Intel outlines future of embedded devices

Timed with next month's Consumer Electronic Show and expectations of economic improvement in 2010, Intel (NASDAQ:INTC) has unveiled its latest version of Atom, as well as a line-up of new processors. The new CPUs are aimed at either netbooks or entry-level desktops, according to Intel, but the company's interests span a much larger array of emerging devices. Jonathan Luse, Intel's director of marketing for its low-power embedded products division and head of that division's Atom line of products, spoke with Connected Planet about Intel's embedded business and how IP is changing devices.

Defining the embedded-device market: Most [devices] have an IP-based protocol that they work with from a connectivity perspective. A lot of these devices are dedicated function, which is different than servers or desktops that are designed to be much more general purpose where the software itself creates the personality of the device. A lot of these embedded devices are static, state-machine types, so they have very dedicated applications and, a lot of times, very specific requirements, whether it's IO or software stacks to make them function the way they do. Some have user interfaces; some are headless….There are multiple operating systems in the environment today – that is a phenomenon I don't see consolidating. Compared to the other computing environments, it is not just about Windows and Linux. In the spaces we're involved in, there's Windows, every variation of Linux out there, real-time operating systems and proprietary operating systems. They all have to be integrated and optimized.

On new pressure points facing suppliers:  Security, energy efficiency and remote manageability are relatively new pressure points being put on suppliers. Security and remote manageability are technology approaches that would allow them to do more with their devices and, once they are connected, get them intelligent, reduce the cost of maintenance and create a trusted environment that makes them more secure. Energy efficiency is a prime motivator from these companies that create these environments. We always inspire to create the power variable into the equation of how we optimize as well. What used to be just about performance turns in to performance per Watts or Watts per performance, depending on your point of view.

On how Intel is serving the embedded-device market: When people put a design in place, they want to be able to maintain and support it for a much longer period of time then something in the PC space where you go through these annual or three-times annual refreshes to get the latest and greatest technologies. The embedded guys want that too, but when they refresh their technology, they want it there for seven years or longer. That's predominantly one of the things we do inside of Intel. When we adopt the infrastructure and products in the space, we make sure it's available for that long life cycle.

On Atom's role in embedded devices: As you scale further into these purpose-built solutions, what we call deeply embedded, you need some various market or application-specific processor parts. That is where Atom and the system-on-a-chips we have going forward really are designed to service that. The intent we have, as far as embedded, is to take advantage of the products we have in the roadmaps from a Xeon, Core 2 Duo and Centrino perspective, but really to build on that with the market-specific parts. Our business has been growing steadily – one of the fastest growing in Intel.

On the next stage of the IP explosion: Now you have billions of devices connected. It starts getting ubiquitous and these embedded devices – the retail point-of-sale devices or the smart grid – really become the phenomena of where the embedded Internet is going. The prediction is there are probably 15 billion devices by 2015 that will be connected. Anyone dealing with IP protocols realizes we'll run out of IP addresses pretty soon if you believe there will be that many devices. That will create some infrastructure challenges. It is happening.

On creating aware, intelligent devices: Devices can be connected, intelligent and unaware of their surroundings. An example of that might come from a Kindle, a pretty good connected and intelligent e-Reader, but it's not aware of what's around it. It's not utilizing its peer computing devices around it. Over time, those devices may be aware of their surroundings and figure out how to use those connections.

On operator's business concerns: From a business side of things, they are really looking to see where they can add value inside the home – not just be the conduit to create the pipe and broadband access to the home, but also figure out ways to service the customers better with a richer set of services. That is their business motive, obviously. Their traditional ARPU has historically been under pressure and they are continuously looking for new revenue streams and how they'd provide that. For residential gateways and media phones, providing the content as well as the connection is an opportunity for service providers.

On operator's infrastructure concerns: The other major pressure point is not just increasing APRU but also reducing their capital expenditures and their investment to get there. Their network infrastructure is extremely expensive to put in. They have to maximize that capital investment. Getting to the point where they can incorporate technologies easier than they are today is one of their development motivations they have as companies. That is an interesting phenomenon to see, because there are uptime expectations that the carriers provide. It's also tempered with a business need to be able to install and jack in new services and infrastructure into their existing network that may not be their own design. That is the design challenge they have going forward. How do they keep their uptime and keep their infrastructure very robust, but yet be able to scale out other peoples' services and infrastructure into their system and pass those services along to their customer base?