RUMOR MILL
Monday, May 1, 2000
INTEL CHANGES BUSINESS MODEL
Chip-Maker Gives Up On "Post-PC Era," Will Now Sell Stain Removers, Ab-Rollers, Food Dehydrators
Computer chip-maker Intel Corp. plans to begin selling its own branded machine for online access later this year as it seeks to tap the increasing demand for Internet-related equipment, software and services.
In the few months since Intel signaled it intends to play a leading role in the fast-growing networking and wireless technology fields, the company has spent billions on acquisitions, initiatives and new products.
During the company's semiannual meeting with Wall Street analysts in New York, chairman Andy Grove and other executives said those investments already are beginning to pay off.
"The key factor that is motivating us is the realization that the Internet runs on silicon," Grove said. "Our strategy ... is simply to follow the bits as they traverse from computer to computer to the Internet structure and back again."
Intel is just one of many companies including Dell Computer Corp. and Microsoft Corp. that are expanding from computer-based products into wireless products and services, trying to remain competitive as the world moves into what analysts call the "post-PC era." That envisions a world in which most computing will be done on portable devices such as cellular phones, handhelds and notebook computers.
Intel plans to provide "end-to-end solutions" to clients with e-business services, software, chips and, now, even a Web appliance that it will sell to telephone companies around the world.
Intel said it is spending $100 million this year to woo dot-com companies as the single source for getting their businesses running and keeping them running.
In the few months since Intel signaled it intends to play a leading role in the fast-growing networking and wireless technology fields, the company has spent billions on acquisitions, initiatives and new products.
During the company's semiannual meeting with Wall Street analysts in New York, chairman Andy Grove and other executives said those investments already are beginning to pay off.
"The key factor that is motivating us is the realization that the Internet runs on silicon," Grove said. "Our strategy ... is simply to follow the bits as they traverse from computer to computer to the Internet structure and back again."
Intel is just one of many companies including Dell Computer Corp. and Microsoft Corp. that are expanding from computer-based products into wireless products and services, trying to remain competitive as the world moves into what analysts call the "post-PC era." That envisions a world in which most computing will be done on portable devices such as cellular phones, handhelds and notebook computers.
Intel plans to provide "end-to-end solutions" to clients with e-business services, software, chips and, now, even a Web appliance that it will sell to telephone companies around the world.
Intel said it is spending $100 million this year to woo dot-com companies as the single source for getting their businesses running and keeping them running.
