Pat Gelsinger stepping down as VMware CEO to replace Bob Swan at Intel – TechCrunch

In a move that could have widespread implications in the technological landscape, Intel announced VMware CEO Pat Gelinger replaces Interim CEO Bob Swan Intel On 15 February. The question is why he would quit his job to run a struggling chip giant.

The bottom line is that he has a long history with Intel, which before joining VMware in 2009 worked with some of the biggest names in chip industry lore. It must be a thrill for him to try to get back to his roots and jump into company.

“I joined Intel out of Lincoln Technical Institute when I was 18 years old. For the next 30 years of my tenure at Intel, I had the honor of following at the feet of Grove, Noyce and Moore,” Gelssinger wrote A blog post Announcing his new position.

Certainly Intel considered that the history and that Jelsinger’s deep executive experience should help as the company attempts to compete in an increasingly aggressive chip industry landscape. “Pat is a proven technology leader with a distinguished track record of innovation, talent development and Intel’s deep knowledge. Independent board chairman Intel Omar Isharaq said in a statement,” They value values ​​with the utmost focus on operational performance Based cultural leadership approach.

But Gelsinger is a bit giddy. As written by my colleague Danny Crickton Chip industry in its year-end review Last month, Intel lagged behind its rivals, and it’s going to be tough to play catch-up:

Intel has made several strategic blunders in the last two decades, which are completely missing in the smartphone revolution and also the custom silicon market which has come to prominence in recent years. It has also generally lagged behind in chip manufacturing, an area that once dominated and is now behind Taiwan-based TSMC, Crichton wrote.

Founder and lead analyst Patrick Moorehead of Moore Insights and Strategy agrees with the claim that Swann was dealt a bad hand, running to clean up the mess that has a years-old timeline. While Gellinger faces similar issues, Moorehead feels he can return to the company. “I’m not expecting any major strategic changes with Gelsinger, but I hope he will focus on the company’s engineering culture and bring it back to an execution culture” Moorehead told me.

The announcement comes last year with the backdrop of massive chip industry consolidation, with more than $ 100 billion in changes in four deals NVidia ARM Nabbing For $ 40 billion, $ 35 billion AMD-Xlink deal, Analog snagging maxim For $ 21 billion more Grab Marvell Inphi Not to mention, for only $ 10 billion Intel Dumps its Memory Unit at SK Hynix for $ 9 Billion.

For VMware, it is now up to them to find a new CEO. As Moorehead says, the obvious choice would be current COO Sanjay Poonan. An analyst for Constellation Research, Holger Mueller, says it would be up to Michael Dell to hand over the reins, but believes Gelssinger was stuck on Dell and would not get a wider role, so he quit.

“VMware has a deep bench, but it will be up to Michael Dell to get a CEO who can innovate on the software and keep VMware’s unique DNA strong in Dell’s portfolio, giving Dell the deep profits of this business Need a turnaround, ”he said.

The stock market seems like a move for Intel with stock up to 7.26%, but not so much for VMware, whose stock was close to the same amount at 7.72% that went into publication.