Intel Plans Foray Into Internet Services.

Intel Corp. said it was planning a big move into the Internet services business by building data centres around the world, the New York Times reported Friday. Intel_s new strategy reflects the lengths at which the company is willing to go to cash in on the Internet, which it has recognised as both a challenge and an opportunity, the newspaper reported. Sprawling installations filled with powerful small computers, known as server farms, are used to handle electronic commerce and host the World Wide Web sites for other companies. Intel presented its plans for the data farms at a meeting with securities analysts Thursday in New York. Though Intel_s profits have held up well so far, many analysts believe that the rise of the Internet will inevitably cut into its margins. Consumers are increasingly expected to use simpler, lower-cost devices - from handheld machines to television set-top boxes - to access the Internet, according to the newspaper. The proliferation of these so-called Internet appliances will not supplant personal computers, but the Internet will fuel more diverse computing technologies and other access devices. This will undermine the profits of the technology standardbearers in the PC-centric era, that is, Intel and the Microsoft Corp., whose Windows operating system is what enables people to operate most PC_s. Some analysts, however, doubt Intel_s skills as a chipmaker give it any edge in running huge data centres. But Intel insists that the server-farm plan fits neatly with its long-term strategy.