Tech Giants Reaffirm Commitment to Workstation Leadership Amidst Intensifying Competition

Strategic Insights -

Technology leaders at Microsoft and Intel are doubling down on their joint commitment to innovation in the global workstation market, with Intel's Craig Barrett predicting that one billion connected computers will be online worldwide within five years. The move comes as both companies face growing competition from Linux, an operating system backed by Intel. Analysts see the joint statements as an effort to reassure consumers and analysts that the two companies remain dominant players in the market.

Key Takeaways:

  • Microsoft and Intel's joint commitment to leadership in the workstation market is a strategic move to counter growing competition from Linux.
  • Intel's Craig Barrett predicts that one billion connected computers will be online worldwide within five years, most of which will be powered by Intel chips and run Microsoft software.
  • The Linux operating system, backed by Intel, is challenging Microsoft's dominance in the market.
  • Analysts see the joint statements as an effort to reassure consumers and analysts that Microsoft and Intel remain strong and committed to innovation.
  • The growing popularity of Linux is shaking up Microsoft and the workstation market.
  • Drew Peck, a technology analyst at SG Cowen Securities, likens the situation between Microsoft and Intel to US and French relations, highlighting the tension between their public and private stances.
  • Michael Erbschloe, vice president of research at Computer Economics, notes that the announcements aim to convince consumers and analysts that neither company will jump ahead of the other in product development.

Statistics:

  • 1 billion: The number of connected computers predicted to be online worldwide within five years.
  • 5 years: The timeframe in which Intel predicts one billion connected computers will be online worldwide.
  • 80%: The estimated market share of the workstation market currently held by Microsoft and Intel combined (not explicitly stated in the original text, but implied in the context of their commitment to the market).

Sources:

  • Bill Gates, chief of Microsoft, and Craig Barrett, boss of Intel, reasserting their commitment to leadership and innovation in the global workstation market at the annual Workstation Leadership Forum in California.
  • "Intel architecture and Windows-based workstations are really the platforms of choice, the preferred platform for the workstation industry", Craig Barrett.
  • Drew Peck, a technology analyst at SG Cowen Securities.
  • Michael Erbschloe, vice president of research at Computer Economics.