Transcription
Diane BryantExecutive Vice President & General ManagerData Center Group
DisclosuresStatements in this presentation that refer to Business Outlook, forecast, future plans and expectations are forwardlooking statements that involve a number of risks and uncertainties. Words such as "anticipates," "expects," "intends,""goals," "plans," "believes," "seeks," "estimates," "continues," "may," "will," “would,” "should," “could,” and variations ofsuch words and similar expressions are intended to identify such forward-looking statements. Statements that refer toor are based on projections, uncertain events or assumptions also identify forward-looking statements. Suchstatements are based on management's expectations as of February 9, 2017 and involve many risks and uncertaintiesthat could cause actual results to differ materially from those expressed or implied in these forward-lookingstatements. Important factors that could cause actual results to differ materially from the company's expectations areset in Intel's earnings release dated January 26, 2017, which is included as an exhibit to Intel’s Form 8-K furnished tothe SEC on such date. Additional information regarding these and other factors that could affect Intel's results isincluded in Intel's SEC filings, including the company's most recent reports on Forms 10-K and 10-Q. Copies of Intel'sForm 10-K, 10-Q and 8-K reports may be obtained by visiting our Investor Relations website at www.intc.com or theSEC's website at www.sec.gov.3
Key MessagesGrowth drivers remain:move to cloud computing, network transformation, growth of data analyticsNear term:period of enterprise transformationWell positioned for long term growth with an unparalleled array of assets4
Data Center TaxonomyEnterprise & GovernmentWHO BOUGHTTHE BOX?Cloud Service ProviderServerWHAT ISTHE BOX?WHAT’S INTHE BOX?CPUs5ChipsetsStorageEthernetintel Omni-PathFabricNetworkASICsComms Service ProviderNetworkSiliconPhotonicsintel 3D XPoint DIMMsFPGAsSSDs
Data Center TaxonomyEnterprise & GovernmentWHO BOUGHTTHE BOX?Cloud Service Provider-3%CPUs6ChipsetsStorageEthernetYOYComms Service Provider 19%YOYServerWHAT’S INTHE BOX? 8% 24%YOYWHAT ISTHE BOX?2016 Actualintel icsintel 3D XPoint DIMMsFPGAsSSDs
2017-2021 Data Center Growth ForecastGrowth by End-UserData Center RevenueEnterprise & Government 2%CAGR25%Cloud Service Provider 15%CAGRComms Service Provider 10%CAGR30%CAGR13%CPU20176%Highsingle digitgrowthCAGR02017Drivers of CAGR Decline Stall in enterprise on-prem server deployments Delays in new product ramps7Adjacencies2021Changes to Operating Margin Data center first to next process node Increased allocation of corporate expenses Increased contribution from adjacencies
Enterprise & GovernmentEnterprise going through transformationEnterprise Workload location Trends2016 Deployment Location by WorkloadUnitsOn-Prem33% %77%AnalyticsConsiderations8 Public Cloud65%4%96%Model/SimWorkload AttributesWorkload LocationOn-Prem86%Public on complexityData size 8%YOY35%014%20132014Business Needs Time to deploymentCompliance/regulatoryGeographic reachSLAs2015201620172018201920202021Ecosystem Maturity of SaaS offerings Viability of alternate services Availability of resellers / system integratorswith private cloud expertise
Server BoxHybrid cloud Drives Enterprise stabilizationPrivate Cloud Growing as % of New DeploymentsEnabling Hybrid Azure StackComing 2H’2017 25%CAGRServer forecastPrivatecloudAssuming server contractionthrough the planning horizon
Server BoxDouble-Digit Growth* Assumes Enterprise Server decline3 enterprise server CPU scenariosHigh MidData CenterDoubleDigitLow Data erpriseServer-5%CAGR02021Data CenterGrowthEnterpriseServer2017 EnterpriseServer-7%CAGR02017202101020172021* Refers to revenue growth.Forecasts are Intel estimates, based upon current expectations and available information and are subject to change without notice.
Cloud Service ProviderCloud Service Provider Dynamics2/3 of the Cloud is TAM ExpansionEnterprise VS. Cloud Service ProviderServer CPU ASP Gap NarrowingEnterpriseConversion34%Consumer Business52% ASP 6%CAGR 10%CAGR02013Enterprise112016Cloud ServiceProviders (All)Cloud ServiceProviders (Business)NewUsages14%2016Business Cloud delivers higher value services2016Business Cloud11%ASP Premiumvs. Consumer Cloud
Comms Service Provider MomentumComms Service ProviderWireless High bandwidthBroadband Last mile connectivityLegacyCloud Enabled5G ReadyReal-timeControlMove to IAIntel Momentum#1in Wireless Access InfrastructureBased on existing designs and 2016 wins deployingover the next 4 years as 5G ramps12IOTSensorsUltra low latencyAutonomous drivingLow energy, low bandwidthSmart factoriesUltra high bandwidthVideoStreaming HD movies
WinningtheNetwork 19.3B opportunity in 2017*Network Box2016 Network Silicon Revenue MSSNetwork ASP 18.6B TAM ASPMarvellCaviumXeonASPOEM SiXilinxGlobal FoundryOtherNetTIQualcomm (NXP)HiSiliconBroadcomASPIntelDCG PSG2016 Growth 10X the Market Segment13SOCASP02013201420152016
ArtificialIntelligenceOpportunityAI is the fastest growing data center workload2016 ServersAI7%Classic Machine LearningDeep Learning60%40%IA97%IA91%14OtherIA GPGPU2% 1%IA OtherGPGPU7% 2%
Artificial Intelligence PlanBringing the HPC Strategy to AITop 500 % FLOPsNvidia intro%Xeon Phi intro7%35%5%Intel Nervana PortfolioMost widelydeployed machinelearning solutionHigh performance,classic machinelearningNovember ‘1616%20%COMING 2017SKYLAKECOMING 2017KNIGHTS MILL93%60%64%0Jun'10Nov '12Nov '16Nvidia*Intel Xeon Phi XeonProgrammable,low-latencyinferenceSDVS SHIPPING TODAYBROADWELL ARRIA1015LAKECRESTBest in classneural networkperformanceCOMING 2017LAKE CREST
Addressing the Full Data Center OpportunityData Center Silicon TAM 65B 46B2016 MSS36%02016Server SBS logic silicon162021Network logic siliconEthernet & FabricSilicon PhotonicsMemory
Addressing the Full Data Center OpportunityData Center Silicon TAM 65BIntel Omni-Path FabricHigh Performance Fabric SAM 1.1B 46BIntel Silicon PhotonicsSAM 42%Intel MSS0020162016 MSS2021Rack Scale Design36%Next transformation inapplication delivery020162021Server SBS logic siliconEthernet & FabricMemory17Network logic siliconSilicon PhotonicsArchitecting the Intel portfolioto deliver 2X the performanceat the lowest TCO 1.8B9%Intel MSS201620213D XPOINT DIMMsSAM 8B02021
SummaryGrowth by End-User2017-2021Enterprise & Government2%Growth drivers remain:move to cloud computing, network transformation,growth of data analyticsCAGRCloud Service Provider 15%CAGRComms Service Provider 10%CAGR18Delivering low double digit data center growth;Reducing dependency on Enterprise server CPUWell positioned for long term growth with anunparalleled array of assets andunique integration capabilities
Data Center Silicon TAM Addressing the Full Data Center Opportunity 2016 2021 Server SBS logic silicon Network logic silicon Ethernet & Fabric Silicon Photonics Memory 65B 46B 0 Intel Omni-Path Fabric 2016 2021 42% Intel MSS 1.1B 0 High Performance Fabric SAM Intel Silicon Photonics SAM 2016 2021 9% Intel MSS 1.8B 0 3D XPOINT .
