I just attended IDF and I’ve got to say, Intel has certainly gotten the cloud message. Almost everything is centered on clouds, from the high-concept keynotes to the presentations on low-level infrastructure, although if you dug deep enough there was content for general old-fashioned data center and I&O professionals. Some highlights:
Chips and processors and low-level hardware
Intel is, after all, a semiconductor foundry, and despite their expertise in design, their true core competitive advantage is their foundry operations – even their competitors grudgingly acknowledge that they can manufacture semiconductors better than anyone else on the planet. As a consequence, showing off new designs and processes is always front and center at IDF, and this year was no exception. Last year it was Sandy Bridge, the 22nm shrink of the 32nm Westmere (although Sandy Bridge also incorporated some significant design improvements). This year it was Ivy Bridge, the 22nm “tick” of the Intel “tick-tock” design cycle. Ivy Bridge is the new 22nm architecture and seems to have inherited Intel’s recent focus on power efficiency, with major improvements beyond the already solid advantages of their 22nm process, including deeper P-States and the ability to actually shut down parts of the chip when it is idle. While they did not discuss the server variants in any detail, the desktop versions will get an entirely new integrated graphics processor which they are obviously hoping will blunt AMD’s resurgence in client systems. On the server side, if I were to guess, I would guess more cores and larger caches, along with increased support for virtualization of I/O beyond what they currently have.
Many product strategists are, like me, old enough to remember software stores like Egghead. Those days are gone. Today, consumer packaged software represents a very limited market – the software aisle has shrunk, like the half-empty one at the Best Buy in Cambridge, MA (pictured).
Only a few packaged software categories still exist: Games. Utilities and security software. And Microsoft Office – which constitutes a category unto itself. Some 67% of US online consumers regularly use Office at home, according to Forrester’s Consumer TechnographicsPC And Gaming Online Survey, Q4 2009 (US). Office is the most ubiquitous – and therefore successful – consumer client program aside from Windows OS.
Office 2010, Microsoft’s latest release, will continue to succeed with consumers. On the shoulders of Office 2010 rests nothing less than the defense of packaged software in general. It’s also the most tangible example of Microsoft’s Software Plus Services approach to the cloud – a term that Microsoft seems to be de-emphasizing lately, but which captures the essence of the Office 2010 business goal:
To sell packaged client software and offer Web-based services to augment the experience.