I was lucky enough to score a day pass in between VMworld and OpenStack Summit!  The agenda is packed with some good material, but I’m most excited to hear Gene Kim’s Keynote: Top DevOps Enterprise Adoption Patterns: A Fifteen Year Study Of High Performing IT Organizations.

Intel Builders

Gene is the author of 2 of the 3 essential DevOps books that I need to read:  1) The Phoenix Project, 2) The DevOps Manual and 3) Continuous Delivery.  During the welcome remarks phase, Intel announced that they have created an online “Builders University” for Cloud, Networking and Storage.  Here you can train (for free!) on the latest technologies in these 3 areas.  Check it out!

Some additional takeaways:

Puppet annually puts out a “State Of DevOps” report, read 2016 here: https://puppet.com/resources/white-paper/2016-state-of-devops-report

Per Gartner: top cloud challenges: 11% Technological, 23% Business, 66% People & Process

Some do’s and don’ts for moving your company to the cloud:

Do’s:

  • Have a clear vision of your cloud platform
  • Stay close to core/truck
  • Get buy-in & participation from early adopters
  • Plan Day 2 ops early
  • Employ Agile Architecture Approach (AAA)
  • Use the wins of your early adopters to drive expansion

Don’t:

  • Try to be everything to everyone
  • Force people to adopt before they are ready
  • Build a cloud without understanding the workloads
  • Do a “Big Bang” approach -> iterate

OpenStack Summit starts tomorrow.  We’re going to be doing 70+ videos in 3 days, so wish me luck!

 

By Chris Williams, Enterprise Architect

Intel digs deep into wallet to buy its way into AI game

AI-Artificial-Intelligence-Machine-Learning-Cognitive-ComputingVirtual reality may well have been capturing the imagination of the industry in recent months, but Intel’s $400 million of AI start-up Nervana highlights it’s not all fun and games, reports Telecoms.com.

Having set its position as a leader in the data centre market and then largely missed out on the smartphone revolution, it would appear Intel is determined not to miss out on the burgeoning IoT segment, with the Nervana purchase added more firepower to the company’s efforts. The acquisition also highlights the importance of artificial intelligence to the development of the technology industry.

“Intel is a company that powers the cloud and billions of smart, connected computing devices,” said Diane Bryant, GM of the Data Center Group at Intel. “Thanks to the pervasive reach of cloud computing, the ever decreasing cost of compute enabled by Moore’s Law, and the increasing availability of connectivity, these connected devices are generating millions of terabytes of data every single day. The ability to analyse and derive value from that data is one of the most exciting opportunities for us all. Central to that opportunity is artificial intelligence.”

The IoT revolution is coming whether we like it or not, and with it will come such vast amounts of data. Due to the volume, it will beyond comprehension for humans to develop insight from the information. Current data analytics tools and processes could be described (at best) as adequate, though this is before the surge in connected devices. Statista estimates the number of connected devices will grow from 18.2 billion in 2015, through to 50.2 billion in 2020. The devices themselves will also improve, increasing the amount of information which can be collected individually, which will lead to a tidal wave of data to be analysed.

If it is assumed to be immensely difficult or more likely impossible to analyse this data and turn it into actionable insight, what is the point in collecting it in the first place. This is the justification of artificial intelligence. Using such technologies to undertake more rudimentary decision making capabilities brought about through data analysis, or presenting insight to the more complex decisions to business leaders, is where the value of artificial intelligence will be felt. If cloud computing enables the IoT revolution, artificial intelligence will make sure it’s not a waste of time or money.

For a notable proportion of the population, AI is likened to Terminator or other such doomsday stories. But as Bryant notes below, the applications of AI will stretch throughout the life of a consumer, but perhaps more importantly, the business, manufacturing and services world.

“While artificial intelligence is often equated with great science fiction, it isn’t relegated to novels and movies,” said Bryant. “AI is all around us, from the commonplace (talk-to-text, photo tagging, and fraud detection) to the cutting edge (precision medicine, injury prediction, autonomous cars). Encompassing compute methods like advanced data analytics, computer vision, natural language processing and machine learning, artificial intelligence is transforming the way businesses operate and how people engage with the world.”

The acquisition does answer a question raised by Telecoms.com a couple of weeks ago. During early July, Intel announced a new initiative with BMW and Mobileye to drive forward the development of autonomous vehicles. The initiative showed potential, though should BMW are to supply the cars, Intel the chips and Mobileye the detection capabilities, have the body, the muscles and the eyes, but not the brain/AI to bring it all together. This Nervana acquisition in theory completes the circle and provides the intelligence aspect of the car.

Artificial intelligence has the potential to shape the technology industry moving forward, and it would appear this is a view which is shared by the major players. Google has acquired nine AI firms, including Deepmind for $625 million, Twitter has four major acquisitions, most recently Magic Pony for $150 million, Salesforce has acquired two AI start-ups already this year and Apple reported bought Turi for $200 million. The money being spent to gain the upper hand in this sub-sector is beginning to rival the early days of cloud computing.

Intel grows despite the PC continuing its slow decline

IntelIntel has reported 3% growth, including a 5% boost in its data centre business, though the client computing unit continues its slow decline, reports Telecoms.com.

The company’s efforts to redefine itself are seemingly beginning to pay dividends as a 3% year-on-year decline to $7.3 billion in the client computing business unit was offset by healthy performances elsewhere in the organization. The data centre unit brought in $4 billion in revenues, up 5%, whereas IoT accounted for $572 million, an increase in 2%, and the security portfolio grew 10% to $554 million for the quarter. The Programmable Solutions group also saw a 30% boost to $465 million. Overall quarterly earnings grew 3% to $13.5 billion.

“Our top line results for the quarter came in right in line with outlook, and profitability this quarter exceeded our expectations,” said Brian Krzanich, Intel CEO. “Year-over-year growth this quarter was 3% overall, as we transform Intel into a company that powers the cloud and billions of smart connected devices. We continue to focus on growth in line with this transformation, as evidenced by results in the data centre, IoT, and Programmable Solutions business this quarter.”

Looking forward, the team is forecasting Q3 will bring in revenues of roughly $14.9 billion, which would represent 3% year-on-year growth. Client computing is expected to continue its decline in the high single digits, while double-digit growth is anticipated in the data centre business, funded by cloud players in the second half of the year. CFO Stacy Smith believes growth in the IoT, data centre and memory businesses will counteract any negative impact of client computing.

While the data centre business continues to demonstrate growth for Intel, overnight trading saw share price decline by 3% following the earnings announcement. Investors were anticipating higher growth levels for the data centre group, as Intel forecasted double digit growth previously.

Intel’s efforts to redefine the focus and perception of the business has been ongoing for some time, as the personal computing market segment, Intel’s traditional cash cow, has continued to erode. Back in April, Krzanich outlined the company’s future focus on the company blog, which is split into five sections; cloud technology, IoT, memory and programmable solutions, 5G and developing new technologies under the concept of Moore’s law.

“Our strategy itself is about transforming Intel from a PC company to a company that powers the cloud and billions of smart, connected computing devices,” said Krzanich in the blog entry. “But what does that future look like? I want to outline how I see the future unfolding and how Intel will continue to lead and win as we power the next generation of technologies.

“There is a clear virtuous cycle here – the cloud and data centre, the Internet of Things, memory and FPGA’s are all bound together by connectivity and enhanced by the economics of Moore’s Law. This virtuous cycle fuels our business, and we are aligning every segment of our business to it.”

While the IoT business only grew 2% year-on-year, it would be worth noting this is off the back of a healthy Q1 which saw the unit grow 22%. Krzanich linked the Q2 performance, which was below the teams expectations, to an inventory burn following a strong performance in the first quarter. The team now anticipate double-digit growth through the remainder of 2016.

This was also the second consecutive quarter in which the security portfolio was listed as a separate business unit, previously being incorporated into the software and services unit. The group itself has demonstrated healthy growth over the course of 2016, but has been the topic of speculation surrounding a sale.

Only last month the team were rumoured to be considering a sale of its security business, which was created following the $7.6 billion acquisition of antivirus specialists McAfee in 2010. Although security is one of the larger sections of the Intel business, it was not specifically mentioned as a focus point for the future business strategy during Krzanich’s blog entry in April. While the prospective sale has not been confirmed by the Intel team, separating the unit in the financials could indicate it is attempting to provide a greater level of transparency for potential buyers.

Intel reported to be looking for security exit

IntelAlmost six years after purchasing antivirus specialists McAfee, Intel is reported to be in the market to sell off its security arm, according to the FT.com.

Intel has yet to make a comment on the speculation, though those close to the deal expect it to be one of the largest in the security sector to date. The company initially announced the McAfee acquisition in August 2010 for $7.6 billion at a time where the concept of IoT was beginning to gain traction, and the size of the online security challenge was being realized.

“With the rapid expansion of growth across a vast array of Internet-connected devices, more and more of the elements of our lives have moved online,” said Paul Otellini, who was serving as Intel CEO at the time of the acquisition. “In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.”

While the introduction of cloud computing has provided smaller business and entrepreneurs a platform to innovate and challenge the tech giants, Intel are one of a number of organizations who have had to evolve their own proposition to remain relevant in the cloud-enabled world. Back in April, CEO Brian Krzanich outlined the long-term Intel strategy, which was split into five areas; cloud technology, IoT, memory and programmable solutions, 5G and developing new technologies under the concept of Moore’s law. While the security business unit is one of the larger within the Intel portfolio, security was not mentioned in the announcement.

The new strategy intends to move Intel away from the PC market place, as declining sales have continued to impact the business. Despite reporting year-on-year growth of 7% during the last quarterly earnings call, this was not enough to deter the company from announcing 12,000 job cuts, equivalent to 11% of the global workforce.

“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” said Krzanich, who is leading the company’s shift away from client computing and towards IoT and the cloud. “The opportunity now is to accelerate this momentum and build on our strengths. These actions drive long-term change to further establish Intel as the leader for the smart, connected world. I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”

Security is an area which is seemingly gaining traction in the venture capitalist arena, as there have been numerous deals announced in recent months. Blue Coat was acquired by Symantec earlier this month from majority shareholder Bain Capital for $4.65 billion, with Bain Capital agreeing to reinvest $750 million, and Silver Lake committing to an additional investment of $500 million. Vista Equity Partners has also agreed to purchase identify management company Ping Identity for an undisclosed sum.

Intel continues to innovate through Itseez acquisition

IntelIntel has continued its strides into the IoT market through the acquisition of Itseez, a computer vision and machine learning company.

Itseez, which was founded by two former Intel employees, specializes in computer vision algorithms and implementations, which can be used for a number of different applications, including autonomous driving, digital security and surveillance, and industrial inspection. The Itseez inclusion bolsters Intel’s capabilities to develop technology which electronically perceive and understand images.

“As the Internet of Things evolves, we see three distinct phases emerging,” said Doug Davis, GM for the Internet of Things Group at Intel. “The first is to make everyday objects smart – this is well underway with everything from smart toothbrushes to smart car seats now available. The second is to connect the unconnected, with new devices connecting to the cloud and enabling new revenue, services and savings. New devices like cars and watches are being designed with connectivity and intelligence built into the device.

“The third is just emerging when devices will require constant connectivity and will need the intelligence to make real-time decisions based on their surroundings. This is the ‘autonomous era’, and machine learning and computer vision will become critical for all kinds of machines – cars among them.”

The acquisition bolsters Intel’s capabilities in the potentially lucrative IoT segment, as the company continues its efforts to diversify its reach and enter into new growth markets. Last month, CEO Brian Krzanich outlined the organizations new strategy which is split into five sections; cloud technology, IoT, memory and programmable solutions, 5G and developing new technologies under the concept of Moore’s law. Efforts have focused around changing the perception of Intel from a PCs and mobile devices brand, to one which is built on a foundation of emerging technologies.

Intel’s move would appear to have made the decision of innovation through acquisition is a safer bet than organic, in-house innovation. There have been a small number of examples of organic diversification; Apple’s iPhone is one example, though the safer bet to move away from core competence is through acquisition.

Intel has dipped its toe into organic diversification, as it attempted to develop a portfolio of chips for mobile devices, though this would generally not be considered a successful venture, similar to Google’s continued efforts to organically grow into social, which could be seen as stuttering. On the contrary, Google’s advertising revenues now account for $67.39 billion (2015), with its platform being built almost entirely on acquisitions. The AdSense and Adwords services have been built and bolstered through various purchases including Applied Semantics ($102 million in 2003), dMarc Broadcasting ($102 million in 2006), DoubleClick ($3.1 billion in 2007), AdMob ($750 million in 2009) and Admeld ($400 million in 2011).

While diversification through acquisition can be seen as the safer, more practical and efficient means to move into new markets, it is by no means a guaranteed strategy. Intel’s strategy could be seen as a sensible option as there are far more examples off successful diversification through acquisition compared to organic growth. The jury is still out on Intel’s position in the IoT market but there are backing the tried and tested route to diversification.

CIOs prioritize collaboration to increase security – Intel

a safe place to workIntel Security has released new findings which claims CIOs are targeting collaboration as a means to shore up defences against cyber threats.

Respondents to the survey believe their own organizations could be between 38-100% more secure if threat management and incident response personnel and systems could simply collaborate better. The team believe collaboration is one area which is often overlooked, with decision maker’s often favouring new threat detection or prevention tools, though security operations’ effectiveness can be increased through better collaboration between silos within the organization.

“Threat management contributions are almost evenly spread among different roles, but there are some notable areas of specialization,” the company stated in its “How Collaboration Can Optimize Security Operations” report. “Every handoff or transition can add significant operational overhead—along with the potential for confusion and chaos and delays in responding. But, on the upside, there is also huge potential for collaboration and increased efficiencies.”

The report states CIOs are still prioritizing new tools as a means to shore up their own perimeters, though collaborations technologies were not far behind in the rankings. 40% of the respondents highlighted their spend would be prioritized on better detection tools, 33% pointed towards preventative tools and 32% said improved collaboration between SOC analysts, incident responders and endpoint administrators.

One of the main challenges for these organizations is the process, accuracy and trust in communication. For a number of organizations data is shared manually and potentially reprocessed several times, increasing the possibility of inaccuracy. Automated collaboration tools ensure data is shared quickly and accurately through an array of different functions and responsibilities. “Trust arises from good communication, transparency, and accountability, all of which engender confidence in the outcome,” the report states.

The number of tools being used within these organizations is also a challenge, as data is often transferred between or collected centrally manually. The average number tools companies use to investigate and close an incident is four, though 20% of the respondents said they can use up to 20 different products to achieve the same aims, further increasing the challenge. Though larger and more geographically diverse organizations will by definition use more tools, the same principles of collaboration and automation apply, and in theory could increase the security of an organizations perimeter.

“Tougher new EU data privacy regulations, which are currently in the process of being modernized, will be implemented in 2017,” said Raj Samani, EMEA CTO for Intel Security, in the report. “Organizations will be legally required to implement a security architecture that ensures a secure and trustworthy digital exchange of data throughout the EU. Data privacy needs to be assured at every level and across the entire infrastructure. In light of that, improved incident investigation and response processes that bring together collaborative tools and teams are imperative.”

While most organizations are answering the threat of more advanced cyber threats with the implementation of more advanced defence solutions, collaboration is an area which could be seen as a complementary means. Collaboration can contribute to real-time visibility for various teams, improve execution capabilities, as well as speed of response.

IoT revenues grow to $6.7bn in Q4 2015

Development projectA new study from Technology Business Research (TBR) has found IoT’s revenues have grown to $6.7 billion over the course of Q4.

The research, which focused on the industry’s largest IoT players, including AWS, GE, Google, Intel and Microsoft amongst others, highlighted strong year-on-year growth as tier one vendors aim to drive profits in a relatively open marketplace. A lack of competition, high-profits and immature regulations/standards, are driving IoT up the priority list for tier one vendors currently.

“Effectively, every type of IT and operational technology (OT) vendor will have a stake in the growing commercial IoT market, as IoT solutions will drive increased use of diverse IT and OT products and services,” said TBR Devices and IoT Analyst Dan Callahan. “In addition to building interest in established IT products, commercial IoT will create growth in specialized business consulting, hardware, network, development, management and security components.

“IT and OT vendors that are quick to capture IoT opportunities within their current customer base, and attract new ones through developer programs and investing in growing mindshare, will enjoy additional, immediate, revenue opportunities.”

The ongoing adoption of cloud computing and the increasing pressure to capitalize on the growing amount of data available to organizations, were highlighted as drivers for the adoption of the technology, as customers aim to increase operational efficiency and the effectiveness of the decision making process. TBR believes the 21 benchmarked companies are gaining an advantage in the attractive IoT market due mainly to minimized competition. A lack of standards and security concerns around the technology has set a high barrier to entry for tech companies, though there is a healthy value chain in which smaller organizations can capitalize.

North America is seen as the leading region to integrate IoT and develop an early adopter community, accounting for just over 40% of the activity. APAC and CALA represented 24.8% and 5.5% of the market, respectively, whereas EMEA accounted for the majority of the remainder.

Intel prioritizes cloud, IoT and 5G in new business strategy

IntelIntel has outlined a new business strategy to capitalize on new trends within the industry including cloud technology, IoT and 5G.

Speaking on the company’s blog, CEO Brian Krzanich outlined the organizations new strategy which is split into five sections; cloud technology, IoT, memory and programmable solutions, 5G and developing new technologies under the concept of Moore’s law.

“Our strategy itself is about transforming Intel from a PC company to a company that powers the cloud and billions of smart, connected computing devices,” said Krzanich. “But what does that future look like? I want to outline how I see the future unfolding and how Intel will continue to lead and win as we power the next generation of technologies.

“There is a clear virtuous cycle here – the cloud and data centre, the Internet of Things, memory and FPGA’s are all bound together by connectivity and enhanced by the economics of Moore’s Law. This virtuous cycle fuels our business, and we are aligning every segment of our business to it.”

Krzanich believes virtualization and software trends, which are apparently redefining the concept of the data centre, aligns well with the Intel business model and future proposition, through the company’s position in the high-performance computing food chain. Through continued investment in analytics, big data and machine learning technologies, the company aims to drive more of the footprint of the data centre to Intel architecture.

The company’s play for the potentially lucrative IoT market will be built on the phrase of ‘connected to the cloud’. Intel has highlighted it will focus on autonomous vehicles, industrial and retail as our primary growth drivers of the Internet of Things, combining its capabilities within the cloud ecosystem to drive growth within IoT.

While were a number of buzzwords and trends highlighted throughout Krzanich’s post, Moore’s Law appeared to receive particular attention. While generally considered a plausible theory, Moore’s Law itself would appear to be underplayed within the industry, a point which Krzanich did not seem to agree with.

“In my 34 years in the semiconductor industry, I have witnessed the advertised death of Moore’s Law no less than four times,” said Krzanich. “As we progress from fourteen nanometer technology to ten nanometer and plan for seven nanometer and five nanometer and even beyond, our plans are proof that Moore’s Law is alive and well. Intel’s industry leadership of Moore’s Law remains intact, and you will see continued investment in capacity and R&D to ensure so.”

Krzanich’s comments provide more clarity to last week’s announcement on how it would be restructuring the business to accelerate its transformation project, and also it quarterly earnings. The data centre and Internet of Things (IoT) businesses would appear to be Intel’s primary growth engines, delivering $2.2 billion in revenue growth last year, and accounting for roughly 40% of revenue across the period.

The transformation project itself is part of a long-term ambition of the business, as it aims to move the perception of the company away from client computing (PCs and mobile devices) and towards IoT and the cloud. The announcements over the last week have had mixed results in the market; following its quarterlies share price rose slightly, though has declined over the subsequent days.

Cloud takes top spot at EMC, SAP and Intel quarterly announcements

Growth on a black boardEMC, SAP and Intel have all reported quarterly figures, with cloud taking centre stage during all announcements.

EMC demonstrated positive growth within the cloud business units, though its staple business unit, EMC Information Infrastructure saw double-digit year-on-year declines. The $67 billion merger with Dell was prominent throughout the earnings call, as the team would appear to be in the final stages of confirming the transaction.

SAP’s HANA once again dominated the company’s earnings call, demonstrating healthy growth in revenues and customer numbers over the period. The company saw positive growth worldwide, despite challenging conditions in Latin America.

Finally, Intel is seemingly succeeded in its transition programme as it reported positive growth during Q1. The company is moving away from its historical playground, setting its sights on the increasingly affluent IoT and cloud market segment.

EMC core business unit drags while cloud soars

EMC Corporation has reported its Q1 2016 results at revenues $5.5 billion a year-on-year decrease of 2%, though its VMWare and Pivotal businesses experience positive growth over the same period.

While the EMC Information Infrastructure business saw Q1 revenues decrease of 6% to $3.8 billion, the company was bolstered by 5% revenue growth from VMWare, and a 56% increase from the Pivotal business. The company highlighted healthy growth within the Pivotal cloud and big data subscription software in particular, with annual recurring revenue up over 200% year-on-year, to $116 million.

EMC“Work forces are becoming increasingly mobile,” said Joseph Tucci, President and CEO at EMC Corporation. “There is an explosion of data from connected smart device as sensors and telemetry are being built into every imaginable product. Companies are embarking on digital transformations to exploit this ever increasing amount of data, get more connected with their customers, employees, and suppliers. In short, we feel very good about the depth and breadth of our product portfolio.”

The results continue a trend of under-performance according to analysts, as this is now the sixth straight quarter EMC has missed analyst expectations. The company’s core business also saw declines as sales for its high-end storage services dropped 14%, though the flash storage business countered these declines somewhat, growing 122% year-on-year.

“The spending environment continues to be challenging as customers focus more on transformative IT projects while also minimizing transactional spend,” said Denis Cashman, CFO at EMC Corporation. “This customer behaviour is impacting our traditional business in the near-term. However, the major trends in IT remain intact, and we are having positive discussions with customers regarding how EMC and eventually, the combination of Dell and EMC, can help them with their IT and digital transformation.”

While the management would appear to be upbeat about the progress of EMC as an individual entity, attention could not be drawn away from the $67 billion Dell merger. The company claims the integration programme has been accelerated over recent months, and a number of EMC executives have included in the new leadership team announced by Michael Dell recently. Tucci also claims the team are now only awaiting regulatory approval from China, before the transaction can be completed.

S/4HANA dominates headlines at SAP quarterlies once again.

SAP has reported positive growth in the first quarter of 2016 as the company continues its transition from an enterprise to cloud-focused organization, with S/4HANA demonstrating healthy progress.

SAP1Cloud subscriptions and support revenues grew 33% year-on-year to €678 million, and new cloud bookings grew at 23% over the quarter to €145 million. The cloud business, as well as software support revenues, accounted for 69% of the quarter’s total revenues. EMEA demonstrated solid growth over the period, accounting for an 8% increase, whereas the Americas reported a 29% increase, despite political and economic instability in Brazil creating a challenging environment.

“Our cloud results this quarter leave no doubt that this business continues on its fast-growth path,” Luka Mucic, Chief Operating & Financial Officer at SAP. “Cloud revenue came in at 33% growth this quarter, which marks the 12th quarter in a row with 30%-plus growth rate excluding acquisitions. This is at the high end of our implied guidance range and ticking well ahead of our CAGR through 2020.

“New cloud bookings saw robust growth, up 23% or up 26% at constant currencies. With our strong cloud backlog and our strong bookings performance in 2015, we are well on track to deliver on our midterm growth ambitions in the cloud.”

SAP added more than 500 S/4HANA customers, of which approximately 30% were new. The company now boasts 3,200 customers for across the world for the product. HANA Enterprise Cloud was credited with particularly strong performance from the management team, as it highlighted customers are now utilizing the cloud platform for sensitive and mission critical processes.

“Companies are running their supply chain, manufacturing, asset management, sales and distribution that all operate on a 24/7 basis on the SAP HANA Enterprise Cloud,” William McDermott, CEO at SAP. “The triple-digit growth in this business is a validation of SAP Cloud innovation and we are only getting started.”

Intel cuts 12000 jobs to focus on IoT and cloud markets

Intel has reported year-on-year growth of 7% for Q1, taking the company’s revenues to $13.7 billion. Despite the positive growth, the management team also confirmed it would be cutting 12000 jobs, equivalent to 11% of the global workforce.

IntelThe Internet of Things group reported revenue of $651 million, an increase of 22% year-on-year, Security group revenue was up 12% to $537 million and the Data Centre group reported a 9% year-on-year growth to $4 billion. The company’s historical playground, its Client Computing group which includes PCs and mobile devices, was down 14% to $7.5 billion. The Client Computing group is where the management have revealed the majority of the job cuts will come from.

“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” said Intel CEO Brian Krzanich, who is leading the company’s shift away from client computing and towards IoT and the cloud.

“The opportunity now is to accelerate this momentum and build on our strengths,” said Krzanich. “These actions drive long-term change to further establish Intel as the leader for the smart, connected world. I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”

During the call Krzanich detailed the company’s restructuring programme, in which the team aim to move away from the perception Intel is a PC company, focusing on the cloud and connected devices markets. The company claims the staff reductions will enable Intel to focus its resources on new priorities

“You take a look at it, 40% of our revenue, 60% of our margin comes from areas other than the PC right now,” said Krzanich. “It’s time to make this transition and push the company over all the way to that strategy and that strategic direction. So that’s why we wanted to do it now.”