Intel's New No. 2 Executive Outlines Chip Maker's IoT Future
Intel is going through a time of turmoil as company officials look to create a future for the giant chip company that has less to do with traditional PCs and mobile devices and more with the Internet of things, the cloud and 5G connectivity.
The upheaval has been felt in the company's workforce (including 12,000 job cuts), its executive team and its product roadmap, including the recent decision to drop some low-power systems-on-a-chip (SoCs) aimed at smartphones to instead focus more money and effort on the other growth areas. All of this is part of a larger plan laid out by CEO Brian Krzanich, who wrote in a post on the company blog last month calling the focus on the Internet of things (IoT), cloud and 5G as part of Intel's "virtuous cycle of growth."
A significant step in the company's repositioning came in November 2015 when Krzanich named longtime Qualcomm executive Venkata "Murthy" Renduchintala president of the newly formed Client and Internet of Things Businesses and Systems Architecture Group. It was an unusual move. Intel traditionally has hired top executives from within the company, but Krzanich instead went outside and tapped an official from a key competitor.
The hiring led to the exodus of several longtime Intel veterans and brought in someone who could take an objective view of the business. In an internal memo to employees in April, Renduchintala said the company needed to do a better job in such areas as competitiveness and focusing on the customer.
Intel is the only company will all the hardware and software assets needed for the new cloud- and IoT-centric world, the ex-Qualcomm official says.
The changes in the company have raised questions about Intel's game plan and future, which Krzanich looked to address in his blog post. This week, Renduchintala wrote in his own blog post about his view of Intel's transformation and the reasons he chose to make the move from Qualcomm. A key is that Intel's past positions it well for addressing the emerging business opportunities, he said.