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The Explosion of
Petascale in the
Race to Exascale

Rajeeb Hazra
VP, Intel Architecture Group,
GM, Technical Computing
Intel Corporation

@IntelITS
Legal Disclaimers
Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance is 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.
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's compilers may or may not optimize to the same degree for non-Intel microprocessors for optimizations that are not unique to Intel microprocessors. These optimizations include
SSE2, SSE3, and SSE3 instruction sets and other optimizations. Intel does not guarantee the availability, functionality, or effectiveness of any optimization on microprocessors not
manufactured by Intel.

Microprocessor-dependent optimizations in this product are intended for use with Intel microprocessors. Certain optimizations not specific to Intel microarchitecture are reserved for Intel
microprocessors. Please refer to the applicable product User and Reference Guides for more information regarding the specific instruction sets covered by this notice.
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.
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/turboboost
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 products, computer systems, dates and figures specified are preliminary based on current expectations, and are subject to change without notice
Copyright © 2011 Intel Corporation. All rights reserved. Intel, the Intel logo, Xeon MIC, TrueScale Infiniband, TXT 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. Other Names and
brands may be claimed as the property of others.
HPC: Driving Data Center Growth
                              2X Volume Growth*
                                                        Cloud
                                                                *
                                                       Growth

                                                       >25%
                                                        HPC
                                                       Growth*

                                                       >20%
                                                       Network
                                                       Growth*

                                                       >30%

                         Doubling Volume and Revenue
Source: Intel
* Forecast , CAGR
Race for HPC Competency

• Industrial challenges                Performance of Countries
  – Renewable energy
  – Genomics/ Biosciences
  – Design and Simulation
  – Media and Entertainment
• National security challenges
  – Threat monitoring and cyber
    security                                    Source: Top500.org


  – Nuclear safety

                     To Compete, You Must Compute
The Road to Petascale Everywhere
                           1997                                  2012                              2018
                    Teraflop Ecosystem                    Petaflop Ecosystem                 Exaflop Ecosystem

                    ASCI RED                                 SEQUOIA
     Top Machine                     1 TF                                        16 PF                   1 EF



Typical Workgroup
                          .5 GF                                          5TF                     0.5-1.0 PF
        20kw Rack
                               X                                           X                        X
  # of Workgroup
                         140,000                                     160,000                     170,000
        Machines

                     70 TFLOPs                             800 PFLOPs                       170 ExaFLOPs
                               *- Compute Capacity - All PC, Embedded and Server Combined
Helping to Drive the Petascale Explosion
25
                                                                         1 →10 Petaflop Systems:
20
                                                                                 4 Years
15

10

5
                                                                         10 → 20 Petaflop Systems:
                                                                                <1 Year
-
       2007 2008 2009 2010 2011 2012
     Intel Petaflop Systems   Overall Petaflop Systems


                                                    Source: Top500.org
Top500: Rapid Expansion in Total FLOPs
                          Top500 FLOPs Growth                                                              Largest all Intel® Xeon® Processor
  140,000,000                                                                                                         Cluster Ever
  120,000,000

  100,000,000
    80,000,000
    60,000,000
    40,000,000

    20,000,000
                     -                                                                                                2.9 PetaFLOPs
                                       2005
                         2003
                                2004


                                              2006
                                                     2007
                                                            2008
                                                                   2009
                                                                          2010
                                                                                 2011
                                                                                        2012

Source: Top500.org                                    Other brands and names are the property of their respective owners.
What’s Intel Doing in 2012 in HPC…

       Intel® Xeon® Processor:
       E5-2600/4600 Product Families


       Fabric Technology:
       Cray’s Aries Interconnect
       Qlogic’s TrueScale Product Family


       Intel® Many Integrated Core Architecture
Intel® Xeon® Processor E5 Family:
                                    Foundation of HPC
• Intel® Xeon® processor remains                                                 Architecture Presence in Top 500
  #1 architecture                                                       100%
                                                                          90%
    – 78% of new Top500 systems                                           80%

• Rapid Adoption of Intel® Xeon®                                          70%
                                                                          60%
  Processor E5 Family                                                     50%

    – 45 systems just 3 months post-launch                                40%
                                                                          30%
                                                                          20%
                                              University of
   Genci              LRZ    LLNL   LANL       Frankfurt                  10%
                                                                            0%
                                                                                   Jun Nov Jun Nov Jun Nov Jun Nov Jun Nov Jun Nov Jun
                                                                                   '06 '06 '07 '07 '08 '08 '09 '09 '10 '10 '11 '11 '12

                                                                                              Intel        IBM Power   AMD   Other


 Source: Top500.org                  Other brands and names are the property of their respective owners.
Intel® Xeon® Processor E5 Family:
               Architecture for Discovery
                     Example: Cellular Imaging
                                                                                          Cellular Imaging Execution Time
                                                                                                      (Lower is Better)


                                                                                            467            447
• Drug discovery is one of the                                                                                             239
  most CPU intensive workloads
• Processing of image data to                                                             Xeon 5660   Xeon 5680           Xeon E5-
                                                                                                                           2680
  support discovery of new
  drugs                                                                                   “The new Intel® Xeon®
                                                                                           processor E5 family-based
• Real-time cell segmentation                                                              platform(s) doubles the speed
  and classification at 2X speed                                                           of cellular image analysis.”

                  See the Live Demo at Booth #540
                    Other brands and names are the property of their respective owners.
Next Front of System Innovation: Fabrics
                            HPC Expertise
                     Intellectual Property
                 World-class Interconnects
                                                                                                               Intel’s
                             HPC Expertise
            Fabric Management & Software                                                                    Comprehensive
  Highest Performance, Scalable IB Products
                                                                                                            Connectivity and
            Low-latency Ethernet Switching
                                                                                                                 Fabric
             Data Center Ethernet Expertise                                                                    Portfolio
    High Radix & Low Radix Switch Products


Market Leading Compute & Ethernet Products
                        Platform Expertise



                    Unprecedented Rate of Innovation in HPC Fabric
                                      Other brands and names are the property of their respective owners.
Driving from Petascale to Exascale

                 Workhorse for Petascale Systems:
                     Flexible, Powerful for a
                    Broad Range of Workloads


                         Path to Exascale:
    +                      Efficient for
                    Highly Parallel Applications
Transformational Performance From
          Workstations to Supercomputers
            Example: Next Generation Manufacturing



• RADIOSS*: complete finite
  element solver
• Programming continuity a
  major advantage
• SGI UV2 system will support
                                                             “… we were able to take advantage of
  Intel® MIC Architecture                                     the many core architecture to
                                                              drastically reduce time to solution.”
                 See the Live Demo at Booth #540
                   Other brands and names are the property of their respective owners.
Announcing Brand for Intel® MIC Architecture
             Based Products




          Intel® Xeon® Phi™ Product Family
Why Did We Create the Intel® Xeon® Phi™ Brand?

         • Intel® Xeon® Brand
           – Industrial strength processing
           – Enterprise, cloud, mission critical, & technical compute


         • Intel® Xeon® Phi™ Brand
           – Part of the Intel® Xeon® brand family
           – Parallel performance to power breakthrough innovation
           – Evokes many concepts in science & nature
Game Changer for HPC Performance &
                                                            Programmability
                                                                        Single Source
                                     Compilers
                                   and Runtimes




                                                                                                                                                                  15




                                      “Unparalleled productivity… most of this software does not run on a GPU”
                                                                                                        Dr. Robert Harrison, NICS, ORNL

“R. Harrison, “Opportunities and Challenges Posed by Exascale Computing
- ORNL's Plans and Perspectives”, National Institute of Computational Sciences, Nov 2011”   Other brands and names are the property of their respective owners.
Announcing Breakthrough Performance
                                         on Intel® Xeon® Phi™ Coprocessor
                                                                   (Codenamed Knights Corner)



                 >1                                                                              118
                TFLOP                                                                           TFLOPs
          Linpack (HPL) in a node                                                               #150 on the Top500



                              In Production In 2012, Enabled by 22nm 3-D TriGate Transistors

Source: Intel Discovery Cluster Linpack benchmark run, June 2012
Broad Ecosystem Support




   Other brands and names are the property of their respective owners.
Barry Bolding
  Vice President,
Corporate Marketing
     Cray Inc.


            Other brands and names are the property of their respective owners.
Intel in High Performance Computing
                                                                                            Leading
    Terascale                                            Manufacturing                 Performance,
    Research                                                  Process                  Performance/
                                                                                               Watt

                                                                  Defined
     Platform                                                                             Broad SW
                                                                      HPC
      Building                                                                                Tools
                                                               Application
       Blocks                                                                              Portfolio
                                                                 Platform

                                                                                        Large Scale
                                                               Dedicated,
  Interconnect                                                                             Clusters
                                                               Renowned
   Technology                                                                          for Test and
                                                                Expertise
                                                                                       Optimization



Strategic Commitment to High Performance Computing
                 Other brands and names are the property of their respective owners.
Summary

• HPC market:
  Growing and seen as a national + industrial imperative
• Intel® Xeon® Processor E5 Family:
  Rapid adoption, Leading the Industry
• New Intel® Xeon® Phi™ Product Family:
  Brand covers all Intel® MIC Architecture based products
  Provides additional boost for highly parallel applications
  Ecosystem aligned and supportive
• Intel in HPC:
  Building block alignment provides customers leading HPC technology
The Explosion of Petascale in the Race to Exascale
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. Potential disruptions in the high
technology supply chain resulting from the recent disaster in Japan could cause customer demand to be different from Intel’s expectations. 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. 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; product mix and pricing; 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. 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. The tax rate expectation
is based on current tax law and current expected income. The tax rate may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the
estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to
realize deferred tax assets. Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the
fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments. 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. 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 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 us 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 report on Form 10-Q for the quarter ended April 2, 2011.


Rev. 5/9/11

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The Explosion of Petascale in the Race to Exascale

  • 1. The Explosion of Petascale in the Race to Exascale Rajeeb Hazra VP, Intel Architecture Group, GM, Technical Computing Intel Corporation @IntelITS
  • 2. Legal Disclaimers Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance is 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. 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's compilers may or may not optimize to the same degree for non-Intel microprocessors for optimizations that are not unique to Intel microprocessors. These optimizations include SSE2, SSE3, and SSE3 instruction sets and other optimizations. Intel does not guarantee the availability, functionality, or effectiveness of any optimization on microprocessors not manufactured by Intel. Microprocessor-dependent optimizations in this product are intended for use with Intel microprocessors. Certain optimizations not specific to Intel microarchitecture are reserved for Intel microprocessors. Please refer to the applicable product User and Reference Guides for more information regarding the specific instruction sets covered by this notice. 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. 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/turboboost 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 products, computer systems, dates and figures specified are preliminary based on current expectations, and are subject to change without notice Copyright © 2011 Intel Corporation. All rights reserved. Intel, the Intel logo, Xeon MIC, TrueScale Infiniband, TXT 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. Other Names and brands may be claimed as the property of others.
  • 3. HPC: Driving Data Center Growth 2X Volume Growth* Cloud * Growth >25% HPC Growth* >20% Network Growth* >30% Doubling Volume and Revenue Source: Intel * Forecast , CAGR
  • 4. Race for HPC Competency • Industrial challenges Performance of Countries – Renewable energy – Genomics/ Biosciences – Design and Simulation – Media and Entertainment • National security challenges – Threat monitoring and cyber security Source: Top500.org – Nuclear safety To Compete, You Must Compute
  • 5. The Road to Petascale Everywhere 1997 2012 2018 Teraflop Ecosystem Petaflop Ecosystem Exaflop Ecosystem ASCI RED SEQUOIA Top Machine 1 TF 16 PF 1 EF Typical Workgroup .5 GF 5TF 0.5-1.0 PF 20kw Rack X X X # of Workgroup 140,000 160,000 170,000 Machines 70 TFLOPs 800 PFLOPs 170 ExaFLOPs *- Compute Capacity - All PC, Embedded and Server Combined
  • 6. Helping to Drive the Petascale Explosion 25 1 →10 Petaflop Systems: 20 4 Years 15 10 5 10 → 20 Petaflop Systems: <1 Year - 2007 2008 2009 2010 2011 2012 Intel Petaflop Systems Overall Petaflop Systems Source: Top500.org
  • 7. Top500: Rapid Expansion in Total FLOPs Top500 FLOPs Growth Largest all Intel® Xeon® Processor 140,000,000 Cluster Ever 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - 2.9 PetaFLOPs 2005 2003 2004 2006 2007 2008 2009 2010 2011 2012 Source: Top500.org Other brands and names are the property of their respective owners.
  • 8. What’s Intel Doing in 2012 in HPC… Intel® Xeon® Processor: E5-2600/4600 Product Families Fabric Technology: Cray’s Aries Interconnect Qlogic’s TrueScale Product Family Intel® Many Integrated Core Architecture
  • 9. Intel® Xeon® Processor E5 Family: Foundation of HPC • Intel® Xeon® processor remains Architecture Presence in Top 500 #1 architecture 100% 90% – 78% of new Top500 systems 80% • Rapid Adoption of Intel® Xeon® 70% 60% Processor E5 Family 50% – 45 systems just 3 months post-launch 40% 30% 20% University of Genci LRZ LLNL LANL Frankfurt 10% 0% Jun Nov Jun Nov Jun Nov Jun Nov Jun Nov Jun Nov Jun '06 '06 '07 '07 '08 '08 '09 '09 '10 '10 '11 '11 '12 Intel IBM Power AMD Other Source: Top500.org Other brands and names are the property of their respective owners.
  • 10. Intel® Xeon® Processor E5 Family: Architecture for Discovery Example: Cellular Imaging Cellular Imaging Execution Time (Lower is Better) 467 447 • Drug discovery is one of the 239 most CPU intensive workloads • Processing of image data to Xeon 5660 Xeon 5680 Xeon E5- 2680 support discovery of new drugs “The new Intel® Xeon® processor E5 family-based • Real-time cell segmentation platform(s) doubles the speed and classification at 2X speed of cellular image analysis.” See the Live Demo at Booth #540 Other brands and names are the property of their respective owners.
  • 11. Next Front of System Innovation: Fabrics HPC Expertise Intellectual Property World-class Interconnects Intel’s HPC Expertise Fabric Management & Software Comprehensive Highest Performance, Scalable IB Products Connectivity and Low-latency Ethernet Switching Fabric Data Center Ethernet Expertise Portfolio High Radix & Low Radix Switch Products Market Leading Compute & Ethernet Products Platform Expertise Unprecedented Rate of Innovation in HPC Fabric Other brands and names are the property of their respective owners.
  • 12. Driving from Petascale to Exascale Workhorse for Petascale Systems: Flexible, Powerful for a Broad Range of Workloads Path to Exascale: + Efficient for Highly Parallel Applications
  • 13. Transformational Performance From Workstations to Supercomputers Example: Next Generation Manufacturing • RADIOSS*: complete finite element solver • Programming continuity a major advantage • SGI UV2 system will support “… we were able to take advantage of Intel® MIC Architecture the many core architecture to drastically reduce time to solution.” See the Live Demo at Booth #540 Other brands and names are the property of their respective owners.
  • 14. Announcing Brand for Intel® MIC Architecture Based Products Intel® Xeon® Phi™ Product Family
  • 15. Why Did We Create the Intel® Xeon® Phi™ Brand? • Intel® Xeon® Brand – Industrial strength processing – Enterprise, cloud, mission critical, & technical compute • Intel® Xeon® Phi™ Brand – Part of the Intel® Xeon® brand family – Parallel performance to power breakthrough innovation – Evokes many concepts in science & nature
  • 16. Game Changer for HPC Performance & Programmability Single Source Compilers and Runtimes 15 “Unparalleled productivity… most of this software does not run on a GPU” Dr. Robert Harrison, NICS, ORNL “R. Harrison, “Opportunities and Challenges Posed by Exascale Computing - ORNL's Plans and Perspectives”, National Institute of Computational Sciences, Nov 2011” Other brands and names are the property of their respective owners.
  • 17. Announcing Breakthrough Performance on Intel® Xeon® Phi™ Coprocessor (Codenamed Knights Corner) >1 118 TFLOP TFLOPs Linpack (HPL) in a node #150 on the Top500 In Production In 2012, Enabled by 22nm 3-D TriGate Transistors Source: Intel Discovery Cluster Linpack benchmark run, June 2012
  • 18. Broad Ecosystem Support Other brands and names are the property of their respective owners.
  • 19. Barry Bolding Vice President, Corporate Marketing Cray Inc. Other brands and names are the property of their respective owners.
  • 20. Intel in High Performance Computing Leading Terascale Manufacturing Performance, Research Process Performance/ Watt Defined Platform Broad SW HPC Building Tools Application Blocks Portfolio Platform Large Scale Dedicated, Interconnect Clusters Renowned Technology for Test and Expertise Optimization Strategic Commitment to High Performance Computing Other brands and names are the property of their respective owners.
  • 21. Summary • HPC market: Growing and seen as a national + industrial imperative • Intel® Xeon® Processor E5 Family: Rapid adoption, Leading the Industry • New Intel® Xeon® Phi™ Product Family: Brand covers all Intel® MIC Architecture based products Provides additional boost for highly parallel applications Ecosystem aligned and supportive • Intel in HPC: Building block alignment provides customers leading HPC technology
  • 23. 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. Potential disruptions in the high technology supply chain resulting from the recent disaster in Japan could cause customer demand to be different from Intel’s expectations. 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. 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; product mix and pricing; 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. 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. The tax rate expectation is based on current tax law and current expected income. The tax rate may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties; and the ability to realize deferred tax assets. Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments. 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. 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 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 us 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 report on Form 10-Q for the quarter ended April 2, 2011. Rev. 5/9/11