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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: Jim McMannis who wrote (75452)3/5/1999 3:29:00 PM
From: Jeff Fox  Read Replies (1) of 186894
 
Jim, re: Great article on the CPU ID debacle. It frames the issue accurately.

Just now CNBC NASDAQ report cited that Intel was the only high tech to dip into negative territory today on reports of concern that the the PIII acceptance is weaker than expected. The CPU ID debacle was cited as the primary reason for this.

Sorry for Intel, the CPU ID issue is big. It isn't going away.

The article you cited tells a lot of the real story - better than others I've seen, but still falls short from a full disclosure of Intel's larger plans to make the PC secure from its owner/users.

Here are highlights clipped from your article:

zdnet.com

"The biggest security threat: You"
By Robert Lemos, ZDNN February 25, 1999 4:55 PM PT

PALM SPRINGS, Calif. -- Who's the biggest threat to computer security? A foreign spy? A malicious hacker? Maybe neither. According to an encryption expert from Intel Corp., just as potent a threat could be none other than you -- the ordinary computer user.

"This is a new focus for the security community," said David Aucsmith, security architect for chip maker Intel. "The actual user of the PC -- someone who can do anything they want -- is the enemy."
. . .

Privacy fight may escalate
With such turmoil around the chip ID, such a revelation of the industry's view of users might be construed as impolitic at best.

"Intel originally tried to convince users that the processor serial number would make e-commerce transactions safer," said Jason Catlett, president and CEO of privacy information firm Junkbusters.com.

"The real reasons have nothing to do with protecting the user. They want to allow for better copy protection and, possibly, tracking on the Internet."
. . .

Not backing down
That doesn't mean that Intel is backing off, however. During another presentation, Michael Glancy, general manager of Intel's platform security division, told developers to expect the chip ID in all the company's products soon. "You should anticipate that this will be used all across the major product lines," he said.

His statements were not just limited to PCs, either. Internet appliances and portable devices based on Intel's StrongARM processor will soon have the technology as well. "Those devices will need
technologies like this to be more secure," he said.

In the end, unless something comes from the privacy protests, Intel will be putting the processor ID technology everywhere.

"We have announced this feature with the Pentium III,"said Glancy. "We intend to ship it."

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What is Intel thinking?

Why is this initiative sprung on the market with the PIII introduction without testing or preparation?

Now why such determination even when it is now proven to be something that Intel Customers do not want? (I say "customer" here meaning the folks that spend actually use the PCs)

Why is Intel willing to lose over 15% market value worth $30billion in stockholder equity to pursue the mission of eliminating user control in computing?

I for one believe Intel should be a business. I own it to achieve gains resulting from it doing business. I am not interested in Intel becoming a social force.

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This issue has cost me over $20 per share so far - Needless to say I am not a happy stockholder on this issue.

Jeff
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