An Year in Review: Intel's reflections on technological innovation

2014 is just about the numbers as it is about the ideas. According to Intel, manufacturers of all stripes shipped about 20 million tablets in the third quarter alone and millions more smartphones and PCs. Intel maintained its focus on the Asia Pacific and Japan, which continue driving innovation as Europe and the US lag behind.

In Intel's mind, subtle improvements in technology dominated 2014. In this case, the True no-wire experience is something the company is particularly proud to highlight. This refers to Intel's drive to eliminate wiring computers everywhere, replacing them with wireless systems. The goal is to create a future where PC components are free of their physical tethers. This realisation shouldn't take too long: we already have wireless speakers, WiFi, and even (budding) wireless charging systems.

Another subtle intangible developed was the growth of big data. Intel revealed that I already powers 81% of the world's top 500 supercomputers. Data from these computers are help design complex models ranging from NASA's spacecraft to advanced nano-tech medicine.

2014's most visible consumer tech-trend, however, had nothing to do with subtlety. This year the world witnessed a full-blown explosion of wearable devices, especially watches and fitness trackers. Google Glass may have yet died a quiet death but wearable technology has an unbeatable momentum.

Intel also outlined its efforts to improve its social investments through such initiatives as the Intel Science and Engineering Fair (ISEF) that encourages the younger generation to use technology to solve social problems. It also outlined its efforts to source only conflict-free materials for its chips and switch to green power (albeit this only applies to the US).

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The year to come: What Intel expects in 2015

Intel's biggest bets are on integration and so-called "non-screen age’ of computing where computers without screens will come to dominate the market. Non-screen computers generally cover home appliances, smart sensors and other technology embedded in everyday items.

The next big thing is the spectacularly ambitiously named "Internet of Things’ and this is closely related to 'non-screen computing. In its simplest form, this involves getting everything that can carry a chip to talk to everything else that also carries a chip. So, connected home appliances, cloud computing and wearables, can work seamlessly together to create a rich computing experience.

Of course, designers and planners have bigger things in mind. The world they have envisioned covers entire cities and even entire states. Imagine, for instance, if traffic control was managed by intelligent roads (sensors embedded to determine traffic quantity) and alternate routes automatically sent out to people's smartphones to get them their destinations faster. Already, things seem to be working out in the real world and the numbers speak for themselves. In 2013, the Internet of Things (IoT) accounted for a $1.9 trillion in investments and many expect it to increase to about $7.1 trillion by 2020. Just to give you some reference, the entire GDP of the US in 2013 (Current US$) was somewhere around $16.8 trillion.

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What Sri Lanka has to offer

Intel is quite excited about Sri Lanka's potential for IT expansion and the country has some ambitious targets. For instance, Intel expects digital literacy to increase from 55% in 2014 to about 75% in 2016.  Broadband access will definitely help as it expands from 30% in 2014 to about 60% in the next few years. IT also seems to be the next 'big thing' for the Sri Lankan services sector, as employment in knowledge based jobs is expected to from 30,000 in 2014 to about 80,000 by the end of the decade. If all goes according to plan, Intel think the industry could balloon to about $20 billion by 2020.

None of this seems out of reach, despite the ambitious tone. Sri Lanka has some good IT infrastructure and we are well ahead of our South Asian peers in broadband technology and regulatory frameworks. While Sri Lankans are embracing 4G technology, Pakistan started selling the bulk of its 3G and 4G spectrum only in April of 2014. While there is a lot of room for improvement, it seems the regulatory framework does quite well. The finance and business case (and the necessary public incentives to increase coverage) might need to improve.

Sri computer literacy is also something that may improve its IT industry in the long-term. As Intel highlighted, around 40,000 schoolteachers are IT proficient (they know how to use a PC for everyday teaching and do basic research online). Moreover, 60-70% of schoolchildren have access to computers and approximately 7,000 of more than 10,000 schools have access to PCs, generally a lab of at-least 10 computers per school. Basic computer literacy aside, it is also important that we take literacy to the next level and encourage coding, which many schools continue to ignore. If Sri Lanka can phase out traditional skills and focus more on IT skills -such as coding and designing- in schools it will create an amazing eco-system that may help the country transition into a significant knowledge-exporting country.

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No Intel Manufacturing Plan in Hambantota

Intel also clarified that it does not intend to open a manufacturing plant in Hambantota, contradicting some rumours that emerged recently. Generally, these rumours are easy to dismiss. After all, an investment in a chip manufacturing plan costs around US$ 10 billion and those decisions are generally are made well in advance. Moreover, Intel has never publically suggested opening a plant in even if it did, it would be hard to image Sri Lanka as an attractive candidate. Its high electricity prices, limited human capital and lack of close access to important markets, and the absence of a supporting eco-system, should raise many red flags. Nevertheless, rumours by nature are stubborn tantalising things; few can resist a nice rumour of a super smartphone, a bendable screen or an AI for a butler.

Perhaps there is a lesson to learn: if something is too good to be true, it generally is. With that said, like Intel, we look forward to a splendid year of technological innovation to come, rumours and all.

By Navam Niles