RE: "These numbers are not from Intel Capital, these are from the new operating divisions, they are wholly owned and operated by Intel. "
Hi John,
I see Greg's point, which is, even though these are not part of Intel Capital, they are still new, emerging operating divisions (and so could need more RND infusion than a mature business). i.e. I am a big believer in Intel investing into the non-IAG today for tomorrow, even if it negatively impacts the short-term.
Having said that, I'm hoping Intel is prudent about their new, emerging businesses. They blew quite a bit of money on some that didn't work out - the arrangement with SAP comes to mind - that was a lot of money on a new operating division that went down the drain.
However, I think the money applied for the Servers and nw communication groups is money well spent because these are fast growing markets and Intel is showing signs of strengths in them. Investing in these areas today is necessary, because for example, if Intel doesn't spend money on proliferating their standards today, there won't be a tomorrow for that group. So, this money is well spent now, for a better future. Btw, Broadcom (I believe) is expected to grow =<40% next year. So, Intel appears to be on good track in this group. The Server group is also on good track - the results in the latest IDC report demonstrate this.
However, it's the Server farms that I'm wondering about, namely, because they are not in the top of their category. However, I do not yet have any opinions on this area since it is not something I have looked into.
Regards,
Amy J |
