January 17, 2000

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Inside Intel:
Intel In The 21st Century

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s Intel sets out to make its brand as synonymous with networks and hosted services as it is with PCs, president and CEO Craig Barrett shared his thoughts on the future at a meeting with InformationWeek editors at the company's Santa Clara, Calif., headquarters. (For the full transcript of the interview, go to informationweek.com/769/interview.htm.)

On Intel's diversification plans: The major issue that we face is growth. The PC was the dominant force in the last decade; the Internet is clearly the dominant force in the forthcoming decade. So we're hitching to that star and riding it as fast as we can.

On competing in the networking and application hosting markets: We have lots of competition in the microprocessor space. When you talk about servers, there's Sun and the RISC guys. We've got AMD and Via in the low-end space, so we're used to competition. We've been in the memory business. ... If you want a brutally competitive space to be in the last several years, the memory business has been just that. Yet we emerged from that as the market-share and technology leader.

On evolving as a company: We have to be a different kind of company. Through the '90s, we were basically a one-product company. Going forward, that processor business still has to be a strong part of us. But we have to grow other businesses independently. The general managers driving our businesses today have to have much more autonomy.

On becoming an application service provider: Businesses ought to run stuff that they have competency and capabilities in and bring value to. They don't run their own phone companies. But I don't see us being in competition with internal IT departments. As people get further into E-business, they will want a solid infrastructure, which means they will want qualified hardware and software people. But the whole concept of moving your business from a traditional medium over to an Internet medium assumes that the IT organization has to change how it does business, because suddenly all business has to be done consistent with the new medium. The IT organization and the business managers will have to work more closely.

INSIDE INTEL

Chips Come First

Back-End Push Heats Up

Networking Gains Ground

Hosting: The New Goal

Intel In The 21st Century

Intel: The R&D Strategy

Interview: Craig Barret, CEO of Intel

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