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Big Data
          Nick Knupffer

             Marketing Director PRC & APAC
             DCSG, Intel




1
Video goes here
Video download link:
https://dl.dropbox.com/u/85091041/INTEL_BIG_DATAv20_HD.mo
v
Every two days,
    we create as
    much information
    as we did from
    the dawn of
    civilization up
    until 2003




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3
Big Data Phenomenon

    1.8ZB in 2011                       750 Million                                 966PB
    2 Days > the dawn of civilization   Photos uploaded to Facebook in              Stored in US manufacturing
    to 2003                             2 days                                      (2009)




    209 Billion                         200+TB                                      200PB
    RFID tags sale in 2021:             A boy’s 240’000 hours by a MIT              Storage of a Smart City project
    from 12 million in 2011             Media Lab geek                              in China




    $800B                               $300B /year                                 $32+B
    in personal location data within    US healthcare saving from Big               Acquisitions by 4 big players
    10 years                            Data                                        since 2010



    “Data are becoming the new raw material of business: an economic input almost on a
     par with capital and labor.”
                                                                                                 —The Economist, 2010

    “Information will be the ‘oil of the 21st century.’”
                                                                         —Gartner, 2010


4
4
What is Big Data?

               Traditional Data                            Big Data

    Volume       Gigabytes to Terabytes             Petabytes and beyond



    Velocity       Occasional Batch –              Real-Time Data Analytics
                Complex Event Processing


    Variety        Centralized, Structured             Distributed,
                        i.e. Database            Unstructured Multi-format


                 Vast Amounts of Information; Virtually Free


5
5
Why is Big Data Important?


                                           Smart City Project:                                          Up to 50% Decrease
                                           Improve Public Safety,                                                in Product
                                           Boost Economic                                                 Development and
                                           Growth                                                           Assembly Costs1



                                                                                                         Online Retailer
                                           Generate Revenue                                           Generated 30% of
                                           from Data Analytics of                                 Sales Due to Analytics
                                           B2B Sales?                                                            Driven
                                                                                                       Recomendations1


                                        Data is the Raw Material of the Information Age
1::McKinsey Global Institute Analysis
6
6                                                       *Other brands and names are the property of their respective owners.
Big Data Solutions: Volume


Traditional Storage       Distributed Storage
                              Architecture
                                          Application Servers
                                                      Application                              Ten 9’s Durability &
                                                                                                50% Lower TCO
                                                   Storage Client


                              Metadata                                           Storage
                               Servers                                           Servers
           SAN                                                                     Storage
                                Metadata
        (Storage Area           Services                                           Services
          Network)                                                                             1000s of Nodes &
                                                                                                 >200GB’s/sec
                                                                                                 Performance



7
7                       *Other brands and names are the property of their respective owners.
Big Data Solutions: Velocity


                           In Memory Analytics                                                       Network Edge Analytics




                                                                                                  Stream Processing Analysis & Decision Support Applications




     Search and Analysis of 53 Million Customer Records:                                        Analyze Data as its Collected to
       From 2-3 Hours to 2-3 Seconds!1                                                          Make Near Real-time Decisions

8
8
1: Hilti Corporation case study
                                                 *Other brands and names are the property of their respective owners.
Big Data Solutions: Variety

               Unstructured                                                  Emerging     Analytical Paradigms
              Multi-format Data                                            Technologies




              Structured Data                                               Relational
                                                                            Database




                                                                                                        EXALYTICS




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    *Other brands and names are the property of their respective owners.
The Challenges of Big Data



                 Massive scale and growth of unstructured data
                  80%~90% of total data
     Volume       Growing 10x~50x faster than structured (relational) data
                  10x~100x of traditional data warehousing


                 Realtime rather than batch-style analysis
     Velocity     Data streamed in, tortured, and discarded
                  Making impact on the spot rather than
                   after-the-fact


                 Heterogeneity and variable nature of Big Data
                  Many different forms (text, document, image, video, ...)
     Variety      No schema or weak schema
                  Inconsistent syntax and semantics




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Big Data is Different from
                Traditional Data
                                    New Workloads/Methodologies to Design New Platforms

                                                 Processing              Data Management                Analytics



                                                                  Real-time Analytics                               Distributed Analytics

                                                 Scale-up
                                                                                                            Distributed
     Processing Speed




                                                 Platform
                                                                                                             Hierarchy
                         Descriptive Analytics                         Predictive/Prescriptive
                                                                              Analytics


                        Relational Database                                   NoSQL and NewSQL
                               (SQL)
                                                 Data Warehouse                                         Flexible
                                                                                      Scale-Out         Schema
                                                                                   Cluster Platform
                                      Batch-style Analytics


                                          1x                               10x                               100x                      Volume

                                Traditional Data                                             Big Data


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The Major Source of Sensed Data
     Internet of Things (IoT) and Smart City

 Internet of Things (IoT) is a major source              Most IoT apps are relevant
              for sensed data                             to Smart City, funded
                                                             by governments

                                  Intelligence                                  Environment Protection
                                    (Processing)
                                                       Smart Agriculture

                                                                                    Smart Logistics
                                 Interconnect
                                                         Public Safety
                                (Communication)
                                                                                       E-Health

                                  Intelligence     Intelligent Transportation
                                      (Control)
                                                                                     Smart Home

                                                          Smart Grid
                             Instrumentation                                    Industrial Automation
                                      (Sensing)




12
12   Source: GreatWall Strategy Consultants
Intel’s Role in Big Data



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Intel’s Role in Big Data

       Accelerating big data analytics through faster and more effective CPU,
       Storage, I/O, Network platform.


       Driving innovation in big data applications by providing optimized software
       stack and services.


       Foster the growth of big data ecosystem through broad collaboration with
       partners.


       Investing in Solution Research and Services for Big Data



Data of any type, under any provisioning method, is analyzed to find insights that drive
                        business, social, and ecological value.

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Universal Insights
     Instant analysis at every level, from the sensor to the datacenter


                                                                                          Visualization & Interpretation




                                                                   Streaming                     [Un]Structured                 Batch
     Horizontal & Vertical Scale




                                                 E7                 Analytics                                                  Analytics
                                                                                                        Data


                                                 E5
                                                                                          Data Acquisition
                                   Microserver


                                             E3                                 Local Analytics
                                                                                            Complex Event Processing
                                                                                             Analytics Processing
                                                                                                  Preprocessing/
                                                                                Storage


                                                                                                Cleansing/Filtering/
                                                                                                    Aggregation
     Horizontal Scale




                                                      Data Acquisition                                                     Video Analytics


                                                                          Sensors                                                            Cameras




15
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Immediate Insights

                          Intel builds performance customized
                             and optimized extreme solutions
                             to drive immediate insights and
                             discoveries.

                          From Telecoms, to Financial
                             Services, to Smart cities,
                             Manufacturing and Healthcare,
                             Intel delivers robust security and
                             trusted extreme performance
                             computing, software, storage and
                             network solutions customized
                             and optimized for every industry;
                             leading to insights and
                             discoveries that better our world.


16
16
Insights for everyone
      New analytics economics through scale and standards.
             Smart Building                 Smart Grid
               sensors                       sensors
                                                                                                             Industrial
                                                                                                            Automation
                                                             Pollution                                        sensors
                                                              sensors

                                                                    Meteorological         Smart
                                                                       sensors             meters




               INTELLIGENT CITY                                                                                   INTELLIGENT
                                                                                                                    FACTORY



                                             INTELLIGENT                     INTELLIGENT
                                               HOSPITAL                       HIGHWAY

                                                      Sensors on
                                                                                                Inductive   Traffic cameras
             Portable medical     Medical sensors    Smartphone
                                                                          Sensors on             sensors
             imaging services     on ambulances
                                                                           Vehicles


     Intel’s open platforms, open software, open standards approach and industry
     leadership will drive down the cost and drive up the pace of innovation, putting
     affordable Big Data analytical capabilities within everyone’s reach.


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Summary




     1          Big Data is here and growing rapidly




     2          Intel is well positioned from a software stack and platform basis




     3          Intel is committed to investing in new technology to address
                 more demanding big data requirements of the future




18
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BACKUP




19
19
Legal Disclaimer
INFORMATION IN THIS DOCUMENT IS PROVIDED IN CONNECTION WITH INTEL PRODUCTS. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO
ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS DOCUMENT. EXCEPT AS PROVIDED IN INTEL'S TERMS AND CONDITIONS OF SALE FOR SUCH
PRODUCTS, INTEL ASSUMES NO LIABILITY WHATSOEVER AND INTEL DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY, RELATING TO SALE AND/OR USE OF INTEL
PRODUCTS INCLUDING LIABILITY OR WARRANTIES RELATING TO FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, OR INFRINGEMENT OF ANY PATENT,
COPYRIGHT OR OTHER INTELLECTUAL PROPERTY RIGHT.
• A "Mission Critical Application" is any application in which failure of the Intel Product could result, directly or indirectly, in personal injury or death. SHOULD
   YOU PURCHASE OR USE INTEL'S PRODUCTS FOR ANY SUCH MISSION CRITICAL APPLICATION, YOU SHALL INDEMNIFY AND HOLD INTEL AND ITS SUBSIDIARIES,
   SUBCONTRACTORS AND AFFILIATES, AND THE DIRECTORS, OFFICERS, AND EMPLOYEES OF EACH, HARMLESS AGAINST ALL CLAIMS COSTS, DAMAGES, AND
   EXPENSES AND REASONABLE ATTORNEYS' FEES ARISING OUT OF, DIRECTLY OR INDIRECTLY, ANY CLAIM OF PRODUCT LIABILITY, PERSONAL INJURY, OR DEATH
   ARISING IN ANY WAY OUT OF SUCH MISSION CRITICAL APPLICATION, WHETHER OR NOT INTEL OR ITS SUBCONTRACTOR WAS NEGLIGENT IN THE DESIGN,
   MANUFACTURE, OR WARNING OF THE INTEL PRODUCT OR ANY OF ITS PARTS.
• Intel may make changes to specifications and product descriptions at any time, without notice. Designers must not rely on the absence or characteristics of any
   features or instructions marked "reserved" or "undefined". Intel reserves these for future definition and shall have no responsibility whatsoever for conflicts or
   incompatibilities arising from future changes to them. The information here is subject to change without notice. Do not finalize a design with this information.
• The products described in this document may contain design defects or errors known as errata which may cause the product to deviate from published
   specifications. Current characterized errata are available on request.
• Intel processor numbers are not a measure of performance. Processor numbers differentiate features within each processor family, not across different
   processor families. Go to: http://www.intel.com/products/processor_number.
• Contact your local Intel sales office or your distributor to obtain the latest specifications and before placing your product order.
• Copies of documents which have an order number and are referenced in this document, or other Intel literature, may be obtained by calling 1-800-548-4725, or
   go to: http://www.intel.com/design/literature.htm
• Intel, Sponsors of Tomorrow and the Intel logo are trademarks of Intel Corporation in the United States and other countries.

• *Other names and brands may be claimed as the property of others.
• Copyright ©2012 Intel Corporation.




20
20
Risk Factors
     The above statements and any others in this document that refer to plans and expectations for the first 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,” “believes,” “seeks,” “estimates,” “may,”
     “will,” “should” and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also
     identify forward-looking statements. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could
     cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors
     that could cause actual results to differ materially from the company’s expectations. Demand could be different from Intel's expectations due to factors including
     changes in business and economic conditions, including supply constraints and other disruptions affecting customers; customer acceptance of Intel’s and
     competitors’ products; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Uncertainty in global
     economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively
     affect product demand and other related matters. Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are
     fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are
     affected by the timing of Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, including
     product offerings and introductions, marketing programs and pricing pressures and Intel’s response to such actions; and Intel’s ability to respond quickly to
     technological developments and to incorporate new features into its products. Intel is in the process of transitioning to its next generation of products on 22nm
     process technology, and there could be execution and timing issues associated with these changes, including products defects and errata and lower than anticipated
     manufacturing yields. The gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation,
     including variations related to the timing of qualifying products for sale; changes in revenue levels; product mix and pricing; the timing and execution of the
     manufacturing ramp and associated costs; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or
     resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets. The majority of
     Intel’s non-marketable equity investment portfolio balance is concentrated in companies in the flash memory market segment, and declines in this market segment
     or changes in management’s plans with respect to Intel’s investments in this market segment could result in significant impairment charges, impacting restructuring
     charges as well as gains/losses on equity investments and interest and other. Intel's results could be affected by adverse economic, social, political and
     physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters,
     infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Expenses, particularly certain marketing and compensation expenses, as well
     as restructuring and asset impairment charges, vary depending on the level of demand for Intel's products and the level of revenue and profits. Intel’s results could
     be affected by the timing of closing of acquisitions and divestitures. Intel's results could be affected by adverse effects associated with product defects and errata
     (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues,
     such as the litigation and regulatory matters described in Intel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting us
     from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other
     remedies such as compulsory licensing of intellectual property. A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s
     SEC filings, including the report on Form 10-Q for the quarter ended Oct. 1, 2011.




     Rev. 1/19/12


21
21

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Intel Cloud Summit: Big Data

  • 1. Big Data Nick Knupffer Marketing Director PRC & APAC DCSG, Intel 1
  • 2. Video goes here Video download link: https://dl.dropbox.com/u/85091041/INTEL_BIG_DATAv20_HD.mo v
  • 3. Every two days, we create as much information as we did from the dawn of civilization up until 2003 3 3
  • 4. Big Data Phenomenon 1.8ZB in 2011 750 Million 966PB 2 Days > the dawn of civilization Photos uploaded to Facebook in Stored in US manufacturing to 2003 2 days (2009) 209 Billion 200+TB 200PB RFID tags sale in 2021: A boy’s 240’000 hours by a MIT Storage of a Smart City project from 12 million in 2011 Media Lab geek in China $800B $300B /year $32+B in personal location data within US healthcare saving from Big Acquisitions by 4 big players 10 years Data since 2010 “Data are becoming the new raw material of business: an economic input almost on a par with capital and labor.” —The Economist, 2010 “Information will be the ‘oil of the 21st century.’” —Gartner, 2010 4 4
  • 5. What is Big Data? Traditional Data Big Data Volume Gigabytes to Terabytes Petabytes and beyond Velocity Occasional Batch – Real-Time Data Analytics Complex Event Processing Variety Centralized, Structured Distributed, i.e. Database Unstructured Multi-format Vast Amounts of Information; Virtually Free 5 5
  • 6. Why is Big Data Important? Smart City Project: Up to 50% Decrease Improve Public Safety, in Product Boost Economic Development and Growth Assembly Costs1 Online Retailer Generate Revenue Generated 30% of from Data Analytics of Sales Due to Analytics B2B Sales? Driven Recomendations1 Data is the Raw Material of the Information Age 1::McKinsey Global Institute Analysis 6 6 *Other brands and names are the property of their respective owners.
  • 7. Big Data Solutions: Volume Traditional Storage Distributed Storage Architecture Application Servers Application Ten 9’s Durability & 50% Lower TCO Storage Client Metadata Storage Servers Servers SAN Storage Metadata (Storage Area Services Services Network) 1000s of Nodes & >200GB’s/sec Performance 7 7 *Other brands and names are the property of their respective owners.
  • 8. Big Data Solutions: Velocity In Memory Analytics Network Edge Analytics Stream Processing Analysis & Decision Support Applications Search and Analysis of 53 Million Customer Records: Analyze Data as its Collected to From 2-3 Hours to 2-3 Seconds!1 Make Near Real-time Decisions 8 8 1: Hilti Corporation case study *Other brands and names are the property of their respective owners.
  • 9. Big Data Solutions: Variety Unstructured Emerging Analytical Paradigms Multi-format Data Technologies Structured Data Relational Database EXALYTICS 9 9 *Other brands and names are the property of their respective owners.
  • 10. The Challenges of Big Data Massive scale and growth of unstructured data  80%~90% of total data Volume  Growing 10x~50x faster than structured (relational) data  10x~100x of traditional data warehousing Realtime rather than batch-style analysis Velocity  Data streamed in, tortured, and discarded  Making impact on the spot rather than after-the-fact Heterogeneity and variable nature of Big Data  Many different forms (text, document, image, video, ...) Variety  No schema or weak schema  Inconsistent syntax and semantics 10 10
  • 11. Big Data is Different from Traditional Data New Workloads/Methodologies to Design New Platforms Processing Data Management Analytics Real-time Analytics Distributed Analytics Scale-up Distributed Processing Speed Platform Hierarchy Descriptive Analytics Predictive/Prescriptive Analytics Relational Database NoSQL and NewSQL (SQL) Data Warehouse Flexible Scale-Out Schema Cluster Platform Batch-style Analytics 1x 10x 100x Volume Traditional Data Big Data 11 11
  • 12. The Major Source of Sensed Data Internet of Things (IoT) and Smart City Internet of Things (IoT) is a major source Most IoT apps are relevant for sensed data to Smart City, funded by governments Intelligence Environment Protection (Processing) Smart Agriculture Smart Logistics Interconnect Public Safety (Communication) E-Health Intelligence Intelligent Transportation (Control) Smart Home Smart Grid Instrumentation Industrial Automation (Sensing) 12 12 Source: GreatWall Strategy Consultants
  • 13. Intel’s Role in Big Data 13 13
  • 14. Intel’s Role in Big Data Accelerating big data analytics through faster and more effective CPU, Storage, I/O, Network platform. Driving innovation in big data applications by providing optimized software stack and services. Foster the growth of big data ecosystem through broad collaboration with partners. Investing in Solution Research and Services for Big Data Data of any type, under any provisioning method, is analyzed to find insights that drive business, social, and ecological value. 14 14
  • 15. Universal Insights Instant analysis at every level, from the sensor to the datacenter Visualization & Interpretation Streaming [Un]Structured Batch Horizontal & Vertical Scale E7 Analytics Analytics Data E5 Data Acquisition Microserver E3 Local Analytics Complex Event Processing Analytics Processing Preprocessing/ Storage Cleansing/Filtering/ Aggregation Horizontal Scale Data Acquisition Video Analytics Sensors Cameras 15 15
  • 16. Immediate Insights Intel builds performance customized and optimized extreme solutions to drive immediate insights and discoveries. From Telecoms, to Financial Services, to Smart cities, Manufacturing and Healthcare, Intel delivers robust security and trusted extreme performance computing, software, storage and network solutions customized and optimized for every industry; leading to insights and discoveries that better our world. 16 16
  • 17. Insights for everyone New analytics economics through scale and standards. Smart Building Smart Grid sensors sensors Industrial Automation Pollution sensors sensors Meteorological Smart sensors meters INTELLIGENT CITY INTELLIGENT FACTORY INTELLIGENT INTELLIGENT HOSPITAL HIGHWAY Sensors on Inductive Traffic cameras Portable medical Medical sensors Smartphone Sensors on sensors imaging services on ambulances Vehicles Intel’s open platforms, open software, open standards approach and industry leadership will drive down the cost and drive up the pace of innovation, putting affordable Big Data analytical capabilities within everyone’s reach. 17 17
  • 18. Summary 1  Big Data is here and growing rapidly 2  Intel is well positioned from a software stack and platform basis 3  Intel is committed to investing in new technology to address more demanding big data requirements of the future 18 18
  • 20. Legal Disclaimer INFORMATION IN THIS DOCUMENT IS PROVIDED IN CONNECTION WITH INTEL PRODUCTS. NO LICENSE, EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE, TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS DOCUMENT. EXCEPT AS PROVIDED IN INTEL'S TERMS AND CONDITIONS OF SALE FOR SUCH PRODUCTS, INTEL ASSUMES NO LIABILITY WHATSOEVER AND INTEL DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY, RELATING TO SALE AND/OR USE OF INTEL PRODUCTS INCLUDING LIABILITY OR WARRANTIES RELATING TO FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, OR INFRINGEMENT OF ANY PATENT, COPYRIGHT OR OTHER INTELLECTUAL PROPERTY RIGHT. • A "Mission Critical Application" is any application in which failure of the Intel Product could result, directly or indirectly, in personal injury or death. SHOULD YOU PURCHASE OR USE INTEL'S PRODUCTS FOR ANY SUCH MISSION CRITICAL APPLICATION, YOU SHALL INDEMNIFY AND HOLD INTEL AND ITS SUBSIDIARIES, SUBCONTRACTORS AND AFFILIATES, AND THE DIRECTORS, OFFICERS, AND EMPLOYEES OF EACH, HARMLESS AGAINST ALL CLAIMS COSTS, DAMAGES, AND EXPENSES AND REASONABLE ATTORNEYS' FEES ARISING OUT OF, DIRECTLY OR INDIRECTLY, ANY CLAIM OF PRODUCT LIABILITY, PERSONAL INJURY, OR DEATH ARISING IN ANY WAY OUT OF SUCH MISSION CRITICAL APPLICATION, WHETHER OR NOT INTEL OR ITS SUBCONTRACTOR WAS NEGLIGENT IN THE DESIGN, MANUFACTURE, OR WARNING OF THE INTEL PRODUCT OR ANY OF ITS PARTS. • Intel may make changes to specifications and product descriptions at any time, without notice. Designers must not rely on the absence or characteristics of any features or instructions marked "reserved" or "undefined". Intel reserves these for future definition and shall have no responsibility whatsoever for conflicts or incompatibilities arising from future changes to them. The information here is subject to change without notice. Do not finalize a design with this information. • The products described in this document may contain design defects or errors known as errata which may cause the product to deviate from published specifications. Current characterized errata are available on request. • Intel processor numbers are not a measure of performance. Processor numbers differentiate features within each processor family, not across different processor families. Go to: http://www.intel.com/products/processor_number. • Contact your local Intel sales office or your distributor to obtain the latest specifications and before placing your product order. • Copies of documents which have an order number and are referenced in this document, or other Intel literature, may be obtained by calling 1-800-548-4725, or go to: http://www.intel.com/design/literature.htm • Intel, Sponsors of Tomorrow and the Intel logo are trademarks of Intel Corporation in the United States and other countries. • *Other names and brands may be claimed as the property of others. • Copyright ©2012 Intel Corporation. 20 20
  • 21. Risk Factors The above statements and any others in this document that refer to plans and expectations for the first 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,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be the important factors that could cause actual results to differ materially from the company’s expectations. Demand could be different from Intel's expectations due to factors including changes in business and economic conditions, including supply constraints and other disruptions affecting customers; customer acceptance of Intel’s and competitors’ products; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers. Uncertainty in global economic and financial conditions poses a risk that consumers and businesses may defer purchases in response to negative financial events, which could negatively affect product demand and other related matters. Intel operates in intensely competitive industries that are characterized by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Revenue and the gross margin percentage are affected by the timing of Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, including product offerings and introductions, marketing programs and pricing pressures and Intel’s response to such actions; and Intel’s ability to respond quickly to technological developments and to incorporate new features into its products. Intel is in the process of transitioning to its next generation of products on 22nm process technology, and there could be execution and timing issues associated with these changes, including products defects and errata and lower than anticipated manufacturing yields. The gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; product mix and pricing; the timing and execution of the manufacturing ramp and associated costs; start-up costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; product manufacturing quality/yields; and impairments of long-lived assets, including manufacturing, assembly/test and intangible assets. The majority of Intel’s non-marketable equity investment portfolio balance is concentrated in companies in the flash memory market segment, and declines in this market segment or changes in management’s plans with respect to Intel’s investments in this market segment could result in significant impairment charges, impacting restructuring charges as well as gains/losses on equity investments and interest and other. Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Expenses, particularly certain marketing and compensation expenses, as well as restructuring and asset impairment charges, vary depending on the level of demand for Intel's products and the level of revenue and profits. Intel’s results could be affected by the timing of closing of acquisitions and divestitures. Intel's results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust and other issues, such as the litigation and regulatory matters described in Intel's SEC reports. An unfavorable ruling could include monetary damages or an injunction prohibiting us from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property. A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the report on Form 10-Q for the quarter ended Oct. 1, 2011. Rev. 1/19/12 21 21