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Wednesday, November 08, 2006

Intel Moves Into Software (INTC)

Maybe Intel is so down on the chip market that it hopes that if it moves into software sales it can improve its revenue picture. The chip giant announced yesterday that it would start selling a package of Web 2.0 software.

The new software package, called SuiteTwo, is targeted at helping office employees communicate with one another more effectively using blogs, wikis, and syndicated news feeds.
The description of the package begs the question of what is wrong with e-mail, instant messaging and RSS feeds. Many business employees already have these services on their PCs and moving them away from this may be difficult.

Nonetheless, the product will be available to all of Intel's PC clients, which means it could have a very large distribution base. The package will cost about $200 a year.

Why would anyone pay $200 for new software when their RSS feeds, e-mail, VoIP, and IM are free?

Good question.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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