High Tech Marketing MKTG 376 International Business April 23, 2007

1. High Tech MarketingMKTG 376 International BusinessApril 23, 2007 Buzz Schadel

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

3. Intel Sales/ Marketing Technol/ Manufact S/W and Solutions Digital Enterprise Digital Home Mobility Digital Health About Intel • Intel, the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. GEOGRAPHIC REVENUE: Q1 2007Q4 2006Q1 2006 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 Apps OS Apps OS Apps OS Apps OS Virtual Machine Monitor Platform Platform

6. Strategic Objective • Be and be perceived as the leader in providing “platform” virtualization solutions • Intel platform H/W + VMM vendor S/W Or • “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? Can we get OEMs and EUs to support Intel VMM? Only 1 VMM to worry about VMM a commodity Give VMM to OSV? Can Intel “halo” effect drive timely, “better” support for our platforms? Would open source competition accelerate support for our platforms?

9. 2 Evaluate Against Criteria Risk 1 Return

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!