They MUST find the new CEO outside.
The inside culture is just too strong to allow any change.
The "we've always done it this way" arrogance syndrome will not allow the necessary changes if not driven very strongly by an outsider.
What to do is actually not so difficult. Intel has fabulous assets and can leverage them to win and become even stronger than they are now.
Those unique assets are :
- Process technology. They are years ahead of TSMC on 3D finfet.
- They "own" the cloud (ARM is nowhere in servers) and they can drive its
future more than they even realise themselves. In particular, if they were
a little smarter and humbler, they could drive the cyber-security resolution
much much harder and define a security de-facto standard that the world
(including the ARM camp) would have to follow.
- Manufacturing capacity. Qualcomm went through hard times this year
because of TSMC. This industry learned a hard lesson. Apple MUST be
looking at using Intel's fabs to secure its future. The industry is struggling
to ramp up 28nm when Intel is already ramping up 16nm (more or less
equivalent to everyone else 20nm). They have 1 to 1.5 process node
advantage and they have HUGE capacity. The PC decline is freeing up this
very advanced capacity. Intel must open up to fill its fabs.
In fact, the next CEO should have a lot of fun if he/she is smart enough !
crazy thought but what if Elop is brought in to secure flagging wintel and flagging Nokia share of mobile. It goes without question that noone can displace Intel from the PC world as we know it. even if Sylvia Summer runs it (remember Trident Microsystems..)Whether PC as we know it will continue to grow or not is the key question - If one agrees with this, then the new CEO needs to be one that can win mobility & the internet of things.
I think a manufacturing or tech honcho, internal or external, can only save Intel by restructuring it as foundry, where it can utilize fab tech strength and not worry so much about defining key products, which go from fad to commodity pretty quickly these days.
to conclude, intel is doomed.
deeper reason is it's board structure.
it's made up with some non-interested, non-professional, retirement fund managers.
you can keep on dreaming they can save intel.
if by some way intel could shake up its board by including me(chair), irwin jacobs, maybe also bill gates it might get a chance of revival...
Intel needs new technology to get itself out of the current mess. Remember when they were getting crushed by the japanese in the DRAM market, it was their processor technology that gave them a second chance.
A marketing or sales ceo cannot solve their issues. Intel has succeeded for so long because it is a very engineering focussed company all the way to the top. During Intel's heyday, all the ceos were engineers. Only lately have their ceos been non-ceos and they have started to slip - co-incidence?
I think Mitt Romney is looking for a job. :)
My guess is that Andy Bryant will step in as interrim CEO. (He's already Chairman of the Board and has been the corporate conscience since the Andy Grove days.)
Intel can't go back to an Engineering CEO; Otellini led it out of the wilderness from an engineering company to a marketing company. That was necessary when the PC industry went from a growth market to a replacement market.
They are already competitive with ARM in the cell phone market, they just didn't do it on 4G, so you won't see them make inroads against ARM until next year. Unfortunately, the stock price and stockholders (and thus the board) ran out of patience with Otellini.
The company needs to fix it's cycle time if it has any hope to survive. 6 years to plan, design and implement a processor is a non-starter in a competition with ARM. They highly vulverable and will lose massively in a war of manuever. (That's how they ended up on 3G instead of 4G for smartphones today. Took too long to get to market.)
Intel also needs to quit running the company on the basis of everything they learned with PCs over the last 3 decades. That's the innovator's dilemma in spades. An external leader that can shake up Intel's top management, clean house, reinforce Intel as a market company, and fix the cycle time by moving the company to 100% SoC (even for it's mainline x86 processors) is what's needed.
That's a hell of a job description and challenge. Any sane person would look askance at the challenge. There doesn't appear to be anyone within Intel that fits the bill (although it's possible that, like Harry Truman, there is someone that can grow into the job). There are some Intel alums that might work: Luis Machuca, Pat Gelsinger, Abhi Talwalkar, Anand Chandrasaker, Mike Fister -- but they also have baggage from their departures.
It will be an interesting search.
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