Inside Intel, this year was about change, in management and staff.

The best of times: It was a boom market. The icing came from Centrino wireless laptops, 915 (Grandsdale) desktops, and Itanium servers. The Pentium D launched the dual-core family, late 2005. The Centrino Duo mobile platform followed.

Yes, Intel lost two points' share to AMD-based servers and desktops (AMD persuaded DGS&D to drop the specific 'Pentium' in PC tenders). But it held on to 83% share. Intel also added layers to its earlier GID/Premier channel structure. Now, it's also added sub-distributors.

The worst of times: HR trouble brewed, as Intel clamped down on doubtful LTA, medical and other claims. Foreign auditors grilled employees. Many were cautioned, terminated, or left. Pathbreaking zero-tolerance, but morale was hit. And the much-delayed 'Whitefield' project was killed. The low-power four-core Xeon would have been the first India-made processor. Ketan Sampat exited abruptly to Intel USA oblivion, replaced by Frank Jones. Now, capping many changes, Siva Ramamurthy replaces Amar Babu; John McClure (“two-in-a-box”) stays.

The empire strikes back: Intel has strong dual-core launches ahead, including the IA-64 Montecito. It can charge premiums while slashing prices on older chips, to recoup share, and push inventory. And last December, chairman Craig Barrett announced a $1 bn India spend over five years in R&D, marketing, and education. But Intel insiders worry. There are layoffs ahead.

The paranoid survive. But stabilizing R&D and sales will be key for Intel. This growth market can help revive global revenues and stock.

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