How Intel Is Managing IT In A Downturn

How Intel® is Managing Information Technology through the Downturn –

Business Client Perspective

How Intel® is Managing Information Technology through the Downturn –

Business Client Perspective Business Client Perspective Business Client Perspective

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HyperHyper--Threading Technology requires a computer system with a processor supporting HT Technology and an HT TechnologyThreading Technology requires a computer system with a processor supporting HT Technology and an HT Technology--enabled chienabled chipset, BIOS and operating pset, BIOS and operating

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Copyright © Intel Corporation 2009Copyright © Intel Corporation 2009

2009 has been a challenging year . . .

Business Spending is Tight …

… but, IT Can’t Sacrifice Core Services

“Job loses stack up as recession

“Recession or not, executives want IT

up as recession deepens.”

—Associated PressJanuary 9, 2009

executives want IT to improve

competitiveness, not just cut costs.”

—Information WeekDecember 16, 2008

The Challenge for IT

13%Innovation

20%Enhance Existing

4

67% of IT Spending is to Keep the Business

Running

Enhance Existing

Capabilities

Source: Gartner IT Key Metrics Data 2008

Need for Continued Investment on Need for Continued Investment on Innovation and Enhancing CapabilitiesInnovation and Enhancing Capabilities

How IT Can Make a Difference

5

Continue IT Continue IT EfficienciesEfficiencies

Drive Employee Drive Employee ProductivityProductivity

Drive Business Drive Business ProductivityProductivity

How IT Can Make a Difference

6

Continue IT Continue IT EfficienciesEfficiencies

Drive Business Drive Business ProductivityProductivity

Drive Employee Drive Employee ProductivityProductivity

••Mobile Mobile Client Client RefreshRefresh

Long-Term Consolidated IT Strategy� We moved through five stages in developing our long-

term consolidated IT strategy

Approximate Mix of Desktops/Notebooks

� By using total cost of ownership data and usage data, we inverted our desktop PC to wireless laptop ratio and achieved significant cost savings.

8 Intel - Public

Intel IT Client Strategy

•• Enable flexibility Enable flexibility through mobilitythrough mobility

•• Buy performance Buy performance for productivityfor productivity

9

•• Refresh for TCO Refresh for TCO savingssavings

•• Deploy Deploy VproVpro(R)™ (R)™ for manageability for manageability & security& security

1,1631,268

Client Refresh Strategy2 to 4-years Based on User

Client Support Cost

After 3 yrsAfter 3 yrs

–– 60% higher support*60% higher support*

–– Extended warrantiesExtended warranties

–– Higher HW failuresHigher HW failures

–– Increase virus & Increase virus & security breachessecurity breaches

Productivity Test (sec)

System age impacts System age impacts productivityproductivity

–– 5 year old system took 5 year old system took ~50% longer in tasks*~50% longer in tasks*

10

839

T40 T42 T60Yr1 Yr2 Yr3 Yr4

Client Support Cost

security breachessecurity breaches

yr1yr3yr5

Productivity Test (sec)

Increasing IT load complexity; security & regulation requirements

“IT” is the Killer App“IT” is the Killer App

* Source: Internal Intel data as of Feb’09, results will be dependent on specific system, configuration, and environment

IT PC Annual TCO by Refresh Date

� The sample data shown here helped us determine that a three-year refresh cycle optimized cost efficiencies.

11

December 2008

Intel - Public

Benefits of Client Refresh

Manageability

Solution Description Deployed

Remote Repair

Identify the issue and remotely resolve a Boot issue

Remote Config.

Assist with BIOS level configuration changes, Whole Disk Encryption (WDE)

12

• IT response & cost

• ‘08 - >31k clients enabled (~80% of TAM)

• ’09 - increased use cases

• ‘10 - 100% Intel® vPro™ managed fleet

Disk Encryption (WDE) assistance

Remote Diagnosis

Identify faulty HW issues to assist Client Services in time to repair

SystemDefense

Network access restriction, proactive isolation

Asset Mgmt

Integrate platform audit with in band agent inventory capabilities

Benefits of Client Refresh

Security New CapabilitiesManageability

13

• Hard drive encryption deployment gated on refresh of clients

• Encryption impacts boot & resume time

• Performance needed for productivity tools

• SSD deployment

• Personal video conferencing

• IT response & cost

• ‘08 - >31k clients enabled (~80% of TAM)

• ’09 - increased use cases

• ‘10 - 100% Intel® vPro™ managed fleet

Summary

•• Companies are looking to IT to Companies are looking to IT to improve competitiveness in the improve competitiveness in the current environmentcurrent environment

•• IT opportunity to drive IT opportunity to drive employee & business employee & business

14

employee & business employee & business productivityproductivity

-- Mobile & managed client refreshMobile & managed client refresh

•• Mobile Client Refresh and Mobile Client Refresh and Remote Management are key Remote Management are key to reduced TCO of Client to reduced TCO of Client MachinesMachines

• Increasing the Business Value of Mobility http://download.intel.com/it/pdf/Increasing_the_Business_Value_of_Mobility.pdf

• Proactive PC Support Improves Service and Lowers TCO http://download.intel.com/it/pdf/320075.pdf

• Improving the Mobile Experience with Solid-State Drives http://download.intel.com/it/pdf/Improving_the_Mobile_Experience_with_Solid_State_Drives_2009.pdf

• Accelerated Server Refresh Reduces Data Center Costhttp://www.intel.com/it/pdf/Accelerated_Server_Refresh_Reduces_Data_Center_Cost.pdf

Other Resources Available:intel.com/it/ http://communities.intel.com/community/openportit/it

15

http://www.intel.com/it/pdf/Accelerated_Server_Refresh_Reduces_Data_Center_Cost.pdf

• Maximizing IT Value by Using High-End Server processorshttp://download.intel.com/it/pdf/AnimWP_Maximizing_IT_value_FINAL.pdf

• Reducing Storage Growth and Cost; A Comprehensive Approach to Storage Optimizationshttp://download.intel.com/it/pdf/320947_en.pdf

• Reducing Data Center Cost with an Air Economizerhttp://www.intel.com/it/pdf/Reducing_Data_Center_Cost_with_an_Air_Economizer.pdf

• Intel IT Annul Performance Reporthttp://www.intel.com/it/apr.htm