Intel considering new paid software services

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Intel CEO says the chipmaker is looking at new ways to bring in revenue through software.

Intel CEO Pat Gelsinger has said his company is exploring new paid software services. He claims this move is part of his new “software-first” approach and would create new revenue streams for the company. Gelsinger made this revelation in an exclusive interview with CRN..

“I do expect that you’ll see more in that area: How do we leverage our software assets? How do we have unique monetized software assets and services that we’ll be delivering to the industry, that can stand in and of their own right?”

“And yeah, that’s a piece of the business model that I do expect to do more of in the future,” he said.

The new offerings described would add to the paid software offerings Intel already has. These include Intel Unite for collaboration and Intel Data Center Manager. The company’s paid software offerings also include Intel Smart Edge and SigOpt.

Greg Lavender, Intel’s new CTO,says one potential avenue for paid software services is the telemetry capabilities of the company’s processors. “We have to work with our partners to bring [those capabilities] forward in new ways that could create new business models, and there [are] possibilities of revenue sharing there,” said Lavender.

All part of the company’s evolution?

Gelsinger said the plan to generate more revenue through software is a “somewhat natural progression” for Intel. He added that it mirrors the software industry’s move to Software-as-a-Service-oriented delivery models. When Gelsinger was CEO of VMware, he played a foundational role in Nvidia’s GPU virtualization offerings. But as CEO of Intel, Gelsinger said Intel needs to be more open than Nvidia when it comes to software.

“We’re going to find more ways to deliver, and some of those will just be SaaS services that we deliver. [Some of them will be] enabling services. Some of them will be paid-for services, and in other cases, hey, we’re just going to have more software products,” he said.