Windows Weekly 910: Intel Outside - Detailed Summary

Release Date: December 4, 2024

In Episode 910 of Windows Weekly hosted by Leo Laporte, Paul Thurrott, and Richard Campbell, the trio delves deep into the tumultuous developments at Intel, exploring the ramifications of its leadership changes, strategic missteps, and the broader implications for the tech industry.

1. Intel’s Leadership Shake-Up and Strategic Struggles

The episode opens with Paul Thurrott announcing major news: Intel’s CEO, Pat Gelsinger, has been placed in a no-win situation by the board of directors, leading him to announce his retirement. Leo Laporte reflects on Gelsinger's tenure, highlighting his engineering prowess and strategic vision for Intel's integration into fabrication and foundry services.

Paul Thurrott [00:02:00]: "Apparently, on Sunday, the Intel board of directors gave Pat Gelsinger a no-win situation. You could retire or we'll just fire you."

Richard Campbell concurs, emphasizing the absence of a designated replacement for Gelsinger, which adds uncertainty to Intel's future.

Richard Campbell [00:03:05]: "There isn’t one right now."

2. Comparison with Industry Peers: AMD and TSMC

The discussion shifts to comparing Intel’s struggles with those of AMD and TSMC. Paul critiques Intel’s long-standing issues with producing efficient, low-power CPUs, which led to Apple’s transition to ARM architectures—a strategic advantage AMD capitalized on.

Paul Thurrott [00:04:55]: "The big intel crime… ignoring repeated pleas from Microsoft mostly to create more efficient CPUs for computers."

Leo adds that while Intel’s vertical integration was historically successful, it faltered without continuous innovation.

Leo Laporte [00:02:52]: "But I guess it wasn't moving fast enough for them."

3. Potential Dismantling of Intel

The hosts speculate on Intel’s possible breakup, comparing it to historical corporate restructurings like Microsoft. Richard posits two potential outcomes: complete dismantling or maintaining the Intel brand while spinning off its foundry business.

Richard Campbell [00:03:52]: "There are really only two outcomes here for Intel now. The first outcome, they get dismantled..."

Paul underscores the challenges Intel faces if it opts to split, noting the complexities of separating integrated services.

Paul Thurrott [00:13:36]: "The foundry business, assuming they can get it right, is the future of this thing."

4. Impact on Microsoft and the Windows Ecosystem

The conversation explores how Intel’s uncertainties affect Microsoft, particularly concerning the Windows ecosystem’s dependency on Intel’s hardware. Paul draws parallels to Microsoft's own strategic shifts, such as moving towards cloud services when facing stagnation in primary markets.

Paul Thurrott [00:06:02]: "The parallels between Microsoft and Intel are super strong."

Leo highlights Microsoft’s aggressive marketing towards ARM-based Windows devices, suggesting a shift away from Intel’s x86 architecture.

Leo Laporte [00:26:58]: "They've been talking about how much it costs to switch to extreme ultraviolet..."

5. Windows Insider Program and Store Updates

Moving beyond Intel, Paul and Richard discuss recent updates to the Windows Insider Program and the Microsoft Store. Paul announces the introduction of Win32 app updating through the Microsoft Store, a significant enhancement aimed at streamlining software deployment.

Paul Thurrott [00:38:17]: "Microsoft has loosened the rules of the Microsoft Store inside of Windows so much that you can pretty much deploy anything through it."

Richard adds historical context, recalling the early struggles of the Windows Store with low-quality apps and continuous developer pushback.

Richard Campbell [00:39:37]: "They try. It's very similar to the Intel story."

6. Copilot and ARM Integration in Windows

A significant portion of the episode is dedicated to discussing Microsoft’s Copilot integration and the ongoing transition to ARM-based Windows devices. Leo mentions substantial advertising efforts promoting ARM-based PCs, despite existing performance and compatibility challenges.

Leo Laporte [00:26:58]: "It's pretty clear… Microsoft sees its future with ARM."

Paul expresses skepticism about widespread adoption due to software compatibility issues, especially among enterprise users who rely on legacy applications.

Paul Thurrott [00:28:06]: "Most of the people we're going to talk about this in my tip... are technical and set in their ways."

7. Patch Tuesday and Upcoming Windows Updates

The hosts briefly touch upon the anticipation surrounding the upcoming Patch Tuesday and the potential release of the 24H2 update for Windows. Paul warns of possible reliability issues based on recent experiences post-update.

Paul Thurrott [00:46:47]: "There's been no indication whatsoever of them making any meaningful progress, unfortunately."

Richard categorizes the 24H2 update as a service pack in disguise, hinting at substantial underlying changes that may impact system stability.

Richard Campbell [00:47:45]: "It's a service pack. 0os in disguise."

8. Overall State of the PC Market and Intel’s Position

Concluding the technical discussions, the trio examines the broader PC market. Paul notes stagnant PC sales, attributing it to a lack of compelling upgrades and the anticipation of Windows 10’s end of support in late 2025.

Paul Thurrott [00:66:01]: "PC sales have been flat. We're still waiting for the upgrade bump."

Richard echoes the sentiment, highlighting financial constraints and delayed hardware upgrades as factors contributing to sluggish PC market growth.

Richard Campbell [00:67:35]: "Financial concerns are pushing extended warranties and hardware hold-offs."

Notable Quotes with Timestamps

• Paul Thurrott [00:04:55]: "The big intel crime… ignoring repeated pleas from Microsoft mostly to create more efficient CPUs for computers..."

• Richard Campbell [00:03:05]: "There isn’t one right now."

• Leo Laporte [00:26:58]: "They've been talking about how much it costs to switch to extreme ultraviolet..."

• Richard Campbell [00:39:37]: "They try. It's very similar to the Intel story."

• Paul Thurrott [00:66:01]: "PC sales have been flat. We're still waiting for the upgrade bump."

Conclusion

Episode 910 of Windows Weekly offers a comprehensive analysis of Intel's precarious position amidst leadership turmoil and strategic missteps. The discussion underscores the intertwined fate of Intel and Microsoft's ecosystems, the challenges of transitioning to ARM architectures, and the broader stagnation in the PC market. As Intel teeters on the brink of potential dismantling, the tech community watches closely, anticipating the ripple effects across software, hardware, and enterprise infrastructures.

Listeners gain valuable insights into the complexities of large-scale corporate strategies, the importance of continuous innovation, and the critical role of leadership in navigating tech giants through turbulent times.

Note: Advertisements, intros, outros, and non-content segments from the provided transcript have been omitted to focus solely on the informative content of the podcast episode.