Strategy OverviewThe Predictive

Enterprise

• IT Trends• The Predictive Enterprise• Intel’s Role and Relevance

Agenda

After years of cost optimizationBusiness trends + Technology innovation > Strategic innovation…

Cost Containment Competitive Advantage

Are you ready for the next big wave?

CIO Environment: IT Is Cyclical

The Next Wave

MainframeMainframeCompany Level Company Level Information and Information and

AutomationAutomation

PCPCPersonnel Personnel

ProductivityProductivity

Client ServerClient ServerApplications Extended to Applications Extended to

Internal UsersInternal Users

Mini ComputerMini ComputerDepartment Department

EmpowermentEmpowerment

InternetInternete-Businesse-Business

WHAT’S NEXT?WHAT’S NEXT?Co

mpe

titiv

e Ad

vant

age

1950’s 2000’sTime line

Extreme MobilityMobile device as std biz client, secure connectivity anywhere

Faster Business Clock SpeedReal-time biz intelligence; data explosion; rapid reprovisioning

The World is GreenLow power client and server utilization tunable consumption

Emerging Technology Trends

Innovation Beyond the FirewallSaaS and Web 2.0, virtual enterprise security models

The World Is FlatSOA/common building block architectures across company digital supply chains

The Next Wave: What’s Driving the Wave?

Extreme MobilityConsumers and workforce always connected anywhere

Faster Business Clock SpeedChange is accelerating, threatening sustainability

The World is GreenEnvironmental compliance; focus on environment

Emerging Business Trends

Innovation Beyond the FirewallEnterprise = mix of insourced/outsourced apps & services

The World Is FlatDemand for instantaneous response from interconnected companies

The boundariesare blurring

Data Center

Factory / Warehouse

Digital Offices

Mobile Workforce

Mobile Consumer

ISP / Telco

Supplier

Outsourcer

Customers

Predictive Enterprise

Data Center

Factory / Warehouse

Digital Offices

Mobile Workforce

Mobile Consumer

ISP / Telco

Supplier

Outsourcer

Customers• End-to-end value chain intelligence & data

capture across the business eco-system

• Real-time business intelligence driving “predictive decision making”

• Emerging technologies enable “super agile” business services and infrastructure

• Dynamic robust media services delivered securely anytime, anywhere on any device

• Intelligent integrated Business Collaboration & Enterprise Social Computing

Find and interpret emerging business trends

Respond proactively to the unexpected

Competitive Advantage in the emerging wave of Global Business Eco-Systems

Explain React Predict(Analytics)

Respond(Execution)

Weather Forecasting

“A hurricane just hit..” … circa 1900

“We predict a hurricane will hit the North Carolina coast in 48 to 72 hours.”… circa 1965

“We predict that 10 hurricanes will hit the Atlantic coast next year. Here are the approx. dates and strengths for each.” … circa 2005

Set dates for ‘just in time’ emergency supply deployments, including analysis of what can be re-used/relocated

Business Management

“We missed our forecast due to a $10MM loss of sales due to unexpected competition.”

“Looking at our business pipeline, we do not have sufficient volume to meet our FY06/07 profit goals.”

We forecast demand shift between our top three product lines that, w/o action, will result in backorders, overstock, and net $10MM sales loss

Set dates to reassign manufacturing capacity from product lines 1 & 2 to product line 3 in order to avoid overstock and backorders, increasing net sales volume $5MM

Based on “Business Intelligence”, Proctor and Gamble, May 2006

Conceptual Foundation: The “Predictive Enterprise”

The Knowledge and Execution Gap

““Most enterprises take a top-down approach that looks at the Most enterprises take a top-down approach that looks at the available data and analyzes it, but then lack the ability to available data and analyzes it, but then lack the ability to effectively deploy the results of the analysis.”effectively deploy the results of the analysis.”

Source:Source: “ “Gartner Symposium ITXPO”, October 2002, Gareth HerschelGartner Symposium ITXPO”, October 2002, Gareth Herschel.

IT Strategy

What Technology Elements Support a ‘Predictive Enterprise’?

Business Strategy

BusinessValue

Captureappropriate, filtered information from a variety of different sources.

Manageappropriate, filtered information from a variety of different readers and sensors.

Accessthe information any time, anywhere by appropriate people, applications and business process.

Respondto events and information automatically and allow for people to manage by exception.

Secure, Managed User Presentation

Enterprise Analytics & Automated Decision Making

Business Process Models & Workflow Optimization(RFID, WSN. WiFi, WiMax)

Web Services (XML, SOAP)

Business Applications (ERP, CRM)

Database & Data Management

Infrastructure for Computing EvolutionFLEXIBLE, MANAGEABLE, AGILE

HIGHLY UTILIZED, VIRTUALIZED, SECURE

Compute, Storage & Network

Enterprise Service BusAnalyzedata and events in real-time for business intelligence and proactive process improvement.

• The Predictive Enterprise goes beyond reacting faster • It is about the IT’s integral role to transform business

visions into real business capabilities

Adaptive

Business-driven IT Vision

Business Strategy

IT Strategy

“Weeks to Days”

Predictive

Business Vision enabled by IT

Business Strategy

IT Strategy

“Days to Minutes”

The Journey to the Predictive EnterpriseReactive

Standalone IT Vision

Business Strategy

IT Strategy

“Months To Weeks”

Data Center

Factory / Warehouse

Digital Offices

Mobile Workforce

My Business

What are Barriers to a Predictive Enterprise?Top Issues for IT

Technology Driven Biz Process Driven

Improving Business Processes

Security Threats

Compliance

Growing Complexity

and TCO

Environmental Compliance

Building and Retaining

Business Skills

Productivity Barriers

InformationExplosion

Security ThreatsCompliance

“On average, 42 days for the vendor release of patch to a vulnerability”

Symantec Internet Security Threat Report March 2006

2x Growth in Audit – Compliance Fees for F100

Source: IDC 2006

EnvironmentalCompliance

Greenhouse gas levels have hit peaks almost every year in last few decades”

Source: Polar Institue, 2007

Growing Complexity and TCO

Time to provision server: Months/weeks vs day/hours

Power/Cooling costs equal to new server investment by 2010

Source: IDC/ Gartner, 2004Information Explosion

Grew from total 5 Exa Bytes in 2003 to 161 EB generated in 2006 aloneSource: IDC, 2007

33% of CIOs cite BI as top priority

Source: Merill Lynch, 7/2006

Productivity Barriers

> 60% of Enterprises considering/investing in several Web 2.0 tools

Gartner, 2006 Viral Social communities

inside Enterprise (Wikis,vlogs,blogs..)

SaaS market exploding to $10.9 Bn by 2009

IDC

Improving Business Processes

Business and IT alignment is a key challenge over next three years

Source: IDC, 2006

Technology foundation for the future

What is Intel’s Role in Aligning Technology to IT Initiatives?

Defense In Depth Security Models

Dense, Efficient

Data CentersIT Service

Management

Search &Real-timeAnalytics

Rich Collaboration

Models

Mobile Compute

Cross Over

Trust Management

Energy Efficient

Performance Core

Unified Comms

Mobile & Rich User Experience

Dynamic Resource

Management

Data Intensive Computer

Security Threats &

ComplianceData

ExplosionIncreasing Complexity

& TCOEnvironmental

ComplianceProductivity

Barriers

Intel Focus

Key IT Initiatives

(Examples)

TopHurdles

Proc

essi

ng

Infr

astr

uctu

reEn

terp

rise

So

luti

ons

Data Centerof the Future

Service OrientedEnterprise

Architecture

Digital SupplyChain & Business

IntelligenceEnterprise

Client

Intel’s Role: Transformational SolutionsPr

edic

tive

En

terp

rise SupplierSupplier

Mobile ConsumerMobile Consumer

ISP / TelcoISP / Telco

Data CenterData CenterFactory / WarehouseFactory / Warehouse

Digital OfficesDigital Offices

Mobile WorkforceMobile Workforce

OutsourcerOutsourcer

CustomersCustomers

Trust Management

Energy Efficient

Performance Core

Unified Comms

Mobile & Rich User Experience

Dynamic Resource

Management

Data Intensive Computer

CHIPSETSBOARDS & SERVER SYSTEMS

Intel’s Role: Innovation Through Ecosystem Leadership

INDUSTRY ENABLING350+ StandardsGroups

INTEL CAPITAL> $6B Invested~ 1,000 Companies> 40 Countries

IT @ INTEL$B eBiz annually Ranked #11 in top global supply chains66K Servers100K Clients,70% Mobile

100s People> $200M Annually

ECOSYSTEM ENABLING

Intel Solution Services

• The Predictive Enterprise will give your company competitive advantage.• IT strategy + emerging Intel® technologies + ecosystem = predictive capabilities.• Our ecosystem leadership is your advantage in planning and achieving a Predictive Enterprise.

Intel is the catalyst to business innovation

Solutions

Ecosystem

Intel’s Role: Accelerate the Transformation

Technology

Pred

icti

ve

Ente

rpri

se SupplierSupplier

Mobile ConsumerMobile Consumer

ISP / TelcoISP / Telco

Data CenterData CenterFactory / WarehouseFactory / Warehouse

Mobile WorkforceMobile Workforce

OutsourcerOutsourcer

CustomersCustomers

Digital OfficesDigital Offices

• Are you ready for the next wave?• Sense, Predict, Act• Partner with Intel to plan your

predictive strategy

Summary

Next Steps

• Meet for more in-depth info on:- Key technology areas- Intel solutions offerings- Strategy and IT transformation

• Arrange Exec discussions to explore how we can work together

• Arrange joint discussions with one of our ecosystems players - ISVs that have core software solutions- SIs and ITOs that can implement and/or manage

solutions and services