Word: otellini
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Failure, of course, is not what Otellini has in mind. So how does he see Intel handling this raft of new challenges? For most companies, losing the CEO (Barrett must step down at age 65, according to Intel policy) would only add to the crisis. But Intel has a long history of smooth transitions from one leader to the next, and Otellini has been the heir apparent for more than two years. "Bob [Noyce] was the consummate entrepreneur," says Otellini, describing the company's founding chief. "Gordon [Moore] was the genius. Andy [Grove] was the management guru. Craig [Barrett...
...least, that emphasis has worked wonders. Otellini, the first nonengineer to helm Intel, has been stressing consumer-friendly products over speedier chips in his speeches for the past four years (he calls the strategy by the awkward name "platformization"). He put the plan to work in 2003 with another of his pet projects--the Centrino--a set of chips specifically designed for wi-fi-enabled laptops. For wi-fi capability, all you really need is the Pentium M, the chip at the heart of Centrino, but Otellini wanted to sell a bundle of chips along with it that would help...
Today, according to Mercury Research, Intel chips are inside 87% of laptop PCs. And in February 2005, Centrino got an upgrade to help it run music and graphics better--stepping onto graphics chipmaker NVidia's turf. With successes like that, it's no accident that Otellini is respected by Intel insiders as a steady hand--a welcome change in a company famous for its bitter boardroom battles. "In the Andy Grove era, it was very raucous," says Andy Bryant, Intel's CFO. "It was not unusual to have loud arguments in public places. Paul is a firm believer...
...Otellini (who once remarked that "a waking hour is a working hour") has wasted no time putting that political capital to work, announcing a wholesale reorganization of the company--splitting it into five groups with such names as "mobility" and "digital home," each of which will focus on different ways consumers use technology. Yet analysts have not stopped being skittish about the company's future. "They need to get their road map stabilized," says Kevin Krewell, editor in chief of Microprocessor Report,a trade magazine. "People in the industry count on Intel to know where it's going...
...thing, Otellini's "platformization" still has to prove itself in areas other than Centrino. Later this year Intel will announce an as-yet-unbranded platform for desktop computers (dubbed Desktrino by company insiders) that takes advantage of Intel's dual-core technology. Dual-core puts two brains on the same chip, which makes it easier to run multiple applications at the same time. But Desktrino may be outmoded before it is born. IBM, Sony and Toshiba took a surprise lead recently when they announced production of their Cell processor, which has eight brains to Desktrino...