I bet one can make decent guesses at all of these things with enough research, but there are a lot of more granular things that the topline numbers make me wonder. Who's paying Intel a half a billion dollars a quarter for Internet of Things things? How do volume and margins for datacenter stuff break down into the handful of big cloud customers vs. everyone else? Likewise for Apple's client purchases vs. the rest of the client market.
None of that is to fuss with success, just interesting if you're trying to figure out how the larger trends out there will affect Intel and what they might look like in a few years.
I believe Intel's IoT group includes retail, factory automation and transportation such as in vehicle or drones. Wearables are not a strength. Many/most big purchasers have workloads where Intel is able to enhances value through customized solutions. Customized solutions that enhance value are typically higher margin.
If you are -- like me -- honestly interested in those things, reading Intel's earnings reports can be a good place to start, although the topics are very investor focused. So the best thing would actually be to watch their yearly Investor Meeting presentations, which go in more depth about some of their businesses. They are held every November and this one's from last year: http://intelstudios.edgesuite.net/im/2015/start.ht... That's about the deepest you can go. Another indicator by the way are acquisitions.
The reason data center ASPs declined is actually because Intel in the last few years has been gaining a lot of momentum in the network market. They had a share of 10% in that market in 2015, but this year the big players have started moving from proprietary stuff (I thought ASICs) to Intel architecture because of the advantages -- you can understand that that is process that takes many years. However, those guys don't buy heavy E5s, but they tend to buy the cheaper stuff.
So for Intel this is maybe a $10B market that they are currently just a small player in, but they have consistently grown their MSS in the last few years from 5 to 7 to 10% from 2013-2015.
So this is a separate market for their data center business which causes volume to go up but ASP down. This is actually the opposite of what happens in the rest of the data center, certainly in the 30% growing cloud market, that they tend to move up the stack because of TCO -- total cost of ownership.
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twotwotwo - Friday, October 21, 2016 - link
I bet one can make decent guesses at all of these things with enough research, but there are a lot of more granular things that the topline numbers make me wonder. Who's paying Intel a half a billion dollars a quarter for Internet of Things things? How do volume and margins for datacenter stuff break down into the handful of big cloud customers vs. everyone else? Likewise for Apple's client purchases vs. the rest of the client market.None of that is to fuss with success, just interesting if you're trying to figure out how the larger trends out there will affect Intel and what they might look like in a few years.
dealcorn - Friday, October 21, 2016 - link
I believe Intel's IoT group includes retail, factory automation and transportation such as in vehicle or drones. Wearables are not a strength. Many/most big purchasers have workloads where Intel is able to enhances value through customized solutions. Customized solutions that enhance value are typically higher margin.witeken - Friday, October 21, 2016 - link
If you are -- like me -- honestly interested in those things, reading Intel's earnings reports can be a good place to start, although the topics are very investor focused. So the best thing would actually be to watch their yearly Investor Meeting presentations, which go in more depth about some of their businesses. They are held every November and this one's from last year: http://intelstudios.edgesuite.net/im/2015/start.ht... That's about the deepest you can go. Another indicator by the way are acquisitions.witeken - Friday, October 21, 2016 - link
The reason data center ASPs declined is actually because Intel in the last few years has been gaining a lot of momentum in the network market. They had a share of 10% in that market in 2015, but this year the big players have started moving from proprietary stuff (I thought ASICs) to Intel architecture because of the advantages -- you can understand that that is process that takes many years. However, those guys don't buy heavy E5s, but they tend to buy the cheaper stuff.So for Intel this is maybe a $10B market that they are currently just a small player in, but they have consistently grown their MSS in the last few years from 5 to 7 to 10% from 2013-2015.
So this is a separate market for their data center business which causes volume to go up but ASP down. This is actually the opposite of what happens in the rest of the data center, certainly in the 30% growing cloud market, that they tend to move up the stack because of TCO -- total cost of ownership.
Just saying.
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