Source: The New York Times
Andy Grove, the renowned chief executive of Intel, who died in March, coined a phrase beloved in Silicon Valley: “Only the paranoid survive.”
That sounds cool, if you like your capitalism fierce. That idea, however, turns out to have some significant downsides.
Intel is the world’s biggest semiconductor company because when Mr. Grove was in charge, it dominated the personal computer industry and was an important player in the associated business in computer servers.
Today, the PC market is shrinking, hurting Intel’s profits. The server-chip industry is still strong, thanks to the rise of cloud computing at companies like Facebook and Google. Cloud companies engineer server chips in ways that make very powerful and flexible systems used by millions of people.
But Intel missed joining a number of other markets that did not look like the PC business, particularly smartphones. It is scrambling for a place in sensors (or what is called the internet of things), wireless networking, autonomous vehicles and other hot areas, as computing spreads from traditional computers to nearly every machine. Read the rest of this entry »