March 30, 1998, TechWeb News ------------------------------------------------------------------------ Intel Eyes Graphics Space With Its DVD Software By Kelly Spang Waltham, Mass. -- Launching another tangent to its core chip business, Intel Corp. will deliver a software product called Intel DVD this spring that executes DVD through the system's microprocessor rather than through a dedicated decoder chip. The introduction is slated for May. But rather than blazing new trails, sources briefed on the plans describe the chip maker's efforts as "reinventing the wheel"-given that hardware and software DVD solutions are already available. With Intel DVD, however, the chip giant is positioning the software to replace hardware DVD in PCs and displace software competitors. Industry analysts point to other Intel objectives achieved by developing the software, such as using up some R&D cash, providing resellers with an application that devours processor performance and claiming more territory within the PC. Intel's motivation, however, is explained by an internal road map reviewed by CRN that projects the Pentium II processor combined with DVD-ROM will repeat the Pentium processor-CD-ROM "phenomenon" of 1994. To meet this goal, 45 Intel engineers developed Intel DVD, which provides MPEG-2 video and audio decoding, according to the road map. Resellers are not likely to find Intel DVD through the channel except when it is already loaded in PCs. Intel is targeting system OEMs, said sources close to the company. "We've always known that playback of DVD content would play into the CPU capabilities," said Clint Chao, senior director of marketing for the PC and Codec division at C-Cube Microsystems Inc. of Milpitas, Calif. As a provider of hardware-based DVD, C-Cube is going head-to-head with software solutions, including the impending arrival of Intel DVD, from the perspective of pure system performance and throughput. "By offering DVD daughter cards at a low cost, PC OEMs can think of other things to do with the CPU," Chao said. Software DVD makers said they are not all that concerned by Intel's entrance into their market because they don't believe Intel, Santa Clara, Calif., can offer the same level of support. "Support is key," said Pier DelFrate, vice president of marketing for Mediamatics, a Fremont, Calif., supplier of DVD software. "I'm not sure that Intel is set up to support all the different manufacturers with all their different configurations," he said. Competitors also point to their ability to customize products, said Joe Monastiero, director of software marketing for Zoran Corp., a Santa Clara-based company producing both software and hardware DVD solutions. By the time Intel ships its first product, Zoran will already be in the channel with its second-generation product, he said. Intel DVD is priced at less than $5 for large quantities, which is competitive with other product pricing, DelFrate said. In addition, Intel is also offering an Intel DVD Qualification and Integration Kit at no charge to help OEMs integrate the product, according to the road map. "The technology is there-it's just a matter of getting some [DVD] standards and price point drops," said Mike Klingbiel, sales manager for Lewan & Associates, a Denver-based VAR. Demand for DVD hasn't been strong. Commercial customers are more concerned with speed increases and price drops on CD-ROM drives right now, Klingbiel said. Until DVD format standards are agreed upon in the industry, some VARs, such as Computer Connection located in Damariscotta, Maine, are not offering DVD unless specifically requested by a customer, said President Jason Simonds. Minimum system requirements for Intel DVD include:a Pentium II 266MHz or higher; the Intel 440LX chipset or later version; a graphics controller supporting the Accelerated Graphics Port; and a second-generation DVD-ROM drive, according to the road map. Operating system support includes Windows 95, Windows 98 and DirectShow. At 266MHz, however, 90 percent of the CPU's processing power is dedicated to the DVD application. At 300MHz, between 75 percent and 80 percent of the processor is consumed, said Monastiero. Hardware assistance is still required at 266MHz and even 300MHz as the graphics controller must incorporate motion-compensation technology to provide full-motion video with a software DVD product. The delivery of Intel DVD will follow the chip makers' introduction of its 350MHz and 400MHz Pentium II processors, which will have the power to offer "headroom" for software DVD playback, sources said. Just last month at the Intel Developer Forum, Pat Gelsinger, vice president and general manager of the Intel business platform group, pointed to soft migration of PC functions, including DVD, as a means of cutting costs out of the platform to address the growing sub-$1,000 PC market. Intel will specifically target software migration of audio, DVD and modem functions into 1999, Gelsinger said at the forum. However, given the processor speeds necessary for running software DVD, it is not likely Intel DVD will be viable for low-cost PCs until at least the fourth quarter of this year when Intel introduces its Mendocino processor, a low-cost 300MHz Pentium II with 128 Kbytes of integrated Level 2 cache. By the first half of 1999, Mendocino speed is expected to increase to 333MHz. Intel officials declined comment. Copyright (c) 1998 CMP Media Inc. |