Intel Betting Machines Will Need Its Chips Rather Than Web

More than a third of the 15 billion devices connected to the Web by 2015 will be non-standard computing machines, according to Ton Steenman, Intel's vice president for embedded devices. They will generate a flood of data that can't be processed in remote computing centers, and will need powerful semiconductors to analyze the information.

Intel's fastest-growing business is selling server chips to cloud services providers, yet computing over the Internet won't be the answer in every situation, Steenman said. That opens up an opportunity as demand shifts away from personal computers toward smartphones and tablets, areas where Intel has struggled to win orders, he said.

Intel, which trimmed its third-quarter sales prediction last week amid a slump in PC demand, will get $2 billion of its estimated $53 billion in revenue this year from chips used in so-called embedded systems, he said."If you look at the growth of the network and the growth of storage, the amount of data is far outpacing that," Steenman said at a company conference in San Francisco.