GELSINGER: For the consumer, it will happen in 2007. Consumers will move quickly. The product has a new user interface and the strength of Microsoft's marketing. The market for businesses will, of course, be more conservative. But they will look at it. They want a clear value proposition, and BitLocker and different security models and mobile capabilities [in Vista] all have a clear, solid value proposition. But it's a conservative customer base, so as a result it'll be late 2007 and 2008 when the business [customer] impact will start being felt. Even though I expect that once [Vista's value is] proven, customers will demand Vista-ready platforms today. They may not deploy for three more years in some cases, but we can expect it as a basic buying requirement very quickly [after Vista's launch].
CRN: Many industry analysts say Vista will require the purchase of a new PC. Yet other analysts say PCs shipped in the last couple of years are adequate. What's the truth?
GELSINGER: We'll have customers taking a look at their [PC] fleet and saying they will upgrade their year-three and year-four models now because in 2008 they will want to move to Vista. So we tend to see an acceleration in the replacement rate of older machines.
CRN: Do you expect Vista to drive a big PC refresh in 2007?
GELSINGER: We are expecting a positive [increase in PC sales]. A big refresh would clearly be overstating it.
CRN: With all the hype about Linux on the desktop and a new "LinTel"world, it seems the open-source operating system is failing to make gains in mainstream business desktop use. Why?
GELSINGER: [A lack of] applications.
CRN: Intel's relationship with AMD of late has been quite contentious. Now that AMD has partnered with Dell -- and upset some system builders -- do you see this as an opportunity for Intel to approach AMD's system builders and VAR partners?
GELSINGER: I can't answer that question.
CRN: Because you don't know or because you don't want to comment about AMD?
GELSINGER: Because I don't want to comment.
CRN: The launch of several version 1.0 Xen platforms -- including XenSource Virtual Iron in October and Red Hat Enterprise Linux 5 in the fourth quarter and Novell's currently shipping SUSE Linux Enterprise Server 10 -- is expected to drive sales of processors, since Xen harnesses Intel's VT-x extentions. What do you think will happen?
GELSINGER: We're enthusiastic about it, of course. I've got [virtualization] features in silicon, but the whole virtualization model has great value to IT pros. And we see that having a value even to clients with the vPro model and for appliance models. On the server side, we see Xen as absolutely great because VMware has been the only solution. You see Microsoft coming along with Viridian, and we've collaborated with them closely. I have a team of Xen developers. We are developing into the code base of Xen, making direct contributions.
NEXT: More on virtualization, silicon's rising capabilities and a look at the whitebook space.
