Saturday, January 20, 2007

recent developments

Intel Inside, Intel Systems Division, and Intel Architecture Labs

During this period, Intel undertook two major supporting programs that helped guarantee their processor's success. The first is widely-known: the 1990 "Intel Inside" marketing and branding campaign. This campaign established Intel, which had been a component supplier little-known outside the PC industry, as a household name. The second program is little-known: Intel's Systems Group began, in the early 1990s, manufacturing PC "motherboards", the main board component of a personal computer, and the one into which the processor (CPU) and memory (RAM) chips are plugged. Shortly after, Intel began manufacturing fully-configured "white box" systems for the dozens of PC clone companies that rapidly sprang up. At its peak in the mid-1990s, Intel manufactured over 15% of all PCs, making it the third-largest supplier at the time. By manufacturing leading-edge PC motherboards systems, Intel enabled smaller manufacturers to compete with larger manufacturers, accelerating the adoption of the newest microprocessors and system architecture, including the PCI bus, USB and other innovations. This in turn led to more rapid adoption of each of its new processors in turn.

During the 1990s, Intel's Architecture Lab (IAL) was responsible for many of the hardware innovations of the personal computer, including the PCI Bus, the PCI Express (PCIe) bus, the Universal Serial Bus (USB), Bluetooth wireless interconnect, and the now-dominant architecture for multiprocessor servers. IAL's software efforts met with a more mixed fate; its video and graphics software was important in the development of software digital video, but later its efforts were largely overshadowed by competition from Microsoft. The competition between Intel and Microsoft was revealed in testimony by IAL Vice-President Steven McGeady at the Microsoft antitrust trial.

Another factor contributing to rapid adoption of Intel's processors during this period were the successive release of Microsoft Windows operating systems, each requiring significantly greater processor resources. The releases of Windows 95, Windows 98, and Windows 2000 provided impetus for successive generations of hardware.

Competition, antitrust and espionage

Two factors combined to end this dominance: the slowing of PC demand growth beginning in 2000 and the rise of the low-cost PC. By the end of the 1990s, microprocessor performance had outstripped software demand for that CPU power. Aside from high-end server systems and software, demand for which dropped with the end of the "dot-com bubble", consumer systems ran effectively on increasingly low-cost systems after 2000. Intel's strategy of producing ever-more-powerful processors and obsoleting their predecessors stumbled, leaving an opportunity for rapid gains by competitors, notably AMD. This in turn lowered the profitability of the processor line and ended an era of unprecedented dominance of the PC hardware by Intel.

Intel's dominance in the x86 microprocessor market led to numerous charges of antitrust violations over the years, including FTC investigations in both the late 1980s and in 1999, and civil actions such as the 1997 suit by Digital Equipment Corporation (DEC) and a patent suit by Intergraph. Intel's market dominance (at one time it controlled over 85% of the market for 32-bit PC microprocessors) combined with Intel's own hardball legal tactics (such as its infamous 338 patent[2] suit versus PC manufacturers) made it an attractive target for litigation, but few of the lawsuits ever amounted to anything.

A case of industrial espionage arose in 1995 that involved both Intel and AMD. Guillermo Gaede, an Argentine immigrant formerly employed both at AMD and at Intel's Arizona plant, was arrested for attempting in 1993 to sell the i486 and Pentium designs to AMD and to certain foreign powers.[1][2] Gaede videotaped data from his computer screen at Intel and mailed it to AMD, which alerted Intel and authorities, resulting in Gaede's arrest.[3] Gaede was convicted and sentenced to 33 months in prison in June of 1996.

iMac Intel Core Duo (20-inch)
iMac Intel Core Duo
(20-inch)

Partnership with Apple

On June 6, 2005, Apple Computer CEO Steve Jobs announced that Apple would be transitioning from its long favored PowerPC architecture to the Intel X86 architecture. Reasons stated for the change were vague but included thermal issues with recent PowerPC G5 chips and an implication that the future PowerPC roadmap was unable to satisfy Apple's needs for computing power. In particular, the large power requirement of the G5 chip and subsequent heat generation was seen as a major stumbling block, preventing the placement of such a chip in one of Apple's laptop computers. The first Apple computers containing Intel CPUs were announced on January 10, 2006. Apple initially planned to put Intel chips in all of their computers by the end of 2007,[4] but Apple managed to have its entire consumer product line running on Intel processors by early August 2006. The Apple Xserve server was updated to Intel Xeon processors from November 2006 and is offered in a configuration similar to Apple's Mac Pro.[5]

Leadership

Robert Noyce was Intel's CEO at its founding in 1968, followed by co-founder Gordon Moore in 1975. Andy Grove became the company's President in 1979 and added the CEO title in 1987 when Moore became Chairman. In 1997 Grove succeeded Moore as Chairman, and Craig Barrett, already company president, took over. On May 18, 2005, Barrett handed the reins of the company over to Paul Otellini, who previously was the company president and was responsible for Intel's design win in the original IBM PC. The board of directors elected Otellini CEO, and Barrett replaced Grove as Chairman of the Board. Grove stepped down as Chairman, but will be retained as a special advisor.

Corporate governance

Current members of the board of directors of Intel are: Craig Barrett, Charlene Barshefsky, John Browne, James Guzy, Reed Hundt, James Plummer, David Pottruck, Jane Shaw, John Thornton, and [David

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