Intel Splits Communications
Business
(07/14/99, 8:07 p.m. ET)
By Mark LaPedus, Electronic Buyers' News
Hoping to lessen the potential conflicts
between its growing
communications-equipment and
component businesses, Intel said it has split
these product segments into two separate
organizations.
Intel has named John Miner, formerly general manager
of the company's Enterprise Server Group, as vice
president and general manager of its new
Communications Products Group.
Miner will be in charge of Intel's LAN/WAN-hardware
lines,Internet-enabled server products, as well as
computer-telephony hardware specialist Dialogic, which
Intel recently acquired. Miner reports to Craig Barrett,
Intel's president and CEO.
Miner assumes the company's LAN/WAN-hardware
duties from Mark Christensen, vice president and
general manager of Intel's Network Communications
Group. Previously, NCG was responsible for
developing and selling its Intel-branded hubs, switches,
remote-access equipment, and related items.
Christensen will continue to hold the same title for
NCG, but he will now become solely responsible for
Intel's communications-chip lines. Christensen continues
to report to Barrett.
In his new role, Christensen will be in charge of Intel's
internally developed communications-chip products,
such as LAN-chip controller and network-processors.
He is also responsible for directing the company's
recent acquisitions of LAN-chip specialist Level One
Communications and network-processor start-up
Softcom Microsystems. Intel acquired Level One last
spring for $2.2 billion, while it purchased Softcom
earlier this month.
The reorganization is intended to split Intel's growing
communications-equipment and components sectors
into two separate organizations, thereby lessening fears
that the company is competing against its OEM
customers in LAN/WAN-chip segments.
For years, Intel has been selling hubs, remote-access
equipment, switches, and other types of products. With
its recent acquisitions of Level One and Softcom,
however, Intel is positioning itself as a major force in the
LAN/WAN-chip segments.
"The addition of the Communications Products Group
segments our network infrastructure activities along
systems and components, bringing greater alignment to
our silicon capabilities, platform initiatives, and
acquisitions," Barrett said in a statement.
Sean Lavey, an analyst with International Data Corp., in
Mountain View, Calif., applauded the move. "Logically,
it makes sense," he said.
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