Intel made 100 million in software in 2021 and wants

Intel made $100 million in software in 2021 and wants more

Intel CEO Pat Gelsinger said he wants it “fast” building the business of a company that sells software through SaaS products and software platforms – this measure will allow the electronics giant to fight competitors more effectively. Intel made $100 million from software last year alone, and it’s not over yet.

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During its February meeting with investors, the company, whose software ambitions are second only to NVIDIA, disclosed the level of revenue in this area for the first time. Greg Lavender, head of the new software division, told shareholders that Software “A good opportunity”, and this year it could fetch as much as $150 million, which of course is tiny compared to the chipmaker’s total revenue, which is $70 billion, most of which comes from silicon. However, keep in mind that current Intel CEO Pat Gelsinger was previously the head of VMware and his reign came at a time when virtualization technology was booming.

Intel software products permeate all areas of the company, including the client computing department, the data center and AI department, and the network solutions and peripherals department. Customers are offered both their own developments, created by the company from scratch, and products from acquired companies. Mr. Gelsinger is certain that this strategy is able to provide the company with long-term stable income, which is economically more interesting than income from one-off chip sales, even with significantly lower sales.

The company will offer really interesting products, such as the development of the Israeli startup Screenovate, which was recently acquired by Intel and will debut on Intel Evo laptops by the end of the year. We are talking about the technology of combining screen real estate on different devices with different operating systems – it allows, for example, using a tablet as a second screen for a laptop or controlling smartphones and portable devices directly from a PC. Gelsinger called this solution “Transfer ecosystem to PC” and announced its intention to monetize it, although in all likelihood it will be explicitly paid for by the company’s partners, not end users. Another example is the acquisition of Polish startup RemoteMyApp, which has developed its own cloud gaming platform. This technology will be launched later this year under the name Project Endgame, the technical basis will be the new Intel Arc GPUs.

Responsible for driving Intel’s software and SaaS strategy is Lavender, who was VMware’s CTO when Gelsinger ran the company. Last year, Lavender took on a similar role at Intel, heading up the software and advanced technology division. A top executive recently stated that the company generated $100 million in revenue without any tangible revenue-building efforts. New software products from Intel represent a wide range of solutions built on the company’s own frameworks, tools and libraries, as well as solutions typical of a chip manufacturer: BIOS, firmware, operating system and virtualization technologies.

The company will also benefit from technologies developed by startups and SigOpt, which were acquired last year. The first provides an AI service for load balancing across cloud instances, on-premises servers and gateways; the second is software for optimizing large AI models. These technologies are combined with Intel’s OpenVINO library. Other revenue-generating software solutions include the Intel vPro platform, Intel Unite teleconferencing and collaboration tool, Intel Data Center Manager real-time monitoring and management solutions, and paid support for oneAPI and OpenVINO products. The range is expanded both with new products from the company and with developments from companies that have been taken over.



About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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