Welcome!

Cognitive Computing Authors: Pat Romanski, Yeshim Deniz, Liz McMillan, Elizabeth White, Jason Bloomberg

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Microsoft Cloud, Containers Expo Blog, Cognitive Computing

@CloudExpo: Article

Intel CEO to Step Down in May

Otellini is only the fifth CEO Intel has had in its 45-year history and the first non-engineer to get the job

Intel CEO and president Paul Otellini, 62, has apparently tired of beating back the dragons that periodically threaten to devour the company and has decided to retire early.

Intel CEOs have all previously stepped down when they were 65, when retirement is mandatory, with their designated replacement clear. This is not the case this time.

The board, reportedly surprised by his decision, asked him to hang around for six months while it searches for his successor and starts an "orderly" transition. He will leave in May, his anniversary.

When Otellini got the job seven-and-a-half years ago, AMD was eating its lunch in servers, having run off 25% of the market, and Intel was facing massive antitrust suits on both side of the pond. Otellini was forced to restructure the company, change its chip architecture, beat back AMD with its own truncheon and settle the AMD-inspired antitrust complaints.

As a result Intel, a manufacturing marvel now worth $50 billion a year, is clearly master of the high end, but is currently threatened by the industry's shift to mobile, where ARM is king, and where clouds may be potentially filled with ARM-based microservers, which is why Intel stock has stagnated.

Qualcomm is now deemed the most valuable semiconductor company.

Intel's third-quarter profits fell 14% on revenues down 5.5% and, what with PCs being cannibalized by tablets and smartphones, higher operating expenses and the state of the macroeconomy, even in emerging countries, it is scaling back production significantly this quarter.

In a statement Otellini said, "It's time to move on and transfer Intel's helm to a new generation of leadership. I look forward to working with Andy [Bryant, Intel's chairman], the board and the management team during the six-month transition period, and to being available as an advisor to management after retiring as CEO."

The board, which claims it will look inside and outside the company for a replacement - something it has never done before - has isolated an internal selection pool of three people all just promoted executive VP: Renee James, head of Intel's software business; Brian Krzanich, COO and head of worldwide manufacturing; and Stacy Smith, CFO and director of corporate strategy. All of them are Intel lifers, including James, the only woman in the bunch.

Although it would be almost unthinkable for Intel to recruit on the outside, the board is dominated by independent directors, an inheritance from Otellini's predecessor Craig Barrett.

Otellini is only the fifth CEO Intel has had in its 45-year history and the first non-engineer to get the job. It is a complex place and trusts its own. Otellini, for instance, has been there for 40 years.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


IoT & Smart Cities Stories
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DSR is a supplier of project management, consultancy services and IT solutions that increase effectiveness of a company's operations in the production sector. The company combines in-depth knowledge of international companies with expert knowledge utilising IT tools that support manufacturing and distribution processes. DSR ensures optimization and integration of internal processes which is necessary for companies to grow rapidly. The rapid growth is possible thanks, to specialized services an...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Scala Hosting is trusted by 50 000 customers from 120 countries and hosting 700 000+ websites. The company has local presence in the United States and Europe and runs an internal R&D department which focuses on changing the status quo in the web hosting industry. Imagine every website owner running their online business on a fully managed cloud VPS platform at an affordable price that's very close to the price of shared hosting. The efforts of the R&D department in the last 3 years made that pos...