1 Cost Efficiency Savings from an IT perspective Ravi Nannapaneni Principal Engineer Principal Engineer Intel Corporation Intel Corporation

2 243,000 LAN nodes 5,335 wireless access points 166 terabytes of WAN traffic per month 70,395 instant messaging users 137 million messages per month 95,000 mail boxes IT Intel 430,000 Data Center square feet

Efficiency Initiatives Data Center Efficiency Data Center Consolidations Server Consolidations & Refresh Service Desk Consolidation Business Solutions & Enterprise Resource Planning (ERP) Re- platform Retiring Applications Supplier Consolidation & Internal IT Savings

4 Data Center Consolidations Long term program goal*  USD 500 to 750 million in NPV Aligned Intel worldwide network to support the strategy Completed application characterization for all core IT services Reduced 21 Data Centers in 2008  18% efficiency gain 2008 Savings: USD 45M from Data Center Capital Expenditure * By standardizing compute environment, increasing utilization, and reducing data center footprint.

M bops 6 racks 126 servers 240 sq ft 48 kW Data Center Refresh Utilizing Consolidation and Virtualization Business Requirement: Deliver 5.1 Million Business Operations Per Second Using 45nm Quad-Core Intel ® Xeon ® Processor 5400 Estimated Energy Savings $53K Savings 3 Annual Energy Costs 87% Reduction 2 Floor Space 83% Reduction 1 The Bottom Line Benefits for IT (< 2 year ROI 4 ) M bops 1 rack 17 servers 40 sq ft 6 kW Whitepaper at Savings: USD 45M from Server Refresh, USD 1.7M from Server Virtualization

Service Desk Consolidation 1 - Source: MetricNet “Industry Megatrends: A Benchmarking Perspective” 2 – Based on data from Intel Controller 3 – Plan ‘09 ISD estimate, includes functions in addition to L1 support On average, high tech company service desks save the end user 1 hour and 40 min of time for each contact initiated 1. The average Intel BB costs 32k per quarter 2 (burden rate), which translates into a cost of approximate ly $1 per minute of FTE time. Therefore, each contact with the ISD saves Intel $100. With approx 1.4M contacts a year, that means ISD saves Intel $140M in employee productivit y each year! Factor out ISD costs 3, and Intel is left with a net savings of $100M in productivit y savings annually due to the ISD business!! Did you hear the news? Intel SD saves Intel $100M annually on Incident Mgmt alone! 16% reduction in Cost Per Incident

7 Business Solutions & ERP Re-Platform Landed 23 targeted ERP programs to support Intel’s growth Engineering Computing Data Center Virtualization (DCV) resulted in cost avoidance of USD 33 million Achieved 80% utilization (10% more in 2008) which reduced the need to purchase more resources

8 Retiring Applications Focus on applications that are outdated or no longer needed Plan to reduce IT-owned applications by 50% from about 1600 to 800 over four years Reduced 37% of applications since start of program in 2007 Program Savings: NPV of more than USD 50M

9 Supplier Consolidation & Internal IT Savings Manage supplier cost by optimizing services Reviewing key supplier spends Considering dual-source options Eliminating unnecessary services Achieved USD 48 million in validated cost savings from our IT business groups

10 Plans for 2009 Given the economic environment, it will be even more critical for IT to deliver solutions and services to help drive company-wide efficiency and productivity Intel plans on continued investment in programs that deliver efficiency and productivity gains Impact Intel’s Product Development and Influence the Industry to Adopt Intel Technology Solutions Deliver Enterprise Solutions that Drive Intel’s Growth Deliver Competitive IT Operational Services that Power Intel’s Business Operations People Build an Engaged and Energized IT Team Influence

11 Intel IT Cost Related Initiatives for 2009 Continue Operating Cost Reduction through Data Center and Server consolidation Client Manageability with Intel vPRO technology Reducing cost of storage solutions Continued PC refresh ERP Re-platform (bring it home) Workflow and Project delivery Further Enable Collaboration and Enterprise Social Media Capabilities Continue Delivering Enterprise Solutions to Enable the Business Manage Spending

12 Remote client management— all regardless of system health or if the PC is powered on or not Remotely deploy security patches Collect PC HW/SW inventories Diagnose and fix problems New for 2008: Client Initiated Remote Access Allows PCs inside or outside the firewall to request help Remotely unlock Intel® Anti-Theft Technology encrypted HDDs (Q1’09) Most Secure Help protect from virus and worm outbreaks and keep critical agents running New for 2008: Intel® Anti-Theft Technology protects HDD data from compromise even if PC is stolen or drive is repurposed (Q1’09) Control Costs by Improving Manageability vPro Technology Enables: TM Expected Savings: USD 0.45M in 2009 and USD 0.9 in 2010 on 3 use cases* * Remote diagnosis and remote repair, remote diagnosis and local repair, and remote configuration

13 Questions or comments? Please contact: Ravi Nannapaneni