1 High Tech Marketing MKTG 376 International Business April 23, 2007 Buzz Schadel

2 A Short History of Buzz Schadel Pittsburgh, PA Princeton U BA Physics Kellogg MM Marketing Ford Motor Co. Family / upbringing are vital Physics is not my career Marketing is a science (almost) Lead a team Work is not college Esprit de corps Intel (80-91) Atlas Telecom eFusion Intel (99 …) Assume ownership Take informed risks Get results Be nimble Listen to the Customer Get good people to help you

3 About Intel Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Sales/ Marketing Technol/ Manufact Digital Enterprise Digital Home MobilityDigital Health S/W and Solutions Intel GEOGRAPHIC REVENUE:Q Q Q Asia-Pacific $4,432 $4,855 $4,293 50% 50% 48% Americas $1,727 $2,003 $1,905 20% 21% 21% Europe $1,722 $1,900 $1,701 19% 19% 19% Japan $971 $936 $1,041 11% 10% 12%

4 High Tech Marketing Start with a clear OBJECTIVE –An end state you want to happen Identify the VARIABLES –That most affect the outcome, and that you can affect IMAGINE scenarios that might work –Cause and effect hypotheses EVALUATE options –Against criteria important to your business Deliver a PLAN –That is clear about what needs to happen when

5 Virtual Simulated or extended by computer software Computer virtualization- making one system behave as multiple independent systems Platform Apps OS Platform Virtual Machine Monitor Apps OS Apps OS Apps OS

6 Strategic Objective 1.Be and be perceived as the leader in providing “platform” virtualization solutions –Intel platform H/W + VMM vendor S/W Or 2.“Own” the virtualization layer on Intel platforms

7 Variables When broad adoption / usage? –With earlier H/W, we want this sooner –Or do we? Support from VMM providers –Microsoft, VMware, Open Source –Timing / quality of support on Intel vs. competition Intel ability to develop and market a VMM –Intel does hardware really well OS vendor reaction to Intel VMM under their OS What do end users and computer OEMs want?

8 Scenarios / Hypotheses Can we get OS vendors to go along with Intel VMM? Only 1 VMM to worry about VMM a commodity Give VMM to OSV? Can we get OEMs and EUs to support Intel VMM? Can Intel “halo” effect drive timely, “better” support for our platforms? Would open source competition accelerate support for our platforms?

9 Evaluate Against Criteria Risk Return 1 2

10 Objective / Strategy Be and be perceived as the leader in providing “platform” virtualization solutions and by driving an arms race via open source Or “Own” the virtualization layer on Intel platforms

11 International Marketing What happens to the 4 Ps of Marketing? –Product Nice to leverage common product development –Price Address realities of regional wealth, without fostering arbitrage –Need low cost differentiated product –Place (distribution) Cater to local infrastructure and business practice –OEMs strong in US; distributors / SIs in APAC; Web Cafes –Promotion THIS needs to be tailored to different cultures

12 Q & A Thank You!