Intel Capital The Digital Home Curt J. Nicols VP & Director Digital Home Initiative, Intel October 29, 2004.

Intel CapitalIntel Capital

The Digital HomeThe Digital Home Curt J. NicolsCurt J. Nicols

VP & Director VP & Director

Digital Home Initiative, IntelDigital Home Initiative, Intel

October 29, 2004 October 29, 2004

Intel Capital

Four Pillars of Intel StrategyFour Pillars of Intel Strategy

ArchitectureArchitecture ManufacturingManufacturing BrandBrand InvestmentsInvestments Build ecosystems

Develop international

presence

Foster silicon technology

Scout new technologies

Build ecosystems

Develop international

presence

Foster silicon technology

Scout new technologies

Intel Capital

Intel Capital MissionIntel Capital Mission

Make And Manage Make And Manage Financially Attractive Investments Financially Attractive Investments In Support Of In Support Of Intel’s Strategic ObjectivesIntel’s Strategic Objectives

External and Internal InvestmentsExternal and Internal InvestmentsExternal and Internal InvestmentsExternal and Internal Investments

StrategicStrategic FinancialFinancialICapICap

Intel Capital

Investment ThemesInvestment Themes

Communication Infrastructure

Digital Home

Mobile / Internet Clients

Enterprise / Digital Office

Next-Gen Si Production & Design

Int’l &Emerging Markets

Intel Capital

Content Anytime, Content Anytime, Anywhere, Any DeviceAnywhere, Any Device

Digital Home Vision Digital Home Vision

Intel Capital

Intel is Serious about Intel is Serious about the Digital Homethe Digital Home

Awesome Performance for Audio, Awesome Performance for Audio, Image & Video ProcessingImage & Video Processing

Intel® Pentium® 4 Processor Intel® Pentium® 4 Processor on 90nm Technologyon 90nm Technology

Alderwood & GrantsdaleAlderwood & Grantsdale

NetBurst™ Microarchitecture EnhancementsNetBurst™ Microarchitecture Enhancements

Enhancements to HT TechnologyEnhancements to HT Technology800 MHz FSB800 MHz FSB

1MB L2 Cache 1MB L2 Cache

13 New Instructions (SSE3)13 New Instructions (SSE3)

PCI Express* x16 Discrete PCI Express* x16 Discrete GraphicsGraphics

High Definition AudioHigh Definition Audio

RAID 0/1 RAID 0/1

Dual Channel DDR2-533Dual Channel DDR2-533

Integrated APIntegrated APNext Gen, Intel Integrated Graphics*Next Gen, Intel Integrated Graphics*

*Integrated Graphics available on Grantsdale only

Intel Capital

The Industry is Serious: DLNA The Industry is Serious: DLNA Digital Living Network AllianceDigital Living Network Alliance

>140 Member Companies** >140 Member Companies**

*Other brand and names are the property of their respective owners.*Other brand and names are the property of their respective owners.

Intel Capital

Three Reasons for VCs to get Serious Three Reasons for VCs to get Serious in Digital Homein Digital Home

Intel Capital

Three Reasons for VCs to get Serious Three Reasons for VCs to get Serious in Digital Homein Digital Home

1.1. There are real problems to solve!There are real problems to solve!

Ease of Use is a Disaster TodayEase of Use is a Disaster Today– Home network setup and management is difficult: Home network setup and management is difficult:

Device set up, interoperability, simple connectingDevice set up, interoperability, simple connecting

– Content not easily viewed on any device:Content not easily viewed on any device:

DRM, CA, Transportability, LicensingDRM, CA, Transportability, Licensing

Difficult Technical Requirements Difficult Technical Requirements – Moving HD streams over home networks with QOSMoving HD streams over home networks with QOS

– Network infrastructure to support IP video serviceNetwork infrastructure to support IP video service

Intel Capital

Three Reasons for VCs to get Serious Three Reasons for VCs to get Serious in Digital Homein Digital Home

2.2. New applications & usage models New applications & usage models will will emerge!emerge!

Trends Coming Together:Trends Coming Together:– Broadband + Digital Content + Home Networks +Broadband + Digital Content + Home Networks +

Mobile Devices + IP ServicesMobile Devices + IP Services

Analog is Internet, this Internet for the HomeAnalog is Internet, this Internet for the Home– Opportunity for new Digital Content & ServicesOpportunity for new Digital Content & Services

Ex: Movies/Sports Ex: Movies/Sports Advertising Advertising

Intel Capital

Three Reasons for VCs to get Serious Three Reasons for VCs to get Serious in Digital Homein Digital Home

3.3. Massive Disruption in CE Industry Massive Disruption in CE Industry

Traditionally Vertical, now Transforming to Traditionally Vertical, now Transforming to Standard building blocksStandard building blocks

– Rapid rate of change in productsRapid rate of change in products

– Rapid technical change (comms, networking, etc)Rapid technical change (comms, networking, etc)

– ODMs, PC OEMS entering CE spaceODMs, PC OEMS entering CE space

100B$+ CE Industry is “tipping on its side”100B$+ CE Industry is “tipping on its side”– Creates investment potential at layers of the stackCreates investment potential at layers of the stack

Intel Capital

Digital Home TransformationDigital Home Transformation

NetworkNetwork

Operating SystemOperating System

MiddlewareMiddleware

SystemsSystems

Digital Content & Dist.Digital Content & Dist.

ApplicationsApplications

TV

sT

Vs

Traditional CETraditional CE EmergingEmerging

StandardsStandards

NetworksNetworks

DigitalDigitalContentContent

ODM/OEMODM/OEM

DriversDrivers

SiliconSilicon

Stereo

Stereo

DV

D P

layerD

VD

Player

PV

RP

VR PC PC

Intel Capital

$200M Digital Home Fund$200M Digital Home Fund Companies aimed at:Companies aimed at:

– Accelerating innovation & new technologiesAccelerating innovation & new technologies

– Convergence of PC & CE market segmentsConvergence of PC & CE market segments

Focus on HW, SW & ServicesFocus on HW, SW & Services Worldwide investmentsWorldwide investments

Intel Capital

Thank You!Thank You!