1. IT@Intel Brief
Intel Information Technology
Client PCs as Strategic Assets
Computer Manufacturing By actively managing Intel’s client PC fleet as a
Client Management Profile: Client PC Strategies
strategic asset, Intel IT has consistently decreased
May 2007 total cost of ownership (TCO) for client PCs, achieving • 67% TCO reduction over 11 years
a 67 percent reduction from 1995 to 2006. • Laptops provide greater than 5%
Because PC acquisition costs account for only time savings per employee per week
20 to 30 percent of TCO, we don’t fixate on
• Higher-specification PCs
these costs alone. Instead, we align our PC fleet
improve security, increase fleet
investments and management practices with
manageability, and reduce TCO
Intel’s strategic goals. We focus on factors that not
only reduce TCO, as shown in Figure 1, but also
deliver business value to Intel, adding capabilities
that keep Intel agile and competitive.
$10,000
8,000
Downward TCO trend continued
during mobile transition
Reduced hardware pricing and
6,000 client support, economies of scale
4,000
2,000
0
1995 1998 2003 2006
Figure 1. Total cost of ownership (TCO) of Intel client PCs shrunk by 67 percent from
1995 to 2006. Intel reduced client PC TCO over time while adding strategic capabilities, including a
major shift to mobile computers that started in 2000. TCO savings come from reductions in costs for
hardware, software, and end-user support time.
IT@Intel

2. Technology Decisions Simplifying Enterprise
Impact TCO PC Management
In the mid-1990s, Intel’s PC client policy We achieve many benefits by simplifying our
was based on two assumptions: a four-year PC fleet:
depreciation cycle and that lower-cost “value”
• Reduced complexity of the installed PC
PCs for general use was the most economical
base decreases overall costs and improves
purchasing strategy. However, when we
network security.
examined the return on investment (ROI) of
more powerful “mainstream” client systems, • Fewer hardware configurations lower
we learned that this was not the case. IT support costs by reducing training,
documentation, and unique process
We discovered that we were consistently
requirements, and minimize break and fix
moving older PCs to users with less powerful
costs by requiring fewer system and
system requirements much earlier than expected
component inventories.
because these value PCs could not support the
latest OS update, and they rarely lasted the • IT staff can deliver solutions faster and
expected life span. cheaper because it takes less time to
qualify and test software and updates.
Legacy OSs and older versions of Web browsers
increased security risks and reduced productivity, • Bug fixes can be deployed 10 to 30
requiring us to make additional PC purchases. This percent faster, significantly improving
effectively forced us into a more frequent refresh network security.1
cycle than we had planned and increased our
Simplifying the PC environment involves not
overall costs. We actually shortened the useful life
only reducing the number of configurations
of our assets by not buying high enough.
deployed but also proactively decommissioning
older systems that no longer deliver adequate
Moving to a performance or provide optimal security
Strategic Approach protections. Studies demonstrate that keeping
This shift in perspective led us to view our client PCs longer than three years significantly
PCs as strategic assets. They now have to meet increases support costs and security exposure,
line-of-business requirements and also address a suggesting that a three-year refresh cycle is
broader range of factors that are not accounted optimal, as shown in Figure 2.2
for in TCO but nonetheless significantly affect
Intel’s bottom line and competitiveness. Managing the PC
We focus on three objectives for our client Life Cycle Proactively
PC fleet selection and management: To simplify Intel’s PC environment, we have
reduced the variety of platforms we support.
• Enhanced security
Purchasing higher performing PCs allows us
• Improved productivity for both users to offer a smaller number of standard desktop
and IT staff PC and laptop configurations that apply across
• Lower costs usage segments and consequently reduce TCO.
For example, our standard laptop configuration
Optimizing performance and reducing costs for knowledge workers—which includes Intel®
require simplification through standardizing dual-core technology, increased memory, and
platforms and processes, and that we take higher-resolution displays—also scales to
advantage of new technologies to achieve engineering users. This eliminates one of the
improved productivity, efficiency, and security. platform configurations we must support.
1 “Measuring the Benefits of Mobile Computing in the
Enterprise,” Wipro Consulting Ltd. 2005.
2 “The Financial Aspects of PC Fleet Management,” Intel
Corporation, June 2003.

3. In planning our refresh cycles, we look for features that meet our +
strategic line-of-business and fleet management requirements, including: Optimal Lifetime End of Standard Warranty
• Extended Warranty Costs
• Stability
• Hardware Failures
• Long product ordering cycles and long asset life • Driver Issues
• Increased Virus/
• Global availability
Incidents
Security Breaches
We control our costs by developing a single, gold software image • Application Conflict Errors
client build for our selected stable platforms. This consequently
improves security because we can update the fleet quickly, without
compatibility problems.
We also invest in technologies that simplify our PC fleet management
processes and reduce our support costs, such as Intel® vPro™ processor
technology. Intel vPro processor technology provides remote PC asset
and problem resolution capabilities, even when systems are powered Year 1 Year 2 Year 3 Year 4
off, and hardware-enhanced security capabilities.
Figure 2. Support costs increase substantially after the
Finally, we streamline our software acquisitions and deployments, first three years in a PC’s lifetime.
aligning them with hardware release dates to create predictable, cyclical
transitions from one generation of software and PC technology to
the next. We take advantage of programs such as Intel® Stable Image
Platform Program (Intel® SIPP), which coordinates hardware manufacturing
schedules to create stable configurations for 15 months.
Improving Productivity through
Technology
We improve productivity by providing machines optimized for the way
employees work and for the computing demands placed on them,
delivering business value in addition to lowering TCO. Intel shifted
predominantly to mobile computing based on analysis of productivity
and business value gains. Figure 3 shows this transition.
Desktop PC to Laptop Comparison
20% 20%
Laptops Desktops
40%
Desktops
60%
80% Laptops 80%
Desktops Laptops
1995 2000 20061
1
2006 Regional Breakdown of Laptops: Europe 12.73%; Asia 20.41%; Americas 66.86%
Figure 3. Intel shifted from desktop PCs to laptops to enhance productivity through mobility. Wireless and mobile technologies
offer a greater than five percent time savings in an employee’s work week.

4. Through user surveys and observational studies, we demonstrated that
wireless and mobile technologies offer a greater than five percent time
savings in an employee’s work week. This time savings more than covers Acronyms
the increased hardware costs of laptops over desktop PCs. By replacing Intel® SIPP Intel® Stable Image Platform Program
6,400 desktops with laptops, we achieved productivity gains valued
ROI return on investment
at USD 26 million (three-year net present value). Over five years, we
transitioned to an 80:20 ratio of laptops to desktop systems, improving TCO total cost of ownership
productivity and continuing to drive down TCO.
Conclusion
By managing our client PCs as strategic assets, streamlining our
processes, and buying higher-specification PCs that improve
productivity and security, we not only reduce TCO but also deliver
measurable business value year after year.
In 2007, we are investing in our biggest PC refresh effort in 10 years.
We will be introducing an integrated client platform that includes
the latest Intel® mobile platform combined with a new operating
system, virtual machine, office suite, and Web browser. This significant
investment aligns with Intel’s strategic goals and gives Intel employees
a new level of PC capability.
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