Business Intel changing, say senior management

Business Intel changing, say senior management

2013/11/22

Intel CEO Brian Krzanich

Intel is changing said its top bosses at the new CEO’s first investor day.

Brian Krzanich, Intel CEO, said that Intel will be more responsive to customers’ needs which is being taken as a sign that they’ll fab chips for customers even if the chips compete with Intel’s proprietary products.

Intel president Renee James says that in future foundry deals will be taken “on a deal-by-deal basis not on an architecture-by-architecture basis . . . .even in areas where there may be some competition with businesses we’re in.”

In mobile, Intel is admitting embarrassment at its lack of success. “When we began our search for CEO a year ago, I was personally embarrassed that we had lost our way,” says Intel chairman Andy Bryant, saying that losing out to ARM in the mobile market “put us in a hole.”

Nonetheless Intel still won’t be putting its mobile processor Atom onto a leading edge process until 2015.

It was by insisting on putting its ARM-based X-Scale processors on trailing edge processes that doomed X-Scale to failure, but Intel still hasn’t learnt that lesson.

Maybe even a new CEO and an experienced chairman can’t override the entrenched interests inside Intel which insist that only PC and server chips go on the latest process.

Intel said that it would quadruple sales into tablets next year but will still only have flat revenues with 2013.

Intel’s bright spot for the next few years is an anticipated double digit annual growth in server processor revenues.

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