1. Cloud Industry Trends & Customer Usage Models Billy Cox Director, Cloud SW Strategy 2012 August 10

2. Legal Disclaimers Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. Intel does not control or audit the design or implementation of third party benchmarks or Web sites referenced in this document. Intel encourages all of its customers to visit the referenced Web sites or others where similar performance benchmarks are reported and confirm whether the referenced benchmarks are accurate and reflect performance of systems available for purchase. Relative performance is calculated by assigning a baseline value of 1.0 to one benchmark result, and then dividing the actual benchmark result for the baseline platform into each of the specific benchmark results of each of the other platforms, and assigning them a relative performance number that correlates with the performance improvements reported. SPEC, SPECint, SPECfp, SPECrate. SPECpower, SPECjAppServer, SPECjbb, SPECjvm, SPECWeb, SPECompM, SPECompL, SPEC MPI, SPECjEnterprise* are trademarks of the Standard Performance Evaluation Corporation. See http://www.spec.org for more information. TPC-C, TPC-H, TPC-E are trademarks of the Transaction Processing Council. See http://www.tpc.org for more information.http://www.spec.orghttp://www.tpc.org Intel® Virtualization Technology requires a computer system with an enabled Intel® processor, BIOS, virtual machine monitor (VMM) and, for some uses, certain platform software enabled for it. Functionality, performance or other benefits will vary depending on hardware and software configurations and may require a BIOS update. Software applications may not be compatible with all operating systems. Please check with your application vendor. Hyper-Threading Technology requires a computer system with a processor supporting HT Technology and an HT Technology-enabled chipset, BIOS and operating system. Performance will vary depending on the specific hardware and software you use. For more information including details on which processors support HT Technology, see herehere Intel® Turbo Boost Technology requires a Platform with a processor with Intel Turbo Boost Technology capability. Intel Turbo Boost Technology performance varies depending on hardware, software and overall system configuration. Check with your platform manufacturer on whether your system delivers Intel Turbo Boost Technology. For more information, see http://www.intel.com/technology/turboboosthttp://www.intel.com/technology/turboboost No computer system can provide absolute security under all conditions. Intel® Trusted Execution Technology (Intel® TXT) requires a computer system with Intel® Virtualization Technology, an Intel TXT-enabled processor, chipset, BIOS, Authenticated Code Modules and an Intel TXT-compatible measured launched environment (MLE). Intel TXT also requires the system to contain a TPM v1.s. For more information, visit http://www.intel.com/technology/security. In addition, Intel TXT requires that the original equipment manufacturer provides TPM functionality, which requires a TPM-supported BIOS. TPM functionality must be initialized and may not be available in all countries. Intel ® AES-NI requires a computer system with an AES-NI enabled processor, as well as non-Intel software to execute the instructions in the correct sequence. AES-NI is available on Intel® Core™ i5-600 Desktop Processor Series, Intel® Core™ i7-600 Mobile Processor Series, and Intel® Core™ i5-500 Mobile Processor Series. For availability, consult your reseller or system manufacturer. For more information, see http://software.intel.com/en-us/articles/intel-advanced- encryption-standard-instructions-aes-ni/ Intel processor numbers are not a measure of performance. Processor numbers differentiate features within each processor series, not across different processor sequences. See http://www.intel.com/products/processor_number for details. Intel products are not intended for use in medical, life saving, life sustaining, critical control or safety systems, or in nuclear facility applications. All dates and products specified are for planning purposes only and are subject to change without noticehttp://www.intel.com/products/processor_number Copyrirht © 2012 Intel Corporation. All rights reserved. Intel, the Intel logo, Xeon and Intel Core are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. All dates and products specified are for planning purposes only and are subject to change without notice

3. IT Pros Growth & IT Challenges Drive Need for Cloud Computing 1 Cisco Global Cloud Index Nov 2011 2 IDC Extracting Value from Chaos June 2011 3 Intel ECG – One Smart Network device forecast 4 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2011–2016, Feb 2012 5 Datacenter Dynamics Global Datacenter Energy Demand 2012 forecast http://www.datacenterdynamics.com/research/energy-demand-2011-12; projected to 2015 by Intel; Assume $0.10/kWhhttp://www.datacenterdynamics.com/research/energy-demand-2011-12 15B connected devices by 2015 3 >3B connected users by 2015 1 Up to 2X or $27B 5 in additional data center power costs by 2015 >11X increase in mobile data traffic by 2015 4 2X growth in information every two years 2 GrowthIT Challenges Avoid Lock-In Seek interoperable solutions & services Improve Agility Reduce service delivery times, improve TCO Greater Efficiencies Reduce complexity & deploy new workloads Gain Better Insights Via intelligent analytics 3

4. Cloud Adoption Growing & Delivers Benefits 4 Resource provisioning Virtualized Platforms Asset Utilization Capacity Traditional IT – 2009Private cloud - 2011 90 days45 minutes 12%65% 10-20%>60% Silos Shared globally $9M in savings in 2 years Cost Savings 1 1 ODCA global member survey, Oct 2011, N=63 2 2 Gartner, Dec 2010, N=55 The Road Map From Virtualization to Cloud Computing (G00210845) 3 Source: Intel IT- http://premierit.intel.com/docs Intel IT example 3 Public Cloud Private Cloud Hybrid Cloud 35% by 2015 2 Today: 7% 2014: 23% Today: 14% 2014: 42% IT Survey Results >40% of IT operations 1 Public Cloud Private Cloud

5. Federated Automated Client Aware Private Cloud Public Cloud 5 Progress Towards Vision of “Cloud 2015” Today Silo’d Clouds Growing public and private cloud adoption Security, management complexity, app migration Resource Provisioning: Months => Minutes Manual processes Context aware growing: screen size, location, identity Lack client aware standards

6. 6 2015 & Beyond: Open Cloud Vision Open Clouds Interoperable, Built on Open, Multi-Vendor Solutions & Industry Standards Federated Automated Client Aware Private CloudPublic Cloud 2015  Integrated hybrid clouds  Easy to compare services  Automated security and resource allocation  Expanded context awareness Private Public Future  Services & resources adapt to environment  Predictive, real-time analytics  User experience adapts to patterns/behaviors

7. Cloud high level framework 7 Cloud Management (Orchestration) Fast Storage OSS Mass Storage Service Provider Network Storage BSS Big data Analytics Big data Analytics Cloud Applications Cloud Applications Compute Service Consumer

8. Servers: Efficient, Secure, Highly Scalable Challenges Improve OpEx: Seek more granular platform controls Workload optimized platforms Infrastructure security:1,200 new rootkits/day 2 Enhance QoS & VM isolation 1.Source: Intel – based on SPECpower results from 2006 – 2012. Refer to backup for more details. 2.McAfee Labs, Quarterly Threats Report 3.Source Intel - 2010  2020 Data center energy efficiency is determined by server energy efficiency (as measured by SPECPower_ssj2008 or equivalent publications and using a 2010 baseline of an E56xx series processor-based server platform) as well as technology adoption that raises overall data center work output (such as virtualization technology). Performance tests and ratings are measured using specific computer systems and/or components and reflect the approximate performance of Intel products as measured by those tests. Any difference in system hardware or software design or configuration may affect actual performance. Buyers should consult other sources of information to evaluate the performance of systems or components they are considering purchasing. For more information on performance tests and on the performance of Intel products, visit Intel Performance Benchmark Limitations.Intel Performance Benchmark Limitations 8 Platforms tailored to workloads Advanced security, virtualization, power & management controls Benefits Scale & improved automation OpEx & QoS improvements More secure infrastructure Homogeneous, Virtualized Built in security / virtualization >16X efficiency gains past 5 years 1 Environment Future

9. Open Compute Project EnablementContributions Structure

10. Open Compute Projects

11. Impact of High Ambient Temp Intel Analysis Intel Internal estimate based on deploying HTA optimized system 24/7/365 ambient temperature in 15 MW New Mexico data center with 5kW rack and 50% utilization. Assumed 10c/kw as cost of power. Data Center – 15 MW datacenter with 10 KW rack and a 50% average utilization. Standard Chilled water system, N+1 configuration System – Compared an HTA optimized platform with a non optimized system – CPU, layout & heat sink Reduction in cooling energy costs Power savings due to optimized system Energy savings converted to server power- from cooling infrastructure reduction Reduction in chillers, cooling towers and ACU by using free cooling

12. Optimized Networking for Cloud Infrastructure 12 Challenges Complex management Isolate multi-tenant networks Scale & meet SLAs Benefits Agility, scale, improved QoS Network automation Increase pace of innovation Company C Company B Company A Multi-tenant Dynamic Network management Company C Company B Company A Programmable Open ecosystem Standard high volume hardware Cloud OS Network management Controller cluster Environment Future configure

13. Networks

14. Scalable Cloud Storage Advancements Challenges Limited scalability & cost effectiveness Long deployment times 1 IDC Digital Universe Study 2011 14 Benefits Scale up to Exabytes Lower cost $/TB for capacity Flexibility Traditional Centralized Storage More efficient centralized storage Scale out, highly distributed storage Advanced storage capabilities Scale out Storage Servers Metadata Servers Application Servers 50X Increase in data managed by 2020 1 20% of all info “touched” by cloud by 2015 1 Environment Future Servers SAN (Storage Area Network) SAN (Storage Area Network) Centralized

15. Scale-out storage 15 Lustre Swift

16. Cloud Management (Orchestration) 16

17. Cloud Applications Client Device App types: Local app Browser Browser app Hybrid Global Transport CDN Cloud App Pages Images Content Pages Images Content Logs Analytics Global transport: Geo specific DNS IP level transport Geo specific content CDN “local” delivery Caches ‘most’ content May do local processing (encoding) Cloud App The datacenter part of the app C#, Java, Ruby, PHP, Javascript Scale-out and across providers Stateless instances Storage DB and NoSQL Replicated for performance and availability Scalable capacity and throughput are critical Analytics For diagnostics For business intelligence

18. Cloud Application Cloud App Logs Pages Images Users Financials Client Device LB webfe Geo DNS cache IPS LB cache SP cache IPS LB cache SP GEO Geo DNS cache IPS LB cache SP cache IPS LB cache SP GEO Financials DB Users DB Pages Images NoSQL Logs NoSQL Analytics Global Transport ~10TB ~1TB ~1PB ~100TB CDN Hadoop+ memcached

19. Scaling Memcached Performance with Intel® Xeon® Server Software Optimizations to memcached v1.6 Thread pinning Age-Bag LRU Lockless GET Released to Open Source Configuration Optimizations 10 Gb NIC Intel® 82599EN 16 TX and RX queues Intel® Hyper-Threading™ Technology Linux Kernel 2.6.30 or later (multiple NIC TX and RX queues) Software and workloads used in performance tests may have been optimized for performance only on Intel® microprocessors. Performance tests, such as SYSmark* and MobileMark*, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. For more information go to http://www.intel.com/performance. Configuration: see slide 39http://www.intel.com/performance

20. 20

21. Open Data Center Alliance Defining requirements & amplifying voice of IT Published IT Requirements for: Secure Federation Enhanced Identity Management Services Transparency & Automation Common Management & Policy Proposal Engine Assistant tool: Use ODCA usage models in RFPs >$100B in annual IT spend www.opendatacenteralliance.org 21 Source: ODCA member survey, Oct 2011

22. Accelerating Open, Interoperable Standards ODCA collaborating with multiple industry organizations: CSA, DMTF, Green Grid, OASIS, Open Compute Project, and TMForum Intel: Technical Advisor Influence and Take Advantage of Emerging Industry Standards 22 Drive standards for development of the web Intel: Active member Open source software for building clouds Intel: Active member Publishes specs for efficient datacenters, server, storage Intel: Founding member

23. Usage Models Secure Federation Secure Provider Assurance Security Monitoring Identity Management Interoperability Guide Cloud based Identity Governance and Auditing Infrastructure as a Service Privileged User Access Cloud based Identity Provisioning Single Sign on Authentication Automation IO Control VM Interoperability Long Distance Workload Migration Common Management and Policy Regulatory Framework Transparency Carbon Footprint Service Catalog Standard Units of Measure 23

24. VM Interoperability 24

25. Security Monitoring 25

26. From Intel IT Category Change/Add Block StorageNova Volume HA Block StorageBoot from Volume support Image ManagementHTTP based image management Image ManagementPreserve in use images and snapshots ManageabilityAn open, extensible deployment design that is not hardware vendor specific ManageabilityFor the operators, a richer set of command-line tools NetworkingSecurity group enhancements NetworkingIP address management integration with external DNS servers SecurityOpenID federation to Keystone ManageabilityMacro Install All Projects Package/script. SecurityOptimized code for everything over SSL/TLS SecuritySDL and 3rd Party Code Auditing for Core SecurityStandardize Logging output for all Openstack Services and applications. SecurityFederation of roles and identities between different Openstack Instances/Implementations SecurityImplement Multifactor authentication options for administrative identities in Openstack SecurityUser configurable RBAC Capacity ManagementUser quota support ManageabilityAmazon Cloud Watch; Amazon Simple Workflow Manageability Add federation or P2P capabilities for multiple OpenStack instances in the same environment to work together. Manageability Change Keystone API to include CUD operations for administrators to manage tenants and user memberships. ManageabilityAdd sub-system for auto-scaling. User Interface Greatly improved Web interface enabling end user usage of GUI to consume Open Stack based Cloud services Image ManagementTrusted Source Glance Peers with local Glance caching CoreAdded metrics/filter attributes for scheduler service http://communities.intel.com/community/openportit/blog/2012/07/18/chipping-in-to-the-open-source-cloud 26

27. Closing Cloud adoption is happening. Rapidly. Cloud technology is on fast evolution path: hw and sw. Infrastructure is evolving quickly in cloud environments. Open source continues to be a strong influencer. Customers have a voice for their requirements. If 5 years ago, you knew the tools you would have today: would you have implemented your IT differently? 27

28. 28

29. Legal Disclaimer Pages 33 - 36 - Pick the ones needed – remove others Overclocking Disclaimer WARNING: Altering clock frequency and/or voltage may: (i) reduce system stability and useful life of the system and processor; (ii) cause the processor and other system components to fail; (iii) cause reductions in system performance; (iv) cause additional heat or other damage; and (v) affect system data integrity. Intel has not tested, and does not warranty, the operation of the processor beyond its specifications. Intel assumes no responsibility that the processor, including if used with altered clock frequencies and/or voltages, will be fit for any particular purpose. For more information, visit http://www.intel.com/consumer/game/gaming-power.htmhttp://www.intel.com/consumer/game/gaming-power.htm Overclocked Memory Warning: Altering PC memory frequency and/or voltage may (i) reduce system stability and use life of the system, memory and processor; (ii) cause the processor and other system components to fail; (iii) cause reductions in system performance; (iv) cause additional heat or other damage; and (v) affect system data integrity. Intel assumes no responsibility that the memory, included if used with altered clock frequencies and/or voltages, will be fit for any particular purpose. Check with memory manufacturer for warranty and additional details. Overspeed Protection Removed Warning: Altering clock frequency and/or voltage may (i) reduce system stability and useful life of the system and processor; (ii) cause the processor and other system components to fail; (iii) cause reductions in system performance; (iv) cause additional heat or other damage; and (v) affect system data integrity. Intel has not tested, and does not warranty, the operation of the processor beyond its specifications. Intel® Trusted Platform Module (Intel® TPM): The original equipment manufacturer must provide TPM functionality, which requires a TPM-supported BIOS. TPM functionality must be initialized and may not be available in all countries. WiMAX Technology requires a WiMAX-enabled device and subscription to a WiMAX broadband service. May require purchase of additional software or hardware. WiMAX availability is limited; consult your service provider for details and network limitations. Actual performance will vary depending on your service provider and other variables. See www.intel.com/go/wimax for more information. www.intel.com/go/wimax Intel® WiDi Technology requires an Intel® Wireless Display enabled PC, compatible adapter, and TV. 1080p and Blu- Ray* or other protected content playback only available on 2nd generation Intel® Core™ processor-based PCs with built-in visuals enabled. Consult your PC manufacturer. For more information, see www.intel.com/go/widi www.intel.com/go/widi Intel® AES-NI requires a computer system with an AES-NI enabled processor, as well as non-Intel software to execute the instructions in the correct sequence. AES-NI is available on select Intel® processors. For availability, consult your reseller or system manufacturer. For more information, see Intel® Advanced Encryption Standard Instructions (AES-NI)Intel® Advanced Encryption Standard Instructions (AES-NI) Home Server: Requires an Internet connection and wireless router. Certain capabilities may not be compatible with all computer systems, consult your system or device manufacturer. For more information, visit Intel® Home & Small Business Storage Developer ResourcesIntel® Home & Small Business Storage Developer Resources Client Initiated Remote Access (CIRA): Client Initiated Remote Access may not be available in public hot spots or "click to accept" locations. For more information on CIRA, visit Fast Call for Help OverviewFast Call for Help Overview

30. Legal Disclaimer Built-In Security: No computer system can provide absolute security under all conditions. Built-in security features available on select Intel® Core™ processors may require additional software, hardware, services and/or an Internet connection. Results may vary depending upon configuration. Consult your PC manufacturer for more details. Enhanced Intel SpeedStep® Technology - See the Processor Spec Finder at http://ark.intel.com or contact your Intel representative for more information.http://ark.intel.com Intel® Hyper-Threading Technology (Intel® HT Technology) is available on select Intel® Core™ processors. Requires an Intel® HT Technology-enabled system. Consult your PC manufacturer. Performance will vary depending on the specific hardware and software used. For more information including details on which processors support Intel HT Technology, visit http://www.intel.com/info/hyperthreading. http://www.intel.com/info/hyperthreading Intel® Pair & Share App requires a genuine Intel® processor-based computer with Windows* 7 OS, Intel® Pair & Share device application installed on each supported device and the sharing session host PC. Host PC and devices must be connected to the same wireless network. Intel® Wireless Display technology required for sharing on TV. Intel® vPro™ Technology is sophisticated and requires setup and activation. Availability of features and results will depend upon the setup and configuration of your hardware, software and IT environment. To learn more visit: http://www.intel.com/technology/vpro.http://www.intel.com/technology/vpro Intel® Small Business Advantage requires an Intel® Small Business Advantage enabled system and proper configuration. Availability of features will depend upon the setup and configuration by your PC manufacturer. Consult your system manufacturer. Requires activation and a system with a corporate network connection, an Intel® AMT-enabled chipset, network hardware and software. For notebooks, Intel AMT may be unavailable or limited over a host OS- based VPN, when connecting wirelessly, on battery power, sleeping, hibernating or powered off. Results dependent upon hardware, setup and configuration. For more information, visit Intel® Active Management Technology.Intel® Active Management Technology Intel® Anti-Theft Technology (Intel® AT): No system can provide absolute security under all conditions. Requires an enabled chipset, BIOS, firmware and software, and a subscription with a capable Service Provider. Consult your system manufacturer and Service Provider for availability and functionality. Intel assumes no liability for lost or stolen data and/or systems or any other damages resulting thereof. For more information, visit http://www.intel.com/go/anti-theft.http://www.intel.com/go/anti-theft Intel® HD Graphics P3000 are only available on select models of the Intel® Xeon® processor E3 family. To learn more about Intel Xeon processors for workstation visit www.intel.com/go/workstation.www.intel.com/go/workstation Intel® High Definition Audio (Intel® HD Audio) requires an Intel® HD Audio enabled system. Consult your PC manufacturer for more information. Sound quality will depend on equipment and actual implementation. For more information about Intel HD Audio, refer to Intel® High Definition AudioIntel® High Definition Audio

31. Legal Disclaimer Intel® 64 architecture requires a system with a 64-bit enabled processor, chipset, BIOS and software. Performance will vary depending on the specific hardware and software you use. Consult your PC manufacturer for more information. For more information, visit http://www.intel.com/info/em64thttp://www.intel.com/info/em64t Intel® Trusted Execution Technology (Intel® TXT): No computer system can provide absolute security under all conditions. Intel® TXT requires a computer with Intel® Virtualization Technology, an Intel TXT enabled processor, chipset, BIOS, Authenticated Code Modules and an Intel TXT compatible measured launched environment (MLE). Intel TXT also requires the system to contain a TPM v1.s. For more information, visit http://www.intel.com/technology/securityhttp://www.intel.com/technology/security Intel® Virtualization Technology (Intel® VT) requires a computer system with an enabled Intel® processor, BIOS, and virtual machine monitor (VMM). Functionality, performance or other benefits will vary depending on hardware and software configurations. Software applications may not be compatible with all operating systems. Consult your PC manufacturer. For more information, visit http://www.intel.com/go/virtualization http://www.intel.com/go/virtualization Intel® Turbo Boost Technology requires a system with Intel Turbo Boost Technology. Intel Turbo Boost Technology and Intel Turbo Boost Technology 2.0 are only available on select Intel® processors. Consult your PC manufacturer. Performance varies depending on hardware, software, and system configuration. For more information, visit http://www.intel.com/go/turbohttp://www.intel.com/go/turbo InTru™ 3D: Viewing stereo 3D content requires 3D glasses and a 3D-capable display. Physical risk factors may be present when viewing 3D material. Intel® MyWiFi Technology is an optional feature and requires additional software and an Intel® Centrino® wireless adapter. Wi-Fi devices must be certified by the Wi-Fi Alliance for 802.11b/g/a in order to connect. See www.intel.com/network/connectivity/products/wireless/mywifi.htm for more details. www.intel.com/network/connectivity/products/wireless/mywifi.htm Intel® Insider™ is a hardware-based content protection mechanism. Requires a 2nd Generation Intel® Core™ Processor based PC with built-in visuals enabled, an internet connection, and content purchase or rental from qualified providers. Consult your PC manufacturer. For more information, visit www.intel.com/go/intelinsider.www.intel.com/go/intelinsider Thunderbolt™: As compared to other PC I/O connection technologies including eSATA, USB and IEEE 1394 Firewire*. Performance will vary depending on the specific hardware and software used. For more information go to Thunderbolt™ Technology. Thunderbolt™ Technology Intel® Identity Protection Technology (Intel® IPT): No system can provide absolute security under all conditions. Requires an Intel® Identity Protection Technology-enabled system, including a 2nd Generation Intel® Core™ processor enabled chipset, firmware and software, and participating website. Consult your system manufacturer. Intel assumes no liability for lost or stolen data and/or systems or any resulting damages. For more information, visit http://ipt.intel.com.http://ipt.intel.com Ultrabook™ Touch/Convertibility: Touch and convertibility may not be available on all models. Consult your Ultrabook TM manufacturer. For more information and details, visit http://www.intel.com/ultrabookhttp://www.intel.com/ultrabook Built-in Visuals: Built-in visual features are not enabled on all PCs and optimized software may be required. Check with y our system manufacturer. Learn more at http://www.intel.com/go/biv.http://www.intel.com/go/biv

32. Legal Disclaimer KVM Remote Control (Keyboard, Video, Mouse) is only available with Inte® Core™ i5 vPro and Core™ i7 vPro processors with Intel® Active Management technology activated and configured and with integrated graphics active. Discrete graphics are not supported. ENERGY STAR* is a system-level energy specification, defined by the Environmental Protection Agency, that relies on all system components, such as processor, chipset, power supply, etc.) For more information, visit http://www.intel.com/technology/epa/index.htm http://www.intel.com/technology/epa/index.htm Software Source Code Disclaimer: Any software source code reprinted in this document is furnished under a software license and may only be used or copied in accordance with the terms of that license. {include a copy of the software license, or a hyperlink to its permanent location} Other Software Code Disclaimer Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions: The above copyright notice and this permission notice (including the next paragraph) shall be included in all copies or substantial portions of the Software. THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

33. Risk Factors The above statements and any others in this document that refer to plans and expectations for the second 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; segment product mix; 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, disclosure 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 Intel 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 company’s most recent Form 10-Q, Form 10-K and earnings release. Rev. 5/4/12