Is he being pushed out because his Architecture group did not recognize the impending ARM Tsunami even after the first iPhone came out and failed to put up a credible alternative viz. a low - power SoC version of x86 able to run the same micro code and all the legacy software ?
This was clearly coming from the get go. With Perlmutter gone, downgrading of the Intel Israel is not out of the question. Perlmutter himself with his vast experience and knowledge of the industry should not lack in opportunities - perhaps its best for him. Ironically, his deep knowledge of high-end computing would be of high interest to ARM, though I doubt he will end up there. As to the wisdom of pushing him out, the results will be known in 3-5 years, or earlier if Krzanich gambit of reclaiming the spot in low-power cell/tablet space fails.
Intel is at the crossroad to change. No one thought that it will not be AMD but Intel's customers who will be responsible for the downfall. The good thing about Intel is still its leadership position in technology.
Otellini the Economist ( isn't that what they call Psychics w/ a College Degree ) & Marketing Guy was blind-sided by creeping technology change ( SoC ) that became a Tsunami. He did not have the technical training to marshall the troops and had to delegate. Dadi's Architecture Group kept spending far too much time on powerful processors. Even the latest low - power transistor technologies ( 22 nm FinFET ) were being first used for Heavy Iron CPUs rather than low-power RISC processors that could have competed against ARM. In the last 5 years ( since Smart Phones became hot ) Intel was pushing the wrong Boulder up the Hill. They thought that the x86 monopoly will last forever. Its Intel uProcessor eats IBM's Mainframe lunch all over again, only this time ... The fault for appointing non Engr. Otellini and Intel's subsequent inability to switch gears must go to his predecessor Dr. Craig B. What Intel really needs now is not a Process guy ( though he gets the credit for not bungling 22 nm development ) but an Architecture guy who will use Intel's 2 year process lead over TSMC but will make the troops come up with x86 designs that work from Portables to Super Computers.
I was somewhat surprised at the news at first. After ruminating it is now becoming a little clearer of what Intel is to become.
The elevation of Rene James is one indication of the importance of software development to accompany an increasingly complex semiconductor product delivery - vis a vis the rapidly expanding SDN requirement.
I believe Perlmutter was caught in between supporting the Ottelini party line, keeping the fab humming along and failing to partition his group to address the gathering storm of the ARM representation.
I agree with a previous posting that Dadi would do extremely well heading up a new ARM initiative - he probably knows more about them than anyone else at this point...,