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Intel's Digital Home Still Under Construction

Digdia Research reports that a year ago Intel signaled their seriousness in the digital home market by forming a Digital Home Group under Don MacDonald that reports to CEO Paul Otellini. Intel is spending $200 million in strategic investments via Intel Capital alone. And, now they have launched their Viiv program with much fanfare and an even bigger budget.

Like many other companies in Silicon Valley, Intel knows that they can only ride the classic PC market for so long, and the shift in consumer spending towards consumer electronic products and services is one of the next growth markets. But, Intel does not make products that consumers think of as consumer electronics, so how can they play the game? Their answer to is to help create the market, and then have companies come to Intel for the silicon and systems required to deliver on the promise.

Intel is doing this in several ways:

-They are getting up on the podium to raise the visibility of their vision.
-They are doing primary research into the habits of consumers, including following them around as families aspire, experience and often times grapple with technology.
-They are working on numerous standards that support their Digital Home vision so that the industry will avoid the delay caused by the confusion a lack of standards can cause.
-They are investing in small companies with key enabling technologies and concepts in the hopes that many will fill in the gaps and help to advance the cause.
-They are making a big marketing and product investment behind a new Digital Home platform they call Viiv.

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