Intel Corporation · NASDAQ:INTC
Intel — Investor Day (November 2014)
38 slides from Intel's investor day presentation, Nov 21, 2014
Slide 1: Investor Meeting 2014
INVESTOR MEETING 2014 Diane Bryant Senior Vice President & General Manager Data Center Group
Slide 2: Key Messages
Key Messages Big industry trends fuel data center growth Investing to win across workloads & segments Revenue CAGR at 15% through 2018*
Slide 3: Capitalizing on Industry Trends
Capitalizing on Industry Trends Move to Digital Jevons Paradox Lh Service Economy Hl Increasein <""~ = ? technology Increases Billions efficiency — rate of of connected / . DEVICES Lp. consumption © Build out of the i Lp on, q cLoup New SERVICES TOVeera Tire
Slide 4: ... and Drive Unprecedented Economic Results
... and Drive Unprecedented Economic Results China’s “Singles’ Day” (11/11) = 3X US Cyber Monday Sales
Slide 5: China's Singles' Day 2014
China's Singles’ Day 2014 11/11
Slide 6: Jevons Paradox
Jevons Paradox Impact of high volume x86 servers Move to virtualization fuels growth 1996-2014 Revenue 2009-2014 Mu Server Units === System Cost i ? m Server CPU Revenue REV CAGRI7% ‘ at HI, : ; il 1996 2014F 2009 2010 2011 2012 2013 2014F SHV servers delivered 80% system cost savings over 5X improv
Slide 7: Data Center Transformation
Data Center Transformation Enterprise Cloud Service Telco Service Technical IT Provider Provider Computing Pee ee oe / In 2014, 12% of china? aesant / Enterprise IT deploying | Vr / . VMware private cloud Ay | ll / pels i cloud, | Tencent Deployed NFV / SDN for / Cloud network / ' Semantic analysis
Slide 8: Shipped Compute Capacity
Shipped Compute Capacity Compute Capacity Drives Purchase Decision Analyzing DCG Growth 2 Socket Xeon Processor Mix ss 100% Shipped Compute* 2 CAGR +39% 2 ba > val me Basic *Specint x Volume 0% SKUs 2010 2011 2012 2013 2014F 2010 2014F Increased capacity per system drives up processor mix 70% of vol
Slide 9: Compute Capacity Drives End-user Value
Compute Capacity Drives End-user Value Enterprise IT TCO Amazon's TCO Analysis Cost / Bandwidth Server A Server B Customized SKU provides Up to 14% more performance for 2-4% incremental TCO SKU selection provides Up to 44% TCO savings over 4 years
Slide 10: Data Center Growth Forecast
Data Center Growth Forecast 2014 2018 2014 2018 m Enterprise m Tech Computing m™ Cloud = Telco mcPU ®non-CPU
Slide 11: Four Growth Drivers
New Architectures New Usages Four Growth Drivers CLOUD NFV / SDN HPC BIG DATA
Slide 12: Resource Utilization
Resource Utilization Jevons Paradox: Cloud Architecture Increased efficiency through the Cloud Revenue Acceleration: Easier to create new apps and services OpEx Efficiency: Automation of the data center CapEx Efficiency: Maximize use of system resources System 1 System 2 Es Traditional App App App A
Slide 13: Cloud Computing Growth
Cloud Computing Growth Connected Devices + Apps + New Services + New Service Providers Annual Intel CPU sales @) = 2. Y wyweg mm sf F el @ 2 — Other names and brands may be claimed as the property of others For 2009 2010 2011 2012 2013 2014F Tier1 CSP mTier2CSP mPrivate Cloud tis subject to change w
Slide 14: Public Cloud SPs
Public Cloud SPs: IBM Soft Layer stream. oe nt 45 Clouds 10% 69% ineneee in ora MSS to Revenue 94% CAGR 09-14 Source: Intel branding Intel Inside cloud services Exposing Intel Value a CenturyLink- ( DP rackspace. SOF TLAY=R’ Powered by ervice Providers (inte ) l Applications & Services Cloud Technol
Slide 15: Four Growth Drivers: NFV / SDN
New Architectures Four Growth Drivers NFV / SDN P1.0100616100701 1001
Slide 16: IA Enabled Across the Network
&) o-3 enirar ==) ==) ame Core oO Switch Network Infrastructure Wireless / Wireline Infrastructure Data Center Network 6x9 _ —_— = = al a = M Small Cell ree | S| == Mindspeed & Avago P= aS [--—=| | IA Enabled Across the Network STEP 1: Consolidate workloads on Intel Architecture STEP 2: Virtualize &
Slide 17: NFV / SDN Growth
NFV / SDN Growth Accelerated network transformation 2011 2012 2013 2014 Pilots + 1st Commercial Deployments = atat BTe Telefonica oe NFV Research Results 9 Use Case Definitions Proof-of-Concepts Alcatel-Lucent brings IP routing to cloud with most complete portfolio of virtualized IP Edge router func
Slide 18: Slide 18
Slide 19: Maximizing Intel Opportunity & Return
Maximizing Intel Opportunity & Return $ Network SAM 2014 7.5% MSS 4 2.5pts YoY 2008 2014F 2008 2014F
Slide 20: NFV / SDN Ecosystem Growth
NFV / SDN Ecosystem Growth Intel® Network Builders Program Growing the ecosystem to accelerate NFV and SDN solutions CHRP ceawister ome Content ine FE extreme Me Huw @rate IQ Xia OJDSU Grom Lanner VU “inden Coetrounds Neusor’ [EGE] NOKIA ORACLE’ overture) © ruumys RReorcs rortwe “COSMOS Quanta Sogun
Slide 21: Four Growth Drivers: HPC
New Architectures Four Growth Drivers PG1b06161007601 1001
Slide 22: High Performance Computing Growth
High Performance Computing Growth Government & Research Commercial New Usages Move from Physical to Digital mae ee Top 500 MSS. mSystem__l Sys w/ Accelerator 100%: Cloud % of HPC spend in Public Cloud TODAY BY 2017 Sources: Top S00.org, hpcuserforum, HPCwire, IDC, Intel Other names and brands may be
Slide 23: HPC: Maximizing Intel Value
HPC: Maximizing Intel Value Advance the Parallel Ecosystem Maximize Si Opportunity Expand System Capability + #1 supercomputer runs on * TrueScale Infiniband growth + 41 Intel Parallel Computing Xeon Phi 50% YoY Centers + 24 gen design wins > 1% gen * Design wins for Omni Path * 14 countries sales t
Slide 24: Four Growth Drivers: Big Data
New Architectures Four Growth Drivers P1.0100616100701 1001 BIG DATA
Slide 25: Jevons Paradox: Big Data Growth
Jevons Paradox: Big Data Growth 10101011 New Average Big Data TAM Server Cost — co 2003-2013. $41B Storage TAM Cost / GB 2003-2013 ources: IDC WW Big Data Forecast 2014-2018, Intel estimates
Slide 26: Big Data: Maximizing Intel Value
Big Data: Maximizing Intel Value cloudera’ ™ Distribution Zs Hadoop optimized for IA eS pop THE MICHAEL J. FOX FOUNDATION . Industry enabling with PaaS FOR PARKINSON’S RESEARCH ¢ Builds upon full Intel portfolio: Xeon, Xeon Phi, fabrics, flash, FPGA |! KNIGHT yea CANCER INST Oregon Health &S Source:
Slide 27: BASIS, An Intel Company
UY, BASIS An Intel Company Other names and brands may be claimed as the property of others. BIG DATA analytics
Slide 28: Products and Technologies
Products and Technologies Processors: Standard to Custom Silicon Photonics Rack Scale Architecture
Slide 29: Standard to Custom Roadmap
Standard to Custom Roadmap Grantley : i Grantley a 8 100s SKUs i7 node controllers i544 nacitredaeeras Grantley i a in Grantley : >10 customer 3 FPGAs 28 NICs 335 SKUs 2 indevelopment: engagements 1 memory ASIC : Proprietary : Boarddesign, : Performance — : Inclusion of 5 Customer : interface licens
Slide 30: Silicon Photonics Market Opportunities
3 Market Opportunities Shipping Now Data Centers Fiber Optic Replacement Disruptive Cost Structure Cost / Bandwidth Density Intel Silicon Photonics re uf Other Silicon Photonics ~2x ~3y ~az Discrete Fiber ~3x ~6y ~10z Source: intel 100G 400G 1TB Silicon Photonics 2015 HPC Copper Replacement I/O = 30
Slide 31: Silicon Photonics: Moving Data with Lasers
Source: Intel Silicon Photonics: Moving Data with Lasers Intel Silicon Photonics module CORNING CONEC Multiple suppliers commercializing MXC standard tabula Silicon Photonics Revenue Forecast of : 1 = = 2014 2015 2016 2017 2018 Other names and brands may be claimed as the property of others,
Slide 32: Rack Scale Architecture
Rack Scale Architecture 2015 ¢ With Cloud the rack becomes the unit of compute * Compose & decompose resources dynamically based on application need Up to 1.5X servers per rack Up to 5X reduction in provisioned power Up to 3X fewer cables Customers & Partners Huawel J
Slide 33: Competition
Competition High interest in data center business + Leadership roadmap across Server, Storage & Network 1 2 ARM * Customization for targeted workloads ¢ ~$2B annual R&D investment * Broadest ecosystem & compatibility p OpenPOWER * Best perf /TCO | AMDZI | Any time | work out the cost models, it’s no
Slide 34: Summary
enter Summary e Industry trends create continued . revenue growth opportunities e Investing to win across Server, Storage, network ——, e Performance and TCO leadership e Expanding technology portfolio — fabrics, silicon photonics, customization driving revenue growth « Revenue CAGR of ~15% through 2
Slide 35: For More Information
For More Information NFV Service Chaining Big Data Analytics in Retail Rack Scale Architecture Silicon Photonics in HPC
Slide 36: Legal Disclaimers
Legal Disclaimers Software and workloads used in performance tests may have been optimized for erformance only on Intel microprocessors. Performance tests, such as SYSmark and obileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any o
Slide 37: Risk Factors
Risk Factors The statements in the presentations and other commentary that refer to plans and expectations for the fourth quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans," “bel
Slide 38: Investor Meeting 2014
INVESTOR MEETING 2014 SANTA CLARA, NOVEMBER 20