Intel GIDs will now assemble notebooks, WLANs

In pursuance of its strategy to help GIDs (Genuine Intel Dealers) keep pace with technology, Intel's latest initiative has been to enable them to assemble notebooks and WLAN. There is tremendous scope for both the technologies. While the notebook penetration in the country stands at a poor three percent, WLAN is an emerging technology which is slated to take off in a big way by 2005.

Assembled notebooks are targeted at a very niche market. "We are not necessarily providing a cheaper alternative as much as offering a good technology deal," explained RK Amar Babu, GM (Channels), Intel Asia Electronics Inc. A number of GIDs have developed very close relationships in the corporate segment and there is a potential market for GIDs here particularly since a lot of notebook purchases occur through repeat orders. There are around 20 GIDs who have qualified for the program of assembling notebooks.

In the WLAN space, Intel offers most of the products like access points, wireless cards, antennas as building blocks and have trained a handful of GIDs to offer the solution to corporate customers.

Both these programs are part of Intel's initiative to help GIDs move up the value chain. With shrinking margins in the channels business, partners are forced to learn newer technologies and provide differentiated services to customers. "The key today for being a successful GID is an ability to keep abreast with technology and capitalize on existing relationship with customers by offering customized technology solutions," said Babu. Intel's channel strategy has been a major factor for its success in the country. IDC estimates put the contribution from channels to be 60 percent of Intel's revenue.

Earlier, Intel had launched another technology initiative called "Build your server" program wherein 150 GIDs were trained and certified to build a server using the latest technology and configuring best suited to the needs of the customer.

Intel has another set of premium partners called "Premium Providers" who stand at the highest end of the channel pyramid.

These are a select group of 50 odd partners who have qualified after going through Intel's stringent technology programs.

These partners are allowed the use of the special Intel logo created for this purpose and are privy to a number of special support programs.

Another new focus area of Intel is the emerging markets which are the tier 2 and 3 cities. Currently the consumption from the top eight cities constitutes about 60 percent with the smaller cities contributing the rest. With PC increasing penetration, these markets are expected to contribute significantly to Intel's revenue. Intel's strategy for these markets would be to use local languages and local medium to educate the market in collaboration with its local partners.