Feeds

Otellini sees slow return to IT normalcy

'2009 was a funny year'

Providing a secure and efficient Helpdesk

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.