His plan can be boiled down to 5 major areas:
- Cloud and data centres: Krzanich is fully aware of the shift to the cloud and the fact that Intel owns the market for chips that power cloud services (data centres). Data center chips already drive 30% of Intel’s revenue and is the second most profitable unit. With Intel’s PC business shrinking, Intel’s reliance on its data center business will only grow.
- Connected things: Intel has been investing heavily in the Internet of Things space lately, the market for devices that connect to each other and share data in real-time. That includes things as small as a smartwatch or a drone to the market for autonomous cars. “The biggest opportunity in the Internet of Things is that it encompasses just about everything in our lives today — it’s ubiquitous,” Krzanich writes.
- Memory and programmable solutions: Another growth area for Intel has been its memory chips that can be used in data centres and various cloud services. It’s also been investing in special types of programmable chips like FPGAs lately, which has led to the $16 billion acquisition of Altera last year, Intel’s biggest deal ever.
- Connectivity: Intel famously missed the boat to smartphones and mobile, and its mobile business is tiny compared to other competitors. Krzanich doesn’t want to repeat the same mistake and vows to play a big role in the move to 5G connectivity. “Connectivity is fundamental to every one of the cloud-to-thing segments we will drive,” he writes.
- Moore’s Law: Intel’s chip innovation is predicated on what’s called the Moore’s Law, which basically stipulates that transistor size shrink in half every two years. Intel recently extended the law to every 2.5 years, but Krzanich has vowed to invest in the area to bring it back to 2 years, although he didn’t specify the timeframe in the blog post.
Intel’s in the middle of a big revamp as it hopes to overcome a years-long slump in PC sales. Krzanich has shifted the company’s focus to data centres and Internet of Things, and overhauled a number key executive positions to bring in outside help.
One of them is Venkata “Murthy” Renduchintala, a former Qualcomm exec, who just recently joined the company as the #2 guy. In fact, Krzanich put him in charge of almost half of the company’s business, and said during the earnings call that Renduchintala will primarily run the restructuring process.
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