2015 Global Technology conference. Diane Bryant Senior Vice President & General Manager Data Center Group Intel Corporation

Transcription

1 2015 Global Technology conference Diane Bryant Senior Vice President & General Manager Data Center Group Intel Corporation

2 Risk Factors The above statements and any others in this document that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "may," "will," "should" and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel's actual results, and variances from Intel's current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be important factors that could cause actual results to differ materially from the company's expectations. Demand for Intel's products is highly variable and could differ from expectations due to factors including changes in business and economic conditions; consumer confidence or income levels; the introduction, availability and market acceptance of Intel's products, products used together with Intel products and competitors' products; competitive and pricing pressures, including actions taken by competitors; supply constraints and other disruptions affecting customers; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Intel's gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; segment product mix; the timing and execution of the manufacturing ramp and associated costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; and product manufacturing quality/yields. Variations in gross margin may also be caused by the timing of Intel product introductions and related expenses, including marketing expenses, and Intel's ability to respond quickly to technological developments and to introduce new products or incorporate new features into existing products, which may result in restructuring and asset impairment charges. Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Results may also be affected by the formal or informal imposition by countries of new or revised export and/or import and doing-business regulations, which could be changed without prior notice. Intel operates in highly competitive industries and its operations have high costs that are either fixed or difficult to reduce in the short term. The amount, timing and execution of Intel's stock repurchase program could be affected by changes in Intel's priorities for the use of cash, such as operational spending, capital spending, acquisitions, and as a result of changes to Intel's cash flows or changes in tax laws. Product defects or errata (deviations from published specifications) may adversely impact our expenses, revenues and reputation. Intel's results could be affected by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues. An unfavorable ruling could include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or more products, precluding particular business practices, impacting Intel's ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property. Intel's results may be affected by the timing of closing of acquisitions, divestitures and other significant transactions. A detailed discussion of these and other factors that could affect Intel's results is included in Intel's SEC filings, including the company's most recent reports on Form 10-Q, Form 10-K and earnings release.

3 Data Center Business Enterprise IT Cloud Service Provider Telco Service Provider Government, Academia, Science Technical Computing ~45% of 2014 Revenue <10% 2015 Rev Growth* ~20% of 2014 Revenue >20% 2015 Rev Growth* ~10% of 2014 Revenue >20% 2015 Rev Growth* ~15% of 2014 Revenue >20% 2015 Rev Growth* Server Storage Network >90% MSS >80% MSS <10% MSS CPUs Chipsets Ethernet, Infiniband, Omni Path Controllers Boards/Systems SSDs CPUs Flash Caching & RAID SW CPUs Accelerators Silicon Photonics Ethernet & Infiniband Switch Silicon Software *Source: IDC WW Server Tracker & Intel Other names and brands may be claimed as the property of others Lustre File System Datacenter Manager Carrier Grade OS Workstation ~10% of 2014 Revenue

4 Data Center business growth Data Center Revenue Forecast $ $14.4B Enterprise IT Government, Academia, Science Cloud SPs Telco SPs *Forecast is based on current expectations and is subject to change without notice Source: Intel

5 1H 2015 Product Update Xeon D Xeon E5 v3 Xeon E7 v3 Xeon + FPGA Xeon E7 Announced agreement to acquire Extends portfolio for network, storage and high density servers Exceeded target of 50% volume in Q1 10X better performance per dollar vs. RISC 1 2X+ performance on custom workloads 2 1. Up to 10x better perf/$ driving up to 85% lower TCO, Xeon E7 v3 over IBM POWER8, claim based on Intel estimated SPECint_rate_base2006 results and pricing of comparable 8-processor rack servers using Intel Xeon processor E v3 (18C, 2.5GHz) and IBM Power E870 using POWER8 (4.19 GHz, 10-Cores) as of March Performance/$ leadership calculation is based on system hardware price only. 2. Intel estimate Other names and brands may be claimed as the property of others

6 Data center Growth Drivers Enterprise IT Cloud Service Provider Telco Service Provider Government, Academia, Science Technical Computing HPC Big Data

7 = Resource Utilization Cloud App App App App App App Orchestration App System 1 App System 2 App App App App Virtualization Virtualization System 1 System 2 Virtualization System 1 >80% Virtualization System N >80% <10% <10% Traditional ~50% ~50% Virtualized Cloud Cloud delivers revenue acceleration, CapEx & OpEx efficiency

8 Network Transformation Service Provider Benefits Data Traffic Voice Dominant Data Traffic & Revenue Decoupled Revenue Mobile Broadband Dominant Time Economies of Scale Open standard technologies & platforms OpEx & CapEx Efficiency Virtualization & automation of network workloads Revenue Growth Cloud delivery of services $18B silicon TAM opportunity* *Source: Intel estimate

9 HPC Top 500 Commercial New Usages Government Investments Increasing Move from Physical to Digital Expanding to the Cloud Advanced Analytics India announces $730M National Supercomputing Mission Less than 10% of US manufacturers use HPC* Made in China 2025 Quality not Quantity through IT By % of HPC is in the cloud* The foundation for Machine Learning To compete you must compute *Sources: Intersect360, IDC

10 Big Data Analytics Distribution of Hadoop Health Genomics, disease progression, hospital readmission rates Retail In-store experience, demographic Security & IT Data center machine data, Netflows Manufacturing Predictive maintenance, supply chain optimization Financial Services Compliance, financial data services Wearables Analyze consumer device data Energy & Power Smart grid / Smart Meter management Oil Field Services Preventive maintenance of oil field assets Video Surveillance Visual analytics to identify anomalies $41B hardware, software & services TAM in 2018*, spanning all market segments *Source: IDC WW Big Data Forecast Other names and brands may be claimed as the property of others

11 SERVER: TAM Growth Efficiency leads to innovation & adoption How we grow Network: Share Gain Transition to industry standard servers Sell up & Silicon Footprint IA portfolio & integration delivers maximum value

12 Highest efficiency for all workloads Delivering wide range of standard to custom CPUs Optimizations for customer workloads Inclusion of customer s IP Customer specified product Standard CPU Customer-specific SKU Customer Feature Integration Custom CPU 39 Custom CPUs Launched, >10 in Broadwell Pipeline C4 Azure-G Exalogic Elastic Cloud Moonshot Xeon with Intel Iris Graphics Weather Other names and brands may be claimed as the property of others

13 General Purpose Expanding acceleration options Announced: Agreement to acquire Altera Optimization Point Targeted Xeon Processor Xeon Phi Processor FPGA ASIC General purpose applications Parallel applications Offload for changing algorithms Offload for stable algorithms Performance Gain >> Offload Overhead

14 Expanding acceleration options Announced: Agreement to acquire Altera FPGA Offload for changing algorithms Performance Gain >> Offload Overhead Xeon + FPGA = 2X+ performance gain over discrete FPGA* Expands the use of FPGA acceleration Reduces total cost of ownership (TCO) by using standard server infrastructure Increases flexibility by allowing for rapid implementation of customer IP and algorithms *Source: Intel estimates ~1/3 of Cloud Service Provider servers could use FPGAs by 2020*

15 Example of Data Center FPGA Acceleration FPGA Use Cases Accelerate one application across many servers ex. Cloud SPs Reprogram for customerspecific solutions ex. security appliance vendors Migrate ASIC function to FPGA ex. network functions Applications Image Identification Security Firewall, VPN, Router... Xeon Algorithms Convolutional Neural Network Encryption Virtual Switching FPGA Per Microsoft: FPGA can deliver 70%+ improved performance / watt

16 Network moves to Intel Architecture Industry Standards Intel Network Builders Network Function Virtualization Driving the creation of open standards #1 in Enterprise #2 in Telco Investment in building strong ecosystems Production deployments* *Trials & commercial deployments Other names and brands may be claimed as the property of others

17 Cloud Service Providers buying up Amazon s TCO Analysis SKU purchase trend Other Units Flat Upgrade James Hamilton AWS Architect Customized SKU example: 14% more performance for 2-4% incremental TCO delivering performance / TCO value % of volume moves to higher performance, gen over gen Other names and brands may be claimed as the property of others

18 IA Roadmap delivers maximum ROI Delivering more value X Performance Gain Gen Over Gen 100% 80% 60% Advanced SKUs New Moore s Law Continued transistor innovation Platform Integration Cores, memory, graphics, PCIe, Ethernet, etc. 40% 20% 0% Standard SKUs Basic SKUs 2010 Today New Instructions Performance TSX = 6X increase for in-memory database processing New Capabilities Hyperthreading, Turbo Mode, Virtualization, Memory RAS, Manageability 80% of volume moves up the stack

19 Increasing Silicon Footprint Data Center Portfolio Diversifying CPU non-cpu 22% 12% 78% 88% Data Center Revenue $37B Logic Silicon TAM* $14B of a $49B Logic Silicon + Memory TAM* Across Server, Storage, Network *Source: Bain research (2014)

20 Summary $ Data Center Revenue Forecast SERVER: TAM Growth $14.4B Network: Share Gain 0 Sell up & Silicon Footprint Enterprise IT Government, Academia, Science Cloud SPs Telco SPs

21 Legal Disclaimers Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. All dates, forecasts and products specified in this presentation are subject to change without notice. This presentation will not be updated to reflect any such changes. Copyright 2015 Intel Corporation. *Other names and brands may be claimed as the property of others.

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