INTEL - FELIPE RICHARD Jan 1411

Argentina Software Development Center

Felipe Richard

January 2011

Software and Services Group 2

Agenda

The Software Industry in Argentina

Government Incentives

A Fast Growing Sector

An Intel Success Story: ASDC – Argentina Software

Development Center



Government Incentives


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


Agreement between the Province of Cordoba and

Intel

Intel Commitment

• Hire 430 employees

Province of Cordoba

Commitments

• Subsidy of 7.5% of payroll costs

• Facilities

• Turnover and Stamp Tax

exemptions

Other multinationals have similar agreements



A Fast Growing Sector


The Academic World

Intel Programs:

• Post-graduate Program

• Scholarship programs & Internships

• Research grants & Laboratory

donations

• Train-the-trainer courses

• Open Source Innovation Center

• Seminars, lectures and talks 4

Countrywide:

25,000 students start every year

2,700 graduates per year

In Córdoba:

6 major universities

350 graduates per year

University Careers:

• Systems Engineering

• Computer Science

• Electronic Engineering

• Telecommunications Engineering

• Computer Engineering


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.


Revenues (U$S M) Exports (U$S M) Employment

Revenues, Exports and EmploymentSoftware Industry - Argentina


An Intel Success Story: ASDC

Argentina Software Development Center

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Software and Services Group

Córdoba Province

• Córdoba City Population: ~1.4 Million.

• 12% of the total population are university

students

• 6 major universities are located in the city

Argentina

• Highly educated population in LAR

97.2% literacy rate° (US is at 99%)

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Where we are

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

• 4hrs ahead of PDT and 5hrs

PST


Short history...

Barrett commits

to the region

Potential sites

evaluation

Córdoba selected,

LOI signed

Agreement

signed

(March 27)

2003 2004 2005 2006

Legislature

(May 10)

Pioneer

class

(May 15)

Economy Minister, Roberto Lavagna and CEO Craig Barrett State Governor, De La Sota and CEO Paul Ottellini


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)

And everything else we need to function:

• Human Resources, Finance,

Ops and Facilities, and Biz Dev

ASDC Basics

Paul Otellini

Renee JamesSSG

Christos Georgiopoulos

DRD

Jose Luis Romanutti

ASDC

Bill SavageDPD

Don Harbert SWSD


Emerging Market MaturationHW and SW Development


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…


16

But what does ASDC’s vision take?

Families

Universities Schools

Innovative Talent

Teams

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


Executing the vision: going beyond technology &

engineering

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Research and Path finding

• 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

Architecture

• In house architecture teams for all our major projects

• Contribute on key forums & projects

Business Development

• Many employees with business degrees

• Experience on business and Market Research, Financial analysis and business models

User experience design

• Leverage external contractors for graphic design

• Ramping up an in house user experience design team

Hosted services operation

• 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


ASDC Projects in the Corporate Strategy Context


Services Infrastructure

Current ASDC Projects

AppUpp

Tango Creek

HPC

Software Path finding and Innovation

ASPI

• AppUp Lab

• Smart Cloud

• Parallel universe

• iPhone Apps

Porting

• Privacy on Social

Networks

• AppUp Store

• Strategy &

Product

Management


Plataforma de Servicios


The App Store


Thank You


What is in for Cordoba?


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


Evaluating Locations as R&D Centers

Destinations


Back Up


ED, 71%

MS, 22%

PhD, 7%

ASDC Engineering Profile

ED

MS

PhD

Up to 3 Years28%

> 10 Years27%

> 3 Years45%

ASDC Engineering Experience

Up to 3 Years

> 10 Years

> 3 Years

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ASDC People Profile

Development

• High Availability Carrier Grade Platforms experience. (Advance TCA, 3G UMTS Base Station and TMN Networks).

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

• Frameworks and tools applications experience.

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

High Maturity

High

Academic

ProfileQuality

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

Academic

• More than 40 scientific publications


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22

National International

20.00%

29.17%

63.64%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

2006 2007 2008 2009

Engineering Excellence

Improving filings, not submissions

0

1

2

3

4

5

6

7

8

9

10

2007 2008 2009

Intel System Software Conference

SWPC

Research at Intel Day

CTG Country Fair

SES

IDFsParticipation in Intel sponsored Technical

events

Steadily growing in depth and breadth

Interesting factoid:our innovation practice

0.95 IDFs per employee per year

ratio compares favorably to Intel

Labs’ 0.7

4

5

13

0

2

4

6

8

10

12

14

2006 2007 2008 2009

Participation in industry-sponsored technical

events

20+ Organizers and Chairs+50 technical articles

Software and Services GroupSoftware and Services Group

ASDC Operations and Controls

Center risk assessment conducted by SSG

Controls, LAR risk and controls, IIRS, and

local operations.

Maturity Grading: Repeatable

ZERO high priority “A” gaps were found

Level 1 2 3 4

Ad Hoc InitialRepeata

bleManaged

Definition

Culture

Experience

Process

Application

Argentina Regulations:• 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

US Export

Regulations: • Argentina is considered a Non

Controlled Country

Risk Assessment

Import/Export Controls

HPC lab in ASDC since

2007

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INTEL - FELIPE RICHARD Jan 1411

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