The New Face Of The Intel Channel

Intel is exhorting its partners to focus more on common building
blocks for mobile PC components. And to get them to make this transition, the
company is revamping its entire channel program. So get ready to find the
familiar GIDs and IPPs and ITRs replaced by Premium, Associate and Registered
partners.

Change is the only constant in life, it is said. And Intel
believes in this philosophy strongly. This is why, the company has decided to
revamp its entire channel program from scratch. This will include doing away
with the existing channel categories and introducing newer ones, which will fit
the market needs and expectations.

SOPHIA CHEW The new classification will do away with the emphasis on unit selling and will focus more of the solutions provided by partners

The reason Intel is propelling this initiative is to promote
interchangeable mobile PC components through the use of common building blocks
or CBB. Bill Siu, VP and GM, Channels Platform Group, in his keynote address at
the Intel Solutions Summit held recently in Sanya, China, exhorted the benefits
of increased usage of CBBs, which will be of special importance in the laptop
market, currently dominated by branded names.

Said Siu, "People are going for branded laptops because
at this moment there are very limited options that they have. A laptop battery
should last a lifetime, but continued usage means that the battery gives in
after two years and then you have to change it. With non-branded products
customers have a problem about finding products that were used initially because
unlike desktops, there are no ingredient or component standards for mobile PCs.
This often leads to uncompetitive pricing and higher support costs."

Change is on its way

Throwing light on how the CBBs will change the situation Siu added,
"Intel's focus on CBB will help in achieving standardization at the
component level. The idea behind CBB is to allow partners to provide products,
which are easily interchangeable and upgradeable."

The CBB initiative kicked off in 2004 with hard disk drive,
optical disk drive and LCD panel. The program aimed at establishing consistency
in components used in notebooks, regardless of who manufactures them, so that
assembly cost and time-to-market are reduced.

This year, Intel added four more components to this list
taking the count up to seven. The new entrants included battery pack, power
adaptor, keyboard and customizable notebook panel. The CBB will thus help
partners build customizable notebooks, wherein the components are compatible
across a wide spectrum.

PAT ON THE BACK: Intel felicitated its partners for the promising and consistent performance at the summit

With the first batch of notebooks adhering to all seven
specifications all set to hit the market, Siu explained, "The top three
notebook ODMs in Taiwan-Asus, Compal and Quanta Computer-are supporting our
CBB initiative. These design models can further be adopted and manufactured by
OEMs such as Hewlett-Packard and Dell Computer."

Talking about the way forward for Intel this year Siu
stressed that that Intel's mantra is to treat the channel as a strategic
asset. "This year, we will enable our channel to simplify complicated
products to the highest running SKU. Secondly, we also plan to provide partners
with an SMB stack wherein a partner can not only meet the hardware solutions
requirement of an SMB customer, but also provide end-to-end solutions to meet
his complete IT requirements. We have already identified various open source
software solutions, which can be integrated and verified under the Verified by
Intel (VBI) program."

That apart, partners will be provided a pre-launch sales kit
so that they are prepared before the product is launched in the market. Intel is
also looking at introducing the Community PC to all its channel, globally.
"The objective is to find out uses for it in other countries apart from
India where we have already introduced the Community PC," Siu added.

Advantages of CBB

Intel is working towards evolving a holistic eco-system in the channel space
where partners will have CBBs, a verification process for their solutions,
enhanced customer support and distribution and logistic support. The whole move
is aimed at enabling the partners to offer differentiated and customized
notebook solutions.

The CBB program becomes increasingly important in the face of
the booming mobile segment. With the increased demand for laptops, it promises
to provide an impetus to the non-branded market, which has been struggling to
get a toehold in a market dominated by big brand names.

Chetan Shah of Mumbai-based Xpress Computers, who was invited
on the stage to share his experience about CBB said, "The potential is huge
as the SOHO and SMB market size has increased. Additionally, the customer can
now enjoy an array of interchangeable parts, lower cost on spare parts and
increased choice."

So how exactly does the program benefit partners and solution
providers? CBB provides platform manufacturers the choice of sourcing components
from multiple suppliers with CBB-compliant solutions. This means that the
manufacturing process does not suffer in case of a shortage of materials from
one supplier. The manufacturer can simply source the required stuff from someone
else without having to redesign the product composition.

BILL SIU: Top three notebook ODMs in Taiwan - Asus, Compal and Quanta Computer - are supporting the CBB initiative and these design models can further be adopted and manufactured by OEMs like HP and Dell	MARCUS LOW: CBBs will help reduce downtime and standardization will help partners reduce inventory and improve the overall quality of service

It also gives manufacturers the cost-reduction advantages
when configuring to order by selecting a set of ingredients plus there is little
or no start-up cost associated with the CBB program. This is because most
platform manufacturers already are designing to the common third-party
specifications on which the CBB-compliance requirements are based.

New partner program

In keeping with the new CBB program, Sophia Chew, VP and GM - Sales and
Marketing Group, Reseller Channel Operation, Intel announced that come July 1,
2006 Intel will have a new partner program in place. The initiative of the new
partner classification is seen as an off-shot of Intel's focus on CBB, which
will help in achieving standardization at the component level.

The new classification will do away with the emphasis on unit
selling and will focus more on the solutions provided by partners. In the new
scheme of things Intel has decided to do away with the existing ranks of GID,
IPP, ITR and in its place will come Premium, Associate and Registered partners.

Explaining the move Chew said, "We are looking away from
the number of units that a partner sells. Sales will no longer be a criterion,
as we at Intel believe that for the market to evolve partners need to look
beyond sales and towards solutions. So the new program will emphasize on the
kind of solution that the partner is providing, the level of complexity it has
and its ultimate impact."

Intel has already communicated certain pre-requisites to its
partners that will help it in further classification. The final list will be
unveiled on July 1. "Also, from now on training will be an integral part of
our partner program," Chew added.

Commenting on the new partner program Intel's director-APAC
Reseller Channel Operation, Marcus Low said, "With CBB we will enable
channel partners to move into the mobile group. CBBs will help reduce downtime
and make mobile PC ownership a comfortable experience for the customer.
Standardization will help partners reduce inventory and improve the overall
quality of service."

Selection criteria

The main criterion, according to Intel, for judging partners under the new
scheme will be revenue, technical strength, marketing capability, training and
financial strength. Based on the current buying behavior in the APAC region, the
company is expecting to register about 400 Premier, 10,000 Associate and 34,000
Registered partners. "But the final figures we will only come to know once
the program is unveiled. We are now looking to focus on the commitment levels
that partners show towards evolving solutions than just selling," Low
added.

Anand Chandrasekher, Senior VP and GM, Sales and Marketing Group, Intel Corporation addressing the gathering at the summit

So is it the end of the road for box-pushers as far as Intel
is concerned? Refuting this Chew explained, "We will work with resellers
and solution providers. But ultimately for the industry to become more robust
people have to start thinking in terms of solutions. Earlier we would give them
the product to sell and we would grow together. But now with the CBB we are
transitioning from products to entire package/solutions."

So while the volume might not be high but if the complexities
are varied and they need support from Intel at different levels then the rating
of the partner will automatically go high for Intel. However, that does not mean
that the company will have a single rule to judge people. It will vary from
case-to-case basis.

In her address Chew also outlined the new things that
partners can look forward to in 2006. Prominent among them will be websites,
collateral templates, third party logo and locked logos.

The way forward

Outlining the major trends in the IT segment Shane Wall, VP-Channel
Platforms Group and GM-Channel Platforms Solutions Group, Intel Corporation
said, "The revenue in software services is growing. Plus there is an
increased demand for security and manageability as SMB's are looking for ways
and means to mange the new IT opportunities that are coming up."

Holding forth on the opportunities that will come up Wall
said, "This year will see all major ISV's increasing their SMB focus.
That apart outsourced services will continue to see an upswing with evolving
business models and adoption of open sources like Linux will see a jump."

As far as the channel is concerned Wall feels that they can
only grow by transforming their business. Accessibility, affordability and
expertise will be the key words. The mantra for the partners is evolution.

"Intel is looking at helping the channels evolve by ISV
matchmaking. We will help the partners match specific needs of the local market
and merge those needs with Intel capabilities to provide solutions," Wall
added.

SMB specific stacks will be Intel's main focus this year.
These stacks will help the partner in not only meeting the hardware requirement
of an SMB customer, but Intel will help them in providing end-to-end solutions.
For this reason Intel has identified various open source software solutions,
which it will integrate and verify under the VBI program.

Intel is also looking at becoming more proactive in taking
the PC to grassroots level. With Community PC in India and the Haier Happy
Family PC project in China already accomplished they are looking at finding wide
use for the same across the globe.

Awards and recognition

Apart from the many presentations about the way forward and the new schemes,
the summit also saw the participants letting their hair down for Intel awards in
various categories. The Indian contingent almost made a clean sweep of the
awards for the South Asia market.

Vijay Mandora collected the award for Sai Infosystems who
were feted for Outstanding Leadership in Vertical Design from South Asia. Ockam
Infotech took home the award for Outstanding Leadership in Platform Transition
in South Asia.

The award for Outstanding Leadership in Revenue Contribution
for Desktop Business was conferred on Millenium Automations and System's Ltd;
while PCS Industries Ltd took away the award for Outstanding Leadership in
Revenue Contribution for the Server Business.

Singapore-based Dotxtra Systems India Pvt Ltd were honored
for their Outstanding Leadership in Revenue Contribution for the Mobile Business

Segment.

Shivangi Yadav

The author was hosted in Sanya, China By Intel