INTEL SOLUTIONS SUMMIT 2002: Saluting Channels The Intel Way

Martial arts and channel business may sound like two completely unrelated

terms. But going by the opening address of the fifth Intel Solutions Summit (ISS)

held on 12th April, 2002 at Shanghai, the similarities between the two only

becomes obvious. As in martial arts, channel business calls for some quick and

tough decisions and one has to keep one’s sight on the opponent to stay

unharmed. This message was not lost among the 1,000-strong dealer audience, most

of whom were recovering from the onslaught of the global recession.

At the summit, Intel urged its partners to focus more on Web services.

According to the company, this segment is expected to witness a growth of 49

percent during 2001-06. Addressing the partners, Michael Splinter, Executive VP

and Director, Sales and Marketing Group, Intel Corporation said, "The

Internet is a great opportunity for business penetration, as over a billion

households in Asia have Net access. The PC will figure as the center of the

digital world and the channel can make this world a reality."

Kamlesh Patil of Ockam collects the best marketing award from Intel’s Christian Morales

He added that business was tough, but partners were able to survive and

prepare themselves for the future. "PC unit sales sank for the first time

in five years since 1985 by 40 percent. Of the total Intel business, over 65 per

cent came from the channel," pointed out Michael.

Channels did well in SMB, government and education segments because these

were less impacted by the economic slowdown than the corporate segment. In

addition to this, Internet continued to be the growth driver. Said Michael,

"The channel business model is more adaptable in tough times, because of

the small size of channel companies and their proximity to end-users."

Roadmap for the future



Intel’s channel roadmap for 2002 talks about continuing innovation of

solutions-based offerings and strengthening the concept store retail program. It

will also help partners in vertical demand creation and enhance the channel

co-op advertising strategy by increasing the marketing funds for the APAC

region.

Intel’s America Reseller Channel Operation VP, Thomas

Kilroy added, "There is a huge replacement market for PCs. Also, according

to our APAC notebook forecast, the home market will grow from 600 million units

in 2000 to 1600 million units by 2005 in this region. This shows that notebooks

too will premiere as a great business opportunity for the channel."

“According to our APAC forecasts, notebooks will premiere as a great business opportunity for the channel.” Thomas Kilroy, VP, Reseller Channel Operation, Intel Corporation

Match-making for channel benefit



Intel recently launched the ‘Build your own notebook/server" program

for channels and is expanding its network to more B and C-class cities. It will

offer specialized training for notebook assemblers under this program. It will

also help in match-making between Taiwanese chassis manufacturers and notebook

assemblers to bring down the notebook prices.

Similarly, Intel will bring about match-making between

software providers and channels involved in building server blocks. It will try

to correct the customer perception that while buying servers, one must go for an

established brand instead of local GID brands.

Intel Inside, channel outside



Last year, Intel announced that Intel dealers could use the ‘Intel Inside’

logo in print advertising and on company web sites. However, the ‘Intel Inside’

logo program will be restricted only for desktops and not for servers. Explained

Christian Morales, VP And GM, APAC, Intel Semiconductor, "The server market

needs focussed marketing and the scale of units sold is low."

Intel has expanded its channel co-op-advertising program for

its APAC dealer network to include reimbursement for alternative marketing

vehicles.

By the second half of 2002, Intel also plans to double the

number of dealers participating in the program. The program has been expanded to

allow the dealer channel to address consumers’ preference to get information

through a variety of advertising and communication vehicles.

And the award goes to...



The highlight of the event was the awards function held at a gala dinner.

Partners were entertained by Oriental singers and young gymnasts whose feats

made everyone hold their collective breaths. Thomas Kilroy had his moments of

dread when he was made the target of a blindfolded knife-thrower and his tension

was palpable. Luckily for him, he made it through without a scratch.

“The PC will figure as the center of the digital world and the channel can make this world a reality.” Michael Splinter, Executive VP and Director, Sales and Marketing Group, Intel Corporation

Awards were given based on efforts put in by partners in

various spectrums of the channel business. JC Hyun Systems of Korea, SIS

Technologies of Singapore and Hong Kong-based Laser Computers won the ‘Best

APAC P4 Ramp in 2001’. The ‘Gigabit Inspiration Award’ went to Chass

Computer Consultants of Singapore.

Intel’s ‘Premier Provider Marketing Award’ was bagged

by India’s Ockam Infotech for outstanding efforts in marketing and awareness

activities in 2001. Said Kamlesh Patil, MD, Ockam Infotech, "This is the

first time in two years that an Indian company has won an award at the ISS and I

am proud that my efforts were recognized by Intel."

Intel awarded the ‘Boxed P-4 Processor Sales Award’ to

Panesian Taiwan Ltd for taking the initiative to demonstrate the technology with

an e-learning solution to penetrate into the education and government segment.

Intel’s ‘Server Sales Award’ went to Chinese company Shenzhen Powerleader

Science & Technology. AI-EN Enterprises of Singapore won the ‘Boxed Mobile

Sales Award’ for the largest percentage contribution rate to local country

mobile business for APAC in 2001.

Korea-based Safer Computer were the winners of the ‘Desktop

Motherboard Sales Award’ for pioneering the adoption of Intel’s boxed

desktop motherboards in Korean channels.

Cuenet Inc, also of Korea, bagged the ‘LAN Sales Award’.

The ‘Gigabit Sales Award’ went to Beijing-based Haotian Hengtai Science Co

Ltd for being the APAC leader in Gigabit adapter sales in the channel.

Intel also put up a showcase area where it got over 30

vendors to exhibit unannounced products. Partners could be found checking out

new technologies as well as striking deals with vendors.

Intel made sure that the trip was not all work and no play.

It gave partners a glimpse of Shanghai night-life by taking them to the Xin Tian

Di street which is known for its plethora of pubs and water-holes. It was hardly

a wonder that at the end of the day, one could see partners rooting for Intel

and waiting excitedly for the next ISS summit, guessing where it could be held

next.

VINITA BHATIA in Shanghai