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| President & Chief Executive Officer Intel's |
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Paul
Otellini, Intel's President and Chief Executive
Officer was earlier Santa Clara company's
President and Chief Operating Officer.
Otellini is the fifth Chief Executive in
Intel's 36-year history. But perhaps more
importantly, the San Francisco native becomes
Intel's first top dog who is not an engineer.
Although he has been with the company for
31 years, his training is largely in sales
and marketing. According to analysts, now
that Intel has matured, it is turning to
sales and marketing as a key factor in
sustaining growth. That's why someone like
Otellini makes sense for the job. Otellini
is now at the helm of a company that recorded
$34 billion in revenue last year. Largely
because of its dominance in the PC microprocessor
market, Intel remained profitable even
when the dot-com bubble burst and many
technology firms were flooded with red
ink. However, Intel has reached a crossroads
as it tries to look beyond the PC market
for new revenue opportunities, such as
products for the digital home and communications
devices like cell phones. Intel has already
spent billions of dollars developing Itanium,
a microprocessor for high-end server computers.
The chipmaker also poured billions more
into acquisitions to enter the communications
business. So far, neither business has
been an overwhelming success. One hallmark
of Intel has been smooth transition of
power. No CEO has been fired or unceremoniously
removed. Otellini became the heir apparent
in 2002, when he was promoted from Executive
Vice President in charge of the microprocessor
division to President and Chief Operating
Officer. Otellini did not waste any time
to start making significant changes within
Intel's executive ranks. In January, Intel
announced a major reorganization of its
senior management to reflect its new emphasis
on markets rather than specific products.
Otellini is the chief architect behind
Intel's platforms approach to making and
selling chips for different devices such
as desktop PCs, notebook PCs and cell
phones. It is a classic business approach
from a sales and marketing point of view
rather than from an engineering perspective.
But with the maturing PC market, that movement
is unavoidable. The growth for Intel,
it is believed, will come in new initiatives
in networking, in telephony and the company
is clearly in the midst of a transition
challenge. A challenge that can be easily
met by a determined person like Otellini. |
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