Intel: Hardware Sales Opportunities are Evolving, Not Dying Intel

Intel: Hardware Sales Opportunities are Evolving, Not Dying

Intel CEO Brian Krzanich outlined his vision of cloud-based technology supported by the company's hardware for data centers and IoT-connected devices.

The rise of cloud technology hasn’t killed hardware sales altogether. As many VARs are banking on, public clouds, data analytics, artificial intelligence and the Internet of Things (IoT) all have to reside in some kind of hardware.

On Thursday, Intel CEO Bryan Krzanich explained that the company is uniquely positioned to leverage these emerging trends with its line of semiconductors. As more and more companies integrate advanced technology into their core business operations, Intel’s data center product lines will be in high demand, he said. His team is also working on expanding its capabilities around IoT technology for companies moving into the connected devices space.

Krzanich said that in the future, what we today call business or data analytics will collectively be referred to as artificial intelligence. Included in this bucket is deep learning, cognitive computing that powers such functions as optical text recognition (OCR) and text translation. And he wants Intel to dominate both sides of the information flow: IoT-connected devices and data centers.

“The goal of all these acquisitions is to make artificial intelligence pervasive across all of [Intel’s] products,” Krzanich said.

Recent acquisitions support the strategy he outlined, such as those of Movidius and Nervana. Both companies specialize in advanced chips designed to handle intense data processing.

And where Intel’s hardware capabilities expand, opportunities for its partners emerge. VARs worried about future revenue from hardware sales can look to the technologies Krzanich lumped into “artificial intelligence” to both sell equipment and establish recurring revenues from the management of devices.



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