Word: otellini
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...last thing you would expect to hear Paul Otellini praising is an Apple product. Otellini, 54, is the incoming CEO at Intel, the chipmaker that along with Microsoft has ruled the PC world for much of the past 20 years and has pushed the Macintosh platform to the fringes of market share. Yet when Otellini outlines his company's new strategy, the first product
...mentions is Steve Jobs' best-selling MP3 player. "What is the iPod?" Otellini asks, and his answer sounds strange from the mouth of a man with the well-manicured looks of a successful accountant. "It's my music machine, man. That's what you want. This," and here he gestures to a laptop across the conference room at Intel headquarters, "is my content machine. That [desktop] PC is my productivity machine. You have to start by thinking about the things people want to do with computers and work backward...
...Otellini, who will become CEO in May, that reality has the makings of a crisis. And in fact the Pentium 4 issue was only one of a whole host of mishaps and missteps that Intel found itself confronted with in 2004. The LCOS (liquid crystal on silicon) chip for high-definition TVs, a pet project of Otellini's that (as president and COO) he had announced with much fanfare in January 2004, was abandoned in November when the cost of production became prohibitive. Waggish engineers made a disco ball out of defunct LCOS chips for Intel's holiday party...
...fact is, Silicon Valley's top chipmaker would be hard-pressed to find a better-qualified candidate. Otellini has been with Intel since 1974 and once served as technical assistant to the legendary Andy Grove, Barrett's predecessor. Last year, as Intel faced cutthroat competition from rival Advanced Micro Devices in a declining PC market, Otellini sat down with his engineering team, which wanted to make a new microprocessor for laptops. His big idea: since laptop owners add wi-fi cards to their machines so that they can surf the Internet wirelessly at any hot spot, why not build wireless...
...Otellini offers an unusual perspective for his industry: that good marketing makes all the difference. Pushing a distinctive product like Centrino or Pentium, Intel's previous success story, is almost as important to him as the chips themselves. "Our whole job," he says, "is to create demand." He has done just that--including for himself. --By Chris Taylor