Mr. Krzanich has a strong plan that can change the game for Intel.
Intel Corp., the popular chipmaker’s chief executive officer has taken several incremental steps in the first two years that have helped the company to minimize the reliance on personal computers. But now Mr. Brian Krzanich is taking aggressive steps that are far beyond the limb.
Previously, Intel had been in the limelight since the company has coined a $16.7 billion deal through which they will acquire the programmable chip manufacturer Altera Corp. this is one of the most expensive deals taking place in the company’s history where many Wall Street an analyst consider that Intel has paid more than required.
During an interview, Mr. Krzanich expressed his surprise since the amount they’ve spent to buy Altera is extremely big. He states, “There is a bit of surrealness to it.”
Although Mr. Krzanich is extremely optimistic about this deal since it believes that Altera’s technology can help the company to promote its most lucrative business that is the chips used in corporate data centers. Moreover, it also has the potential to exploit the Internet of Things domain.
The company has made an offer to the stockholders of Altera where they will be getting $54 a share. This is almost 56 percent more the estimate Wall Street Journal made the first time Intel contacted Altera. This has resulted in several consolidations in the chip industry which also includes a bid worth $37 billion.
With the rampant popularity of smartphones and tablets, Intel has several major reasons to follow the pack. Earlier in the 1980’s PCs swiped over the world since they became a breakthrough technology back then. However now with the dynamics of the industry taking a complete 360 turn, the decision by Intel is extremely well thought. Previously the revenues obtained from PC domain fell down by 8 percent which caused the company to stumble.
Intel has been facing several rough patches that have disturbed the company’s existence. But with the new strategy implemented by Mr. Krzabich things are likely to change and get better. According to him smartphones are “not one of the areas that is likely to be a growth engine for the company.”
The vision of the CEO of Intel is extremely focused, long-term and futuristic. He knows what will benefit the firm in the long run thus he has been tailoring the company in a manner that caters to those needs. Mr. Krzanich has also taken prominent steps that will help the firm to attain stability once again.
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