Intel Targets Gov't Business With New Subsidiary

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Intel has formed a subsidiary charged with growing the company's business relationship with the U.S. government, with the new organization's initial focus on high-performance computing, the company said.

Intel Federal, with offices in Oregon, California and Washington, D.C., will look to help the U.S. Department of Energy and other agencies build high-performance computing systems, including exascale systems, Intel said. Intel offers clustering software, Xeon processors and other products aimed at high-performance computing needs.

Until now, Intel has sold to the U.S. government through OEMs, said spokesman Chuck Mulloy. He didn't have government sales figures available for Intel, because the company has not sold directly to government agencies.

Intel launched the new subsidiary Tuesday. Dave Patterson, former president and CEO of video networking vendor Optelecom-NKF and of Siemens Government Services, will serve as president of Intel Federal.

Intel hasn't yet announced the specific products the subsidiary will pitch to agencies, although the company's Xeon processors are targeted to high-performance computing, Mulloy said. The subsidiary will be open to working with all government agencies as it ramps up, he said.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's e-mail address is grant_gross@idg.com.

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