INTEL - FELIPE RICHARD Jan 1411

Argentina Software Development Center Felipe Richard January 2011

Agenda The Software Industry in Argentina  Government Incentives  A Fast Growing Sector

An Intel Success Story: ASDC – Argentina Software Development Center

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The Software Industry in Argentina Government Incentives

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Software Promotion Law – 25922 Benefits 1. Approximately 50% reduction of Employer Labor Tax

2.

60% abatement of Corporate Income Tax

3. Federal Fiscal stability for 10 years

Requirements (2 out of 3) 1. +3% of revenues in R&D activities 2. Software exports are +8% of software revenues 3. Quality Certification

30% of software companies are enrolled in this Program Software and Services Group

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Agreement between the Province of Cordoba and Intel Province of Cordoba Commitments

Intel Commitment • Hire 430 employees

• Subsidy of 7.5% of payroll costs • Facilities

• Turnover and Stamp Tax exemptions

Other multinationals have similar agreements Software and Services Group

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The Software Industry in Argentina A Fast Growing Sector

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The Academic World University Careers: • • • • •

Systems Engineering Computer Science

Electronic Engineering Telecommunications Engineering

Countrywide: 25,000 students start every year 2,700 graduates per year In Córdoba: 6 major universities 350 graduates per year

Computer Engineering

Intel Programs: • • •

Post-graduate Program

Scholarship programs & Internships Research grants & Laboratory

donations

• • •

Train-the-trainer courses

Open Source Innovation Center 4

Seminars, lectures and talks

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Multinationals with presence in Córdoba:

• EDS/HP – ~1500 employees  Application Development and support.

• Motorola – ~300 employees Distributed systems, telecommunication , embedded, real-time Operating Systems)

• IBM – ~100 employees IT & Infrastructure support services • Indra - ~250 employees  Application Develop. (ERP) and Air Traffic control systems

Multinationals in Argentina (Buenos Aires): • Google, Oracle, Nokia, Microsoft, NEC, Verizon, Sabre Holdings,

Tata.

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Revenues, Exports and Employment Software Industry - Argentina Revenues (U$S M)

Exports (U$S M)

Employment

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An Intel Success Story: ASDC Argentina Software Development Center

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Where we are

Córdoba Province

Time zone difference with US • 1hr ahead of EDT and 2hrs EST

• 4hrs ahead of PDT and 5hrs PST

• •

Córdoba City Population: ~1.4 Million.

•

6 major universities are located in the city

12% of the total population are university students

Argentina

•

Highly educated population in LAR  97.2% literacy rate° (US is at 99%)

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Short history...

2003 Barrett commits to the region

2004

2005

Potential sites C贸rdoba selected, evaluation LOI signed

Economy Minister, Roberto Lavagna and CEO Craig Barrett

2006 Agreement signed (March 27)

Legislature (May 10)

Pioneer class (May 15)

State Governor, De La Sota and CEO Paul Ottellini

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ASDC Basics Staff of 150 (30% of them has a post graduate degree, 7 PhDs). Expected to grow up to 400+ in the next several years.

The only SSG site in Latin America, home to workgroups that belong to:

• Developer Relationship Division (DRD) • Software and Services Division (SWSD) • Software Pathfinding and Innovation (ASPI) • Developer Products Division (DPD)

Paul Otellini

And everything else we need to function:

• Human Resources, Finance,

Renee James SSG

Ops and Facilities, and Biz Dev Christos Georgiopoulos DRD

Bill Savage DPD

Jose Luis Romanutti ASDC

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Don Harbert SWSD

Emerging Market Maturation HW and SW Development

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Vision : ASDC is a leading software Center of Excellence within Intel, on par with any other leading Intel site anywhere in the world. It has a definite technical and site identity, and contributes directly to strategic programs within Intel.

But in 5 years‌ ď Š Software and Services Group

But what does ASDC’s vision take?

Universities

Schools

Innovative Talent Families

Teams

Innovation is much more than good ideas, it is about execution ….

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Executing the vision: going beyond technology & engineering Research and Path finding

Architecture

Business Development

User experience design

Hosted services operation

• Argentina Software Pathfinding and Innovation team • 45 IDFs submitted; 13 accepted for patent filing; 1 trade secret; 0.95 IDF/employee/year • TSLRP 2010 finalists

• In house architecture teams for all our major projects • Contribute on key forums & projects

• Many employees with business degrees • Experience on business and Market Research, Financial analysis and business models

• Leverage external contractors for graphic design • Ramping up an in house user experience design team

• We operate a services scaling to millions of consumers (AppUp, IWD, MV update) • We have a team to provide 3 tier support for our products

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ASDC Projects in the Corporate Strategy Context

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Current ASDC Projects AppUpp

HPC

• AppUp Store • Strategy & Product Management

ASPI

Tango Creek Services Infrastructure

Software Path finding and Innovation

• iPhone Apps • AppUp Lab Porting • Smart Cloud • Parallel universe • Privacy on Social Networks Software and Services Group

Plataforma de Servicios

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The App Store

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Thank You

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What is in for Cordoba?

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What is in for the local community?

• • • • • •

High Profile Employment Repatriation of talent Business for local companies R&D in conjunction with local universities Sound competition for talent Enhance the brand of Cordoba as a Technology Hub

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Evaluating Locations as R&D Centers Destinations

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Back Up

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ASDC People ProfileHigh Maturity ASDCEngineering Experience

Development

• High Availability Carrier Grade Platforms > 3 Years 45%

experience. (Advance TCA, 3G UMTS Base Station and TMN Networks).

Up to 3 Years 28% Up to 3 Years

• Large scale Data Management and Distributed Systems experience (over 5TB sets & 100's of machines)

> 10 Years

> 10 Years 27%

> 3 Years

• Frameworks and tools applications experience.

High Academic Profile

Quality

ASDCEngineering Profile PhD, 7%

• Experience achieving ISO-9000:2001 certification and CMM Level 5.

MS, 22%

Academic

ED

• More than 40 scientific publications

MS PhD

ED, 71%

(*) ED – Engineer Degree (5 years + thesis)

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Engineering Excellence Participation in Intel sponsored Technical events 10 9 Intel System Software Conference

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IDFs 70.00% 60.00%

50.00%

SWPC

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40.00%

5

Research at Intel Day

4 3

30.00%

CTG Country Fair

20.00%

SES

10.00%

Interesting factoid: our innovation practice 0.95 IDFs per employee per year ratio compares favorably to Intel Labs’ 0.7

29.17%

2

1 0

63.64%

20.00%

0.00%

2007

2008

2009

2006

2007

2008

2009

Improving filings, not submissions ď Š

Steadily growing in depth and breadth

Participation in industry-sponsored technical events 14

National

International

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12 10 8

22 29

6

5

4

4

2 0

2006

+50 technical articles Software and Services Group

2007

2008

2009

20+ Organizers and Chairs

ASDC Operations and Controls Risk Assessment Level

Center risk assessment conducted by SSG Controls, LAR risk and controls, IIRS, and local operations.

Definition Culture Experience Process Application

Maturity Grading: Repeatable ZERO high priority “A” gaps were found

1

2

Ad Hoc

Initial

3 4 Repeata Managed ble

Import/Export Controls

US Export Regulations: •

Argentina Regulations:

Argentina is considered a Non Controlled Country

HPC lab in ASDC since 2007

•

No restrictions to technology / software / hardware import

• •

International Conventions adhered National standards organizations: – –

Argentine Institute of standards and certification All electrical equipment must comply with IRAM certification

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