BUSINESSWEEK ONLINE : MARCH 13, 2000 ISSUE
COVER STORY

THE NEW INTEL


NEW BUSINESSES
Intel's New Business Group has pumped more than $50 million into 25 small projects. They vary from a secure medical ID system for doctors on the Net to terminals installed in the backs of seats at Madison Square Garden.
Chart: Web Hosting Revenues
DATA: INTERNATIONAL DATA CORP., COMPANY REPORTS
THE BOSS
Gerry Parker, 56, is a widely respected 31-year Intel veteran who previously ran the company's manufacturing. Why an operations guy in business development? Because he makes things happen. "We're looking for as many ideas as possible," Parker says.

PRODUCTS
Only a few projects have been revealed. One, an Oregon startup called Vivonic, will sell a $230 digital handheld health planner that links to a pc and a Web site. Another, called PassEdge, is developing technology for protecting digital content. And the first of a dozen Web-hosting centers is now open in Santa Clara, Calif.

HOW INTEL STACKS UP
It's too early to say how Intel's startups will do. But Intel is not the first to spy the opportunity for Web hosting. The top players, including Exodus and IBM, have 30% of the market--with Intel nowhere in sight. Intel thinks it can break in by offering soup-to-nuts e-commerce services.

ACQUISITIONS
In 1998, Intel bought Seattle-based iCat, a maker of easy-to-use e-commerce programs aimed at small to midsize businesses.

MARKET GROWTH
Web hosting is one of the the fastest-growing segments of the information technology business.



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