Intel Restructures, Budgets $100 Million To Win E-Businesses

Intel is restructuring to streamline its operations and to betterattack the E-business market. It's combining its Intel Architecture Business and Microprocessor Products groups to form the Intel Architecture Group. The chipmaker says it will set aside $100 million to fuel the new group's campaign to win online startup customers.

Intel acknowledged Thursday that it needed to improve communication between the microprocessor and architecture groups. The microprocessor group oversaw late-stage technology development and production for processors such as Pentium and Itanium. The architecture group managed the marketing of those products. Executive VP Paul Otellini and senior VP Albert Yu will head the Intel Architecture Group.

"This is the best way to have all of our units talking to each other," says an Intel spokesman. The move is not related to Intel's struggle with shortages and product delays, according to the company.

As part of the reorganization, Intel has created the position of chief technology officer, which will be held by Pat Gelsinger, former VP of the desktop-products group (part of Intel Architecture Group). Gelsinger will oversee and coordinate all divisions within Intel Labs, which does early-stage research on processor design, chipsets, and system architectures.