Feeds

Otellini sees slow return to IT normalcy

'2009 was a funny year'

Beginner's guide to SSL certificates

Despite his company's recent strong financial results, Intel president and CEO Paul Otellini doesn't project a recovery for the corporate market anytime soon.

Speaking about the corporate market with analysts and reporters after Intel released its solid fourth quarter 2009 financial results, Otellini said: "I don't know how it's going to play out."

When asked about Intel's projections for 2010, Otellini said: "We're building into our number set a modest recovery of corporate purchases of PCs. That is, we're not building in...anything extraordinary out of that, just sort of a normal return to deployment as the evaluation cycles for the new hardware and Windows 7 get completed."

Putting on his salesman hat, Otellini touted the efficiencies of Chipzilla's latest round of server processors."What we'll continue to benefit from throughout this year is the extraordinary return on investment that is incurred by deploying new server technologies. The last technology was sort of a nine-to-one ROI kind of technology.

"As we deploy the new Xeon products out, its 15- and 20-to-one. So we think that that is compelling - the power conservation associated with that is compelling - and that's one of the things that gives us an optimism independent of PC refresh in the enterprise for 2010."

But despite the efficiencies he touted, Otellini declined to be specific about when the slumbering IT sector might awaken. "We're all guessing," he said. "No one knows for sure."

But he doesn't think that corporate spending will recover soon or whether IT budgeteers will first spend on PCs or new servers. "We're not programming into our guidance or our estimates any kind of overnight recovery of the corporate market. I think for a variety of reasons that will start coming back, but it will come back based upon eval cycles, qualification cycles in IT shops, and then as corporate budgets open up they have to decide whether they want to first buy PCs or servers in terms of IT equipment. And we really haven't seen enough so far...to be confident on when and what the rate of corporate PC refresh would be."

But after just announcing a fourth-quarter net income of $2.3bn that exceeded Wall Street's estimates, Otellini could afford to give himself the luxury of reminiscing about the recent past in a way that implied that he believes the worst is over. "You know, 2009 was a funny year," he said, "as we all went through and know. The first half of the year the lights had gone off, right?"

Indeed they had. And Intel's president and CEO believes they're coming back on - if only gradually. ®

Internet Security Threat Report 2014

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.