Intel Names Krzanich CEO to Replace Otellini

By Jeffrey Burt  |  Posted 2013-05-02 Print this article Print

For his part, Krzanich touted the company he is taking over as an industry leader, thanks to its technology and its employees.

"We have amazing assets, tremendous talent, and an unmatched legacy of innovation and execution," he said in a statement. "I look forward to working with our leadership team and employees worldwide to continue our proud legacy, while moving even faster into ultra-mobility, to lead Intel into the next era."

Intel continues to be the top chip producer for PCs and servers, but the company is looking to rapidly expand into a wide range of new markets, from mobile devices and cloud computing to storage, networking and software. Company executives also are looking to leverage its high-end fabs and manufacturing prowess to create a foundry business building chips for other companies.

In an April 16 conference call with analysts and journalists to talk about the company's first-quarter earnings, Otellini noted that during his tenure the company has aggressively extended its reach into new markets, with both he and Smith talking about a "market of computing," where the distinction between devices such as notebooks, tablets, Ultrabooks and convertible systems disappears. Intel's goal is to provide x86-based chips for any computing device.

"We compete wherever there is computing," Otellini said.

Intel for the past several years has been driving up both the performance and energy efficiency of its chips for such devices as tablets, smartphones and microservers. The company has an aggressive road map for this year, from its upcoming next-generation Core "Haswell" chips to a range of new Atom systems-on-a-chip (SoCs), including "Bay Trail" and "Merrifield." It will now be Krzanich's job to oversee the company's future strategy.

Roger Kay, principle analyst with Endpoint Technologies Associates, said that despite the speculation about Intel considering outside candidates, the new CEO was going to be an Intel executive.

"After the fact, it seems obvious," Kay told eWEEK. "They're not going outside. They never go outside."

In Krzanich, Intel has a person who, as COO, had a high-level view of all of the company's operations and had managed more than 50,000 people spanning everything from Intel's manufacturing and foundry operations to human resources, IT and China efforts, he said.

In addition, given Intel's size and operations, it couldn't afford to have someone from outside the company come in as CEO and make arbitrary decisions that could negatively reflect on Intel and what it is trying to do, Kay said. He pointed to Hewlett-Packard's difficult 11 months under Leo Apothoker, the former SAP CEO who tried to make HP more of a software company and announced the company was getting rid of its PC business. HP is still trying to recover from Apotheker's brief tenure and general instability in the CEO office.

"[Intel] just cannot afford for anything like that to happen," Kay said.


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