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Monday, 04 April 2005
A New Brain For Intel
TIME

The last thing you would expect to hear Paul Otellini praising is an Apple product. Otellini, 54, is the incoming CEO at Intel, the chipmaker that along with Microsoft has ruled the PC world for much of the past 20 years and has pushed the Macintosh platform to the fringes of market share. Yet when Otellini outlines his company's new strategy, the first product

he mentions is Steve Jobs' best-selling MP3 player. "What is the iPod?" Otellini asks, and his answer sounds strange from the mouth of a man with the well-manicured looks of a successful accountant. "It's my music machine, man. That's what you want. This," and here he gestures to a laptop across the conference room at Intel headquarters, "is my content machine. That [desktop] PC is my productivity machine. You have to start by thinking about the things people want to do with computers and work backward."

That may sound like a simple enough statement, but it represents a profound revolution in the way the Santa Clara, Calif., chipmaker--long the powerhouse of Silicon Valley--does business. Forty years ago this April, Intel co-founder Gordon Moore predicted that given advances in transistor miniaturization, computer processors should double in speed every 18 months. Not only did Moore's law become the most trustworthy truism in technology, it was also the rock on which all Intel marketing was founded. Why did you need a PC with an Intel Pentium II processor? Because it was four times as fast as your poor outmoded Pentium I. And so the product cycle continued.

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