Intel Transforms Itself from a PC Company to Something Broader
Intel is generally defined as a PC company thanks to its technically excellent range of processors. The US based multinational company has dominated the CPU market for long; however, with this market on decline for the past few years, Intel is now transforming itself “from a PC company to a company that powers the cloud and billions of smart, connected computing devices.”
At the company’s quarterly earnings call last week, CEO Brian Krzanich spelled it out in very clear words for the first time that Intel is not a PC company any more; in fact, the PC is just one of many “connected things” in the new world order.
Moving forward, Intel will have five-fold key focuses, Krzanich said. These include:
- The cloud—including servers, data centers, and virtualization
- Connected “things,” such as sensors, autonomous vehicles, or PCs
- An evolving memory business, from 3D XPoint memory to advances in server and data center infrastructure
- Connectivity, specifically 5G networking
- Manufacturing and the underlying fab technology.
Intel’s shifting gears makes sense considering about 40 percent of its revenue and 60 percent of profit margin already come from outside the PC. “It’s time to make this transition and to push the company over all the way to that strategy and that strategic direction,” Krzanich said. “That’s why we wanted to do it now.”