CIO Doug Busch Describes Intel's IT Investments for Business Value, and Innovation Imperative for IT Cost-Cutting in Gartner Fellows Interview.

STAMFORD, Conn. -- Doug Busch, chief information officer of the Intel Corporation, discusses key factors in leading information-technology (IT) functions, including emphasizing innovation as an essential piece of cost-reduction programs, in an interview released this month by Gartner, Inc.

Mr. Busch oversees a $1.2-billion budget for the world's largest manufacturer of computer chips and a leading manufacturer of computer, networking and communications products. He was named Intel's CIO in January, 2002 after serving in various technical and management positions since joining the company in 1987.

In the interview, conducted as part of The Gartner Fellows Interview series featured monthly on www.gartner.com, Mr. Busch emphasized these points, among others, in discussing Intel's world-class IT programs:

--IT isn't some runaway train of money. It is the foundation of why Intel is able to be competitive.

--Intel's IT function remains focused on cost savings, emphasizing innovative methods not destructive to the IT team itself or to Intel's business objectives. You can't do it by slashing and burning.

--Every organization within IT needs a forward-looking R&D component. If you don't look downstream at opportunities in front of you, you choke off the path of continuous improvement.

--Security issues in IT must receive the same emphasis as reliability and data integrity. Security has to be designed in at the conceptual stage.

--To measure return on IT, understand clearly the purpose of each investment. Apply this to fine-tuning how projects are designed and executed.

--When projects don't pan out, learn from them and move on. Have the courage to kill a program, but not punish people who took the risk.

--IT has been the poster child in the media for failed business projects. But name another function that's done better: Acquisitions delivering forecasted financial return? New products making it to market on time and on budget? Executive hires who turned out as anticipated? IT is not that bad in comparison.

Mr. Busch said in the interview that Intel's spending on information technology in 2004 is "pretty much flat" after declines of approximately 12 percent in 2003 and 4 percent in 2002. "The balance of our spending is shifting a bit," he said. "Capital spending is up probably 20 or 30 percent."

The interview was conducted by Martin Reynolds, Gartner group vice president and research fellow and a specialist in forecasting IT industry trends, competitive forces and influences. "IT organizations have to focus on business value, beyond delivering IT services," Mr. Reynolds said. "Their companies' success depends on it, something Intel leaders have long understood. Intel's internal IT is expert in crossing the gap between technology and business."

The interview is posted to the homepage of the gartner.com web site, found at the following address: http://www4.gartner.com/research/fellows/asset_98188_1176.jsp.

The Gartner Fellows Interview features Gartner analysts each month in discussions with leaders in technology, business and government on significant and timely industry issues. The Gartner Fellows are 15 Gartner research analysts, distinguished by their reputations as innovators and thought leaders, who identify and examine emerging trends and technologies.

To speak with Mr. Reynolds about the Doug Busch interview or related Gartner research on the Business Value of IT and other topics, contact Tom McCall on September 13 at the Gartner Dataquest Semiconductor Industry Summit [phone] (mobile) or thereafter in San Jose at [phone] (office).

Intel's Gelsinger Speaks Tuesday at Gartner Dataquest Semiconductor Industry Summit

Mr. Busch's Intel colleague, Pat Gelsinger, chief technology officer and head of technology strategy, is one of several leaders speaking at the Gartner Dataquest Semiconductor Industry Summit this week in San Francisco, California. The two-day conference begins today at the Fairmont San Francisco.

Intel uses its own technology to run its IT operations, and applies that expertise to help shape its investments in its product plans. Mr. Gelsinger will discuss technologies that will drive new business opportunities for Intel and its customers over the next decade. He is scheduled for both an on-stage interview and a panel discussion on Tuesday.

About Gartner Dataquest Semiconductor Industry Summit

Gartner Dataquest Semiconductor Industry Summit has attracted high-level attendees from across the semiconductor industry -- including executives from chip manufacturers, equipment suppliers, design firms, original equipment manufacturers (OEMs) and government -- as well as institutional investors. Through exclusive Gartner Dataquest research and company presentations, Gartner is identifying how industry participants can position themselves to respond to the opportunities and challenges in established and emerging technologies. Additional information about this Summit is available on Gartner's Web site at www.gartner.com/us/semicon.

About Gartner

Gartner, Inc. (NYSE: IT and ITB) is the leading provider of research and analysis on the global information technology industry. Gartner serves more than 10,000 clients, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company focuses on delivering objective, in-depth analysis and actionable advice to enable clients to make more informed business and technology decisions. The Company's businesses consist of Gartner Intelligence, research and events for IT professionals; Gartner Executive Programs, membership programs and peer networking services; and Gartner Consulting, customized engagements with a specific emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has more than 3,500 associates, including approximately 1,000 research analysts and consultants, in more than 75 locations worldwide. For more information, visit www.gartner.com.