Certain analysts are claiming that Bob Swan is not the right person to lead Intel through these trying times. After a disappointing first quarter, with the Data Center segment seeing a decline in revenue for the first time in years, debates are being held as to whether Swan’s financial background makes him a suitable candidate for the top post. Past CEOs, Brian Krzanich, Andy Grove and Craig Barrett were all engineers while the present man in charge isn’t really qualified to make key technical decisions (as he himself has admitted).
However, if one looks closely at Krzanich’s reign, most of the problems Intel is currently facing, including the 14nm shortage, failure to migrate to a smaller process as well as the tap-out from the 5G modem market originated during his time as the CEO. Swan is just unfortunate that everything came tumbling down shortly after he took over.
At the recent investors call, the former CFO started his speech with, “We let you down”, but soon switched to a more optimistic tone claiming that Intel’s Data Center business is far from over and the company’s entry into other GPU-centric markets like AI and autonomous cars, along with 5G will be met with success. However, many analysts are still not satisfied and are voicing their concerns over Sawn’s ability to lead the company.
It seems like the company got behind during Krzanich’s reign and has not recovered under Swan, who, as everyone has pointed out, is not a silicon guy, but a bean counter.
Roger Kay, Endpoint Technologies Associates
Bob Swan may be a good executive. But there is no question that Intel needs a strong technical leader.
Marty Wolf
Joel Kulina, Head of Technology Trading, Wedbush
100% agree with that statement and that was undoubtedly a major concern when Swan was announced. What Intel needed, and needs, at the top is someone who knows how to execute and someone with a deep technology/architectural background.
However, not all of them are so critical of Bob Swan, and some think that he might just be the CEO that Intel needs right now:
I don’t see that as a big issue for them. I actually think that it could be very good for them, as it will allow them to think about what the market needs and the technology that they can deliver for any given market – rather than over-rotating on the technology angle.
Crawford Del Pete, IDC President
The key will be if Swan can get the right kind of technical advice out of his staff to make core and important decisions. I have talked with many senior executives at Intel, including engineers, and they like and want Swan to succeed
Patrick Moorhead, analyst, Moor Insights and Strategy