Former AMD CEO: Intel needs to 'divvy up' to succeed


— 10:56 AM on March 22, 2013

Intel CEO Paul Otellini is retiring in May, and Intel has yet to name a successor. Whoever that successor turns out to be, though, former AMD CEO Hector Ruiz has a few words of advice: "Divvy up the company."

Writing on BusinessWeek's Management Blog, Ruiz says Intel is dominated by the PC market and "needs to get out of its own way" to succeed in the mobile space. He likens Intel to Boeing, which got sidelined by Brazil's Embraer in the regional travel market. Ruiz goes on to add:

Intel can't let its powerful PC business squash innovation that could help it establish leadership in mobile technology; soon its competitors in mobile may get strong enough to eat away at its PC market share, especially with the advent of new three-dimensional interconnect technology for microprocessors—where no one yet has the competitive edge.

The way Ruiz sees it, Intel needs to become a "portfolio company" with three "autonomous business units": one unit focused on servers, another centered on the PC, and a third targeting the fast-growing mobile market. All three businesses could "benefit enormously from the parent's superior manufacturing capability," and the added flexibility would be a boon to Intel's mobile efforts.

Ruiz recommends that the company "revisit and, if necessary, repeat the process in three to five years" in order to stay nimble.

   
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