It's my understanding that INTC's networking business is based on the future consolidation of the "computer-on-a-chip" theory that you would take the NIC and add it to the processor, along with every other specialized chip on the motherboard.
Darren, Intel has yet to produce such a chip on a Pentium or higher platform and they have never shown such a chip on any roadmap. They have basically ceded <sic> this market to Cyrix/NSM. It is the ultra low-end, that up until now INTC refuses to play in. In any event, the "computer on a chip" concept does not include the network controller since not all (and relatively few) PC's sold into this price range need it. It does include such things as a graphics controller, audio controller, and the super IO controller.
Intel's networking business is not based on a future "computer on a chip" desire, but rather is seen a driver in the industry for higher speed CPU's. They want you and I to buy the latest, fastest (highest margin) CPU. They use their graphics business, and networking business toward this end, driving the need for more robust applications, which in turn require higher speed CPUs.
I cannot see how they would ever get into routers/hubs/etc...
As I stated they are already in these businesses. Please see
intel.com
In addition, they have purchased at least two small networking companies that I know of, and have recently announced a collaboration with FORE regarding ATM adapters and switches. They have not yet moved to the WAN, but they are very much into LAN networking. Its not inconceivable that they would at some point purchase a more WAN-centric company. This networking business is currently generating $1B in revenue and growing. Unfortunately for them, its basically a low margin business that produces drag on their higher margin CPU business. Their motherboard business also falls into this category.
intel.com
intel.com
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Also, taken from last quarterly:
Networking & Communications Products
** During the quarter, Intel introduced two key networking
solutions, the Intel Express? 8100 Router and the Express
130T Standalone Hub. These two products add to Intel?s lineup
of networking solutions designed to help companies create
simple and affordable branch office networks.
** Intel announced its first stackable, scalable, layer 3
switches designed to provide more comprehensive solutions for
campus networking environments.
** Intel announced two additions to its server adapter
family, the EtherExpress? PRO/100+ and the EtherExpress
PRO/100 Intelligent Server Adapter, providing cost-effective
network connections for workgroup and high-performance Web
servers.
** The company announced Intel AnswerExpressSM Support Suite,
an Internet-based service delivering comprehensive PC help,
support and protection to home and small business users. |
