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Intel's Otellini takes charge as CEO

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CIOL Bureau
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BANGALORE: Paul S. Otellini has formally taken over the reigns of the world's largest chip maker Intel Corporation. President and Chief Executive Officer, Otellini became the company's fifth CEO on May 18, 2005, succeeding Craig R. Barrett.

Otellini becomes the first non-technical CEO at Intel in its 36-year history.

Mitigating the mounting threat of AMD is one of Otellini's chief challenges, say analysts. Today, analysts agree AMD has superior dual-core and 64-bit architectures for servers than Intel, yet Intel's manufacturing capacity is superior to AMD's.

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Key to the success of Otellini's growth strategy will be his ability to steer the company into new business where it can command gross margins of 60 percent or more, as it does with its PC business, said Wall Street analyst Gwennap.

Otellini previously served as Intel's president and chief operating officer, positions he held since 2002, the same year he was elected to Intel's board of directors.

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Joining Intel in 1974, Otellini has held a number of other positions during his career. From 1998 to 2002, he was executive vice president and general manager of the Intel Architecture Group, responsible for the company's microprocessor and chipset businesses and strategies for desktop, mobile, and enterprise computing.



From 1992 to 1998, Otellini served as executive vice president of the Sales and Marketing Group.



Previously, he served as general manager of the Microprocessor Products Group, leading the introduction of the Pentium® microprocessor that followed in 1993.

He also managed Intel's business with IBM Corporation, served as general manager of the Peripheral Components Operation and the Folsom Microcomputer Division, where he was responsible for the company's chipset operations, and served as a technical assistant to then-Intel President Andrew S. Grove, now the immediate past-chairman of Intel.



Otellini received a bachelor's degree in economics from the University of San Francisco in 1972, and an MBA from the University of California , Berkeley in 1974.

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