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    Intel extends lifecycle support for IoT platforms to strengthen supply chains
    Monica Chen, Taipei; Willis Ke, DIGITIMES [Tuesday 27 June 2017]

    Intel has decided to sharply extend lifecycle support for its whole series of Internet of Things (IoT) solutions platforms from seven years to 15 years, in a bid to regain the confidence of its partners in the IoT supply chains and step up the development of IoT-related processor platforms and chipsets, according to a recent announcement issued by the world’s largest chipmaker.
    The decision is likely to drastically push up Intel’s operating costs, but whether it can work to maintain supply-chain partners and accelerate development of IoT solutions and applications, which the tech giant is fully betting on, remains to be seen, industry insiders said.
    IoT has been widely recognized as one of the most powerful engines driving the next-generation industrial revolutions, prompting leading international players, such as Intel, Qualcomm and Microsoft, to jump on the bandwagon by forging alliances or seeking mergers and acquisitions.
    But global IoT applications have progressed slowly in recent years, due mainly to the lack of unified standards for interoperability of IoT platforms and devices for a wide variety of applications. As a result, market demand for IoT solutions and applications has remained sluggish, significantly undermining the confidence of supply-chain partners, according to industry insiders.
    Expanding global IoT platform penetration rate
    The industry insiders said, however, the latest IoT platform lifecycle support program announced by Intel is expected to effectively boost the willingness of its partners to purchase or utilize Intel IoT solutions platforms and expand its global IoT platform penetration rate.
    Under the program, all Intel IoT solutions platforms, including next-generation 14nm Skylake-SP server and processor platforms, existing Skylake-architecture Xeon E3-12xx/15xxv5 series, and the sixth-generation Core, Pentium and Celeron processors will see their lifecycle support extended to the range of seven to 15 years from the existing maximum of seven years.
    In addition, those processor platforms recording higher shipment records, including N3700 (Braswell), Celeron N3xxx (Braswell) and J1900/N2xxx (Bay Trail), as well as Atom C2xxx (Rangeley), E3800 series (Bay Trail) are all covered by the new lifecycle support program.
    Industry sources said that Intel partners will surely benefit from the program, in that they can reduce the risks of platform conversion and cut the cost of IoT system installations, while Intel can strengthen its supply chains and galvanize the expansion of its IoT business turf. In fact, with the program, quite a few partners have gradually restored their confidence in IoT applications, the sources continued.
    In the first quarter of 2017, Intel raked in US$721 million in IoT-related revenues, showing an annual growth of 11% but commanding less than 5% of the company’s total revenues for the period. While IoT solutions products have yet to contribute notable profits to Intel, the extension of its lifecycle support period for IoT solutions platforms will certainly increase the firm’s operating costs and undermine its earnings in the sector.
    Intel announces extending lifecycle support for its IoT solutions platforms to regain confidence of supply-chain partners. Fu Shih-min
    Intel extending lifecycle support for its IoT solutions platforms.
    Photo: Fu Shih-min, Digitimes, June 2017
 
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