Johannesburg, 18 Aug 2000
Intel is altering its business strategy, and shifting its focus to encompass the Internet economy.
The company, known primarily for its processors, has created a new division, Intel Online Services, and is positioning itself as a provider of various products and services. Ned Jaroudi, business manager for the Mediterranean, Middle East and Africa channels, spoke to ITWeb to expand on this new strategy.
Jaroudi says the company`s new services offerings are targeted at client platforms, server platforms, and networking and communications.
"Intel Online Services is basically a series of server farms, to host Web sites for big and medium-sized organisations. The first two have been rolled out in the UK and the States. The idea is to move into a 'solutions sell`, specifically targeting e-commerce and e-business as companies change their business models, or as new companies start from scratch.
"We feel pretty confident that we have all the pieces of the puzzle in place - what we need to do is build the right channel to deliver those products and services. That`s what we`re trying to do in the region - [and the first step] is to identify the partners that can provide the solution sell."
Intel`s key focus with regard to developing the top tier channel is its Premiere Provider programme.
"In SA specifically, we were first to build that kind of entrepreneur provider channel, and we`ve got the most Intel Premiere Providers (IPPs) in this region than all the other regions. The target is to have 10 more by the end of the year."
The company is grooming its South African channel at various levels, says Jaroudi. For example, it`s equipping local distributors to enable them in a training capacity.
"In SA specifically, our support is going to increase compared to the past, because we`re appointing more people. The integrated channel team is going to comprise four dedicated people."
In line with the company`s new focus, the IPP certification process incorporates an e-business certification track through which an IPP can skill employees in the way of e-business.
"The idea is to differentiate themselves. Typically small, medium and large businesses like to have one company providing a full turnkey solution. Now, an IPP may not be capable of providing the entire solution. So another aspect is the teaming up aspect - the skilling up solution - where they can team up with another Intel IPP and approach the client as a single entity.
"To aid that, we`ve started a Web site called the e-business marketplace where an IPP can go and find prospective partners. There are lists which enable matchmaking on the Web. We introduced the concept at our last channel conference, and we`ll be focusing on it in the next channel conference which kicks off in October."
But that doesn`t preclude Intel`s other lines of business. Jaroudi says Itanium, Intel`s 64-bit processor, will definitely feature prominently next year.
"It fills one of the last holes we`ve had in our product offering. We`ve never had a 64-bit architectural platform. With Itanium, we`re there, and not only are we there alone, we`re there with the broadest industry support possible, both in terms of hardware and software. Every [industry player] who can provide the elements of the server infrastructure is going to be supporting Itanium.
"We don`t want to lock people into vertical proprietary solutions. We`ve always been very open in terms of our architecture and we`ve always tried to work with the major industry players whenever we announce a new technology or in this case a new technology architecture. And we`re very excited about what Itanium is going to provide - initially in terms of targeting the high-end data centres that are going to enable corporates to conduct e-business and become e-corporations, which is kind of where Intel is going."
The company is also investing heavily in mobile commerce. "M-commerce is definitely at the heart of our whole wireless strategy. We`ve invested a lot in wireless technology over the last year by acquiring key companies as well as opening wireless competency centres around the world. We`ve got about 700 people employed in the wireless division, and they`re developing products based on the Bluetooth specification.
"Wireless will be key for us as we look to enhance our product offering. The whole idea behind technology is that it will enable a better business model. Technology enables strategy - that`s the bottom line."
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