Tag: strongarm

Intel falls into ARM’s arms

Intel-logoIn one of those strange twists of fate that dog the semiconductor industry, it appears X86 giant Intel is now one of the biggest licensees of ARM tech on the planet, now it is a foundry business. ARM, of course, offers an advantage over X86 servers in terms of both functionality and heat. Intel is considerably boosting ARM revenues, according to well informed sources close to the facts.

Actually, INTC has always had a lot of foundry business. It was forced by American authorities to guarantee that production of DEC’s Alpha microprocessor continued until the end of the decade, as we reported earlier at the INQster and the Rogister years back. Intel also had and probably still has a StrongARM licence – an opportunity Chipzilla signally missed back in the days.

It also still makes HP chips. Perhaps that is because of the peculiar nature of the partnership between Intel and HP.

Intel reacted very badly to the news.

Anna Cheng, the UK spinner for Intel, sent a snottogram to the Eyes saying that the world+dog knew it made ARM chips. She said that she objected to the fact that the Eyes blank carbon copied other people at Intel – including Chuck Mulloy – asking for clarification. She scolded the Eyes for not going through proper channels.

We responded by saying that we had in our possession many Intel “confidential” emails describing me – in no uncertain terms – as an old buffer.

ARM refused to comment, but it is quids in because of Intel’s decision to fab up the unique British designs…

Intel thinks anthropologist will fix its business

bummerGenevieve Bell and another 100 or so social scientists are trying to save Intel’s “flailing business”.

Bell, an anthropologist and an Intel fellow, and her team, are racking their brains to figure out what gadgets people will use in the future, according to the San Jose Mercury News.

We told Intel years ago it should bung StrongARM chips into small, portable devices that consumed little power.  But Intel can be rather hard of hearing.

The Mercury News reckons that Intel’s fate is in the 200 pair of hands in Bell’s team seeing as PCs ain’t what they used to be.

The newspaper quotes Bell as saying she couldn’t imagine being in a better place, while another researcher is quoted as saying that Intel “is highly attuned to long term thinking”.


Intel seems to have lost its way

Sean MaloneyThe news that Intel’s Galileo is on its way just underlines to me how the chip giant has lost its way.

The “open source” computer costs $70, and uses its Quark microprocessor. Intel clearly thinks it will compete against the highly successful Raspberry Pi but clearly it hasn’t got a chance to play catch up.

The launch mirrors Intel’s late attempt to climb on the tablet bandwagon by cutting the price of its Atom microprocessor to compete with ARM and Nvidia based chips.  But it hasn’t got an earthly here, either.  Manufacturers are very chary about using anything with the Intel name associated with the tin. Again, that’s underlined by vendors’ reluctance to be associated with Intel.

Cheap is everything in the tablet market now and even though Intel’s chips might be, er, cheap as chips, the economics of this don’t really make a lot of sense to anyone. Sure, Intel has heaps of capacity but that in itself is part of the problem. State of the art fabs are really expensive these days and the volume game just doesn’t fit Intel’s business model.

In reality, the chip giant really has very little new to say. The new broom in the shape of CEO  Brian Kzanic appears to be attempting the Herculean task of cleaning the Augean Stables not just of the dung but also of a heap of very good people who have let their legs do the walking.

Datacentre business no doubt is still healthy for Chipzilla, but on the other hand independent market research shows that the notebook market is on the wane.  Sure, enterprises will refresh their notebooks but with the arrival of BYOD, there’s a level of ambiguity which must leave Intel more than a little bemused.

In truth, Intel has had zilch to say in the last three years as smartphones and tablets transformed the “traditional” Wintel model.

As part of the antitrust agreement following the demise of DEC, Intel found itself with StrongARM devices. At the time, we asked top executives from the firm why it didn’t just cut the Gordian Knot and produce a highly portable ARM based device?  The answer, of course, was that Intel was on the Centrino notebook gravy train. Sean Maloney, now a non-executive director at Chinese foundry SMIC, realised that the Atom chip might well cannibalise the notebook market but nobody at Intel appeared to have looked further than the next three quarters and see its dominance becoming more and more eroded.

Of course, Intel has oodles of cash in the bank but oodles don’t last forever.  Re-engineering its business model is, for Intel, a far from trivial task. As an Intel watcher for the last 30 years, I will be most interested to see what happens in the next 12 to 18 months.

How Microsoft and Intel lost the plot

The TitanicWhile no-one could say that the writing is on the wall for giant tech companies Intel and Microsoft, there is a warning there but so far it’s just written in invisible ink.

As I write this, Intel’s share price (NASDAQ:INTC) stands at $21.93 and Microsoft’s (NYSE:MSFT) at $26.90.  They’ve ticked along in this way for many a long year now and the only way seems to be down.

Signs of bombers approaching have been on the radar for many a year now, and both companies seem to be like supertankers, which take an awfully long time to run round.  The Vole and the Zilla have got complacent and failed to take steps years ago to re-engineer their businesses.

You still have time to have a wee and wash your hands before a PC boots up and despite the undoubted process advances Intel has made over the years, people are fleeing the Win platform in their droves.

Both companies have failed to make inroads into the smartphone and tablet market, even though they whined on and on about convergence for many a year.  Handset manufacturers, by and large, do not want to be in the tender embrace of the two companies which essentially dictated what went in the PC industry.

And besides, their basic technology deeply sucks, for different reasons. Intel is forced, because of its huge capital investment commitments, to put a premium on its notebook microprocessors while it is safe to say that its much vaunted Atom range is just a total flop.

Microsoft’s software has always basically sucked anyway and it’s only by cunning marketing that it achieved its pre-eminence in this side of the business. I don’t think anyone, apart from Intel executives, have got smartphones powered by Intel Inside. Oddly enough, at an Intel Developer Forum years and years ago, when it still had its StrongARM stuff, me and a few other journos did ask why Intel just didn’t go and develop really low power devices based on the ARM chip and give people what they really wanted.

While Intel and Microsoft have been shilly-shallying and, essentially, living in the past, competition has crept up and overtaken them.

And so at some point this year, current CEO Paul Otellini is to depart from his captain’s cabin at Intel, to be replaced by who-knows-who to guide the ship into 2013 and beyond.

Right now, and as an Intel and Microsoft watcher for nigh on 30 years, I just can’t see how these particular conjurers are going to pull any rabbits out of their magic hats. Maybe they’ll specialise in producing cabbages from up their sleeves, instead.