Intel sees the next wave: artificial intelligence

"Connected" published an article stating that, in the face of constant market changes, HP, Dell, EMC, and Intel have continued to restructure but haven't managed to successfully transform. They've attempted to shift toward software and cloud-based businesses, only to return to hardware in recent years. The article suggests they failed to anticipate industry trends, with the exception of Intel, which has recognized the next big wave—artificial intelligence.

The article highlights how these once-dominant computer hardware giants are no longer what they used to be. Even just a few years ago, their influence was undeniable, but today, they're struggling to keep up with a rapidly evolving tech landscape.

These companies understand that the tech industry is changing. With the rise of smartphones and tablets, the importance of traditional PCs has declined. At the same time, cloud computing from companies like Google, Amazon, and Microsoft has allowed businesses to build applications without buying expensive hardware. When hardware is needed, many companies now turn to non-traditional providers influenced by big tech firms like Facebook and cloud service providers. Despite recognizing these shifts, HP, Dell, EMC, and Intel have struggled to find the right path forward.

As the industry keeps evolving, so do these companies. They constantly reorganize, pivot, and try to stay relevant. Sometimes they acquire new businesses, sometimes they abandon those efforts and focus on different areas. Change is the only constant in the hardware sector.

For a while, the strategy was to become software companies. In 2010, Intel spent $7.68 billion on McAfee, a security software firm. A year later, HP bought Autonomy for $11 billion, hoping to capitalize on the "Big Data" trend. Dell also invested heavily in software acquisitions. However, these moves didn’t pan out. Dell recently sold its software business, HP parted ways with Autonomy, and Intel spun off McAfee. It seems that turning into a software company isn’t as easy as it sounds.

Some tried to move into the cloud, but that path also proved difficult. HP split into two separate companies, one focusing on enterprise hardware and the other on printers and PCs. Dell merged with EMC, and Intel started acquiring chipmakers. After trying to go software, they’re back to hardware, still searching for the next big thing. Only Intel appears to be on the right track, especially with its focus on AI.

While some companies have managed to adapt, others have struggled. IBM, for example, transformed itself over 15 years ago by shifting from hardware to IT consulting and services. Its strategy paid off as PC markets became saturated, and corporate IT became more profitable. Other companies tried similar approaches, but not all succeeded.

HP made bold moves, including the controversial acquisition of Autonomy, but ultimately failed to execute its transformation. Meanwhile, Intel has taken a smarter approach, investing in AI through strategic acquisitions like Movidius and Nervana. These moves align with its core strengths and position it well for the future.

The lesson from recent years is that transforming from hardware to software—or vice versa—is not easy. Both sides have made mistakes. Google bought Motorola, only to sell it to Lenovo, and Microsoft is reducing its mobile investments. For HP, Dell, and EMC, the challenge remains in identifying the right direction.

Intel, however, is looking ahead. It's betting big on artificial intelligence, a field that’s set to shape the next era of technology. While others are still figuring out their next move, Intel is already positioning itself for the future.

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