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Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

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41–50 of 331 posts

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#41
post #4

Really don’t see how this changes things inside Intel. Pat Gelsinger is not new to Intel at all. This is just playing musical chairs.

Pat was fairly effective at VMW. The fact that he himself is not new to Intel is probably beneficial for the company, but there's a pretty substantial difference between being CTO and actually steering the ship. I'm not comparing Gelsinger to Steve Jobs in a general sense, but Jobs wasn't new to Apple when he returned -- and yet Jobs' return to leadership was transformative for the company.

Only in the incestuous world of CEOs does being "fairly effective" at your last job grant you the keys to one of the biggest companies in the world.

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#42
post #28

Pretty damming to Bob Swan when a $200B market cap company jumps +8% on news that you are stepping down.

Pretty sure he gives zero fucks about this considering the juiciness of his golden parachute.

The only gig where you get rewarded handsomely even if you fail.

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#43

To me, that move makes a lot of sense. But judging from the other comments, I'm the only one with that assessment. I'm my opinion, the secret sauce that makes Intel dominate certain industries is software. And it has been for some years already. If you need really fast mathematical number crunching, e.g. high frequency trading or realtime audio filtering, then you need MKL, the Intel math kernel library. If you want…

> If you want to further reduce latency with parallelism, you need TBB, the Intel thread building blocks.

That's not how latency works and there is nothing too special about Intel's TBB library. It is a big bloated group of libraries that doesn't actually contain anything irreplaceable. Don't be fooled by marketing or people that haven't looked under the hood. It should also work on amd cpus.

> Raytracing? Intel embree.

Embree is a cool convenience, but also doesn't marry anyone to intel cpus.

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#44

The trillion dollar question is: Is the board leaning into the usual MBA moves 101 and turn Intel into a "services company" gradually going fabless and milking those sweet patents OR will they put the work boots on and start building an actual tech company with the people who actually can save them on the payroll? cutting on the usual contractors meat grinder and invite the vast armies of middle-management and market…

Pat Gelsinger fits the second option better, he has an actual engineering background and worked on some of the most important Intel products early in his career.

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#45

Earlier quoted context omitted.

To me this description sounds like a specialist high performance computing company rather than a consumer technology company. That may be a perfectly reasonable market to be in, but is that type of company worth $200bn? I'm not sure. Roughly 40% of their revenue is consumer chips where, apart from some games optimisation, they are no longer standing out from the crowd, and the leader is arguably Apple, with AMD doing…

I agree with your market breakdown, but surely not with your assessment. In the consumer segment, you have regular people trying to make vacation videos with software like Adobe Premiere and Adobe Media Encoder, or Magix. Nvenc quality is bad. AMD is horribly slow. The only fast high quality encode is with Intel's dedicated CPU instructions, which both apps heavily promote to their users. And the 30% that you mention…

> And the 30% that you mention that run VMs... Wouldn't they be pretty happy if Intel added dedicated CPU instructions to make VMware better?

They have this today. What would make them happier is cutting power utilization by half or more, which is looking quite possible with non-Intel Silicon.

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#47

Earlier quoted context omitted.

To me this description sounds like a specialist high performance computing company rather than a consumer technology company. That may be a perfectly reasonable market to be in, but is that type of company worth $200bn? I'm not sure. Roughly 40% of their revenue is consumer chips where, apart from some games optimisation, they are no longer standing out from the crowd, and the leader is arguably Apple, with AMD doing…

I agree with your market breakdown, but surely not with your assessment. In the consumer segment, you have regular people trying to make vacation videos with software like Adobe Premiere and Adobe Media Encoder, or Magix. Nvenc quality is bad. AMD is horribly slow. The only fast high quality encode is with Intel's dedicated CPU instructions, which both apps heavily promote to their users. And the 30% that you mention…

> AMD is horribly slow. The only fast high quality encode is with Intel's dedicated CPU instructions,

You might need a source for that.

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#48

To me, that move makes a lot of sense. But judging from the other comments, I'm the only one with that assessment. I'm my opinion, the secret sauce that makes Intel dominate certain industries is software. And it has been for some years already. If you need really fast mathematical number crunching, e.g. high frequency trading or realtime audio filtering, then you need MKL, the Intel math kernel library. If you want…

To me this description sounds like a specialist high performance computing company rather than a consumer technology company. That may be a perfectly reasonable market to be in, but is that type of company worth $200bn? I'm not sure. Roughly 40% of their revenue is consumer chips where, apart from some games optimisation, they are no longer standing out from the crowd, and the leader is arguably Apple, with AMD doing…

>Roughly 40% of their revenue is consumer chips where, apart from some games optimisation, they are no longer standing out from the crowd, and the leader is arguably Apple, with AMD doing well.

You lost me at Apple. Apple owns around 15% of the PC market space and almost the entirety of that is Intel-based systems. Outside of HN, nobody cares about the M1 chip, it isn't a selling point to my mom or her friends. If someone at the Apple store recommends it they might buy it instead of an intel-based system but it definitely isn't something they're seeking out.

The only threat Intel has right now in the consumer space is AMD, and it's a very real threat. AMD won both Sony and Microsoft console designs, and the mobile Ryzen 5000 chips released at CES look to have enough OEM design wins to put a serious hurt on Intel in 2021.

Even if Apple goes 100% M1, there's the other 85% of the market that Intel is likely far more concerned about.

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#49
post #13

The CEO of a semiconductor company needs to have an engineering background, IMO. The tech is too complex and too important to the business to have a CEO who doesn't understand the nuances. Wish Pat all the success at Intel. We need Intel to do better.

I agree, that is why Lisa Su runs AMD so well

Re: Intel CEO Bob Swan to step down, VMware CEO Pat Gelsinger to replace him

#50

This spoils any optimism I may have had for Intel. Reading that this came due to a search for "Strategic alternatives" is damning. Intel is like Boeing. They make one thing and they used to make it very well, silicon. If Boeing told you they were looking into alternatives to making planes would you be optimistic? It feels like they're throwing in the towel on being the leader, giving up on trying to catch up process…

TFA doesn't say it came due to a search for "strategic alternatives."

It says "Dan Loeb's Third Point hedge fund in December urged Intel's board to explore "strategic alternatives."

That is typical hedge fund pressure attempting to squeeze (short term) money out of their investment. The article has two more paragraphs consisting of the hedge fund's cheap shot quotes.

It isn't clear Intel's board succumbed to the hedge fund pressure. Changing the CEO from a finance-oriented CEO to a technically-oriented CEO (Gelsinger) is taking Intel back to its roots rather than "exploring strategic alternatives." Intel was founded and lead for many years by technically-oriented CEOs.

Ref: https://en.wikipedia.org/wiki/Intel#Leadership_and_corporate...

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