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Intel Introduces Notebook Building Blocks

http://www.channeltimes.com/story/intel-introduces-notebook-building-blocks/

Intel announced two key channel initiatives at its recently concluded Solutions Summit held in Sanya, China: promotion of interchangeable mobile PC components through the use of common building blocks (CBB) and a new channel program based on a partner’s capabilities rather than pure business volumes.

While Intel has been talking about standardization at the component level for quite some time now, the company has now taken several key initiatives to bring this dream to fruition. Asus, Quanta Computer and Compal - three of the top notebook ODMs in the world boasting a combined market share of close to 70 percent - have agreed to be a part of Intel’s CBB initiative.

Intel has identified seven basic components namely, optical disk drives, customizable notebook panels, LCD panels, HDDs, battery packs, power adapters and keyboards wherein the ODMs can introduce standardization, making them interchangeable and readily available for replacement or upgrade. The CBB will help partners build customizable notebooks, while standardization of components will ensure compatibility.

William Siu, VP & GM, channel platforms group, Intel, said, “Lack of standards has resulted in added complexity and cost for smaller players. Standardization would help the entire industry to grow faster through overall industry adoption and accelerated growth.”

According to Chetan Shah of Mumbai-based Xpress Computers, “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.”

CBBs, according to Marcus Low, director of Intel’s APAC reseller channel operations, will help reduce downtime and make mobile PC ownership a comfortable experience for the customer. Standardization would help Intel’s partners reduce inventory and improve the overall quality of service provided to end-customers.

Intel will invest in R&D to ensure that the CBBs meet its quality parameters and standards of compliance and thereafter certify it under the Verified by Intel (VBI) program. Said Chetan Patel of Vadodara-based Ocean Inc, “Intel’s backing and the VBI tag will help us push the whitebooks, as we will enjoy greater customer confidence. In addition to this, customers have the option of customizing their notebooks to meet personal taste, an option that is not available with branded notebooks.”

The microprocessor major also plans to empower its channel 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. Intel has identified various open source software solutions, which it will integrate and verify under the VBI program.

Other channel-friendly initiatives from Intel include a pre-launch sales kit to prepare its partners prior to any new launch. The company is also planning to reduce the number of SKUs in the market and concentrate on promoting the highest running ones.

In addition to this, the company plans to do away with its existing IPP, ITR and GID programs and introduce new ones based on a different set of eligibility criteria. The emphasis now will be on a partner’s capability to provide robust solutions based on Intel’s offerings rather than pure business volumes. Existing partners will be re-slotted under the new nomenclature as Premier, Associate or Registered partners based on these criteria.

Intel expects to go live with the new program in the second quarter of the current fiscal.

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