Is it just me, or is Intel desperate?

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Posted by Mathew @ 12:02 am on November 8 2006 | |

Okay, someone explain this to me: Intel, a company that makes microprocessors, is backing and selling — but not profiting from — a suite of “Enterprise 2.0″ software for companies that includes blogging software (Typepad), a wiki (Socialtext), and RSS feed software (Simplefeed and Newsgator), called Suite Two.

Is the microchip giant hoping that a little Web 2.0 pixie dust will get sprinkled on it, just like Level 3 seems to be? It’s obviously not in it to make any money, since it has already stated that it doesn’t intend to make any from the venture. So it must be hoping that companies will need to upgrade their machines to dual-core monsters to run all that Enterprise 2.0 gee-whizzery, right? Please.

The whole point of these kinds of software is that they are lighter and more versatile — and cheaper — than traditional ways of doing business with employees and customers. So why would Intel want to bundle them up and charge an arm and a leg for them? More to the point, why would anyone go for that deal?

The implication is that big companies are so slow-moving and dim-witted that they need the Intel name to get them comfortable with anything new, and are willing to pay through the nose for it. Unfortunately, that’s probably not far from the truth in a lot of cases. And meanwhile, Intel the plumber gets to look all cool by hanging with the hip Web 2.0 crowd.

Update:

Josh Bancroft, who works at Intel, has a great overview on his blog Tiny Screenfuls.

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Mathew posted this article under Social networks, Web2.0 on Wednesday, November 8th, 2006 at 12:02 am. . You can follow any responses to this entry through the RSS 2.0 feed, and you can also view Technorati Linkbacks or check for other responses using YackTrack.

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Comments for “Is it just me, or is Intel desperate?”

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Jim Courtney 1 year ago 1 point
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I tend to look at these deals and ask -- ok -- how does this get to the customer. Now Intel OEM's processors to PC manufacturers. So is this something were a trial package will come with every Intel (Dual Core) PC via the PC mfr? But PC mfrs like to make their own bundling deals.

If not, are they getting into the retail software business? But they don't have the channels for software distribution. And I can see distributors being slow to pick it up unless Intel hss done a not marketing blitz with Ingram, TechData, etc.

Seems like one of those cases where they have run out of ideas on how to incrase hardware sales but then start grasping at strawa in an attemtp to associate their names with the "latest trend>'

I simply say "Huh?"!!

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gdubya 8 months ago 1 point
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I don't think the point is to make money on these kinds of ventures. I think the point is to make money on the core products, by growing the overall market pie.

Here is one depiction of the logic behind it all:
- Web 2.0 'stuff' engages more people than ever before.
- Those people have to use computers to engage.
- More computers = more Intel silicon needs.

Enabling an industry with more ways to use your key products is a great way to run a business.

Kudos to Intel.

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