Intel urges PC partners to open new markets

Intel urges PC partners to open new markets

Vendor's regional sales and manager manager says government stimulus packages will be key for channel survival in the tougher economic climate

Intel has identified government spending as a main avenue for channel survival in the current economic climate.

Speaking at the Intel Solutions Summit, vice-president of sales and marketing and general manager of Intel Asia-Pacific, Navin Shenoy, said stimulus packages around the world dwarf any other concentrated government spending initiatives.

"The scope of government stimulus packages is much larger than anything else in history, such as the efforts to rebuild Europe after World War 2, or NASA's attempts to launch a rocket," he said. "Between three and seven per cent of that spending will be on IT and broadband – there is opportunity there."

It is key partners take advantage of this government spending, while at the same time continuing to invest and look to generate demand in the market, Shenoy said.

"We believe you cannot save your way through a recession – you must spend and invest your way through a recession," he said. "Intel is continuing to invest in newer technology, and we're working with our channel partners to help create demand."

There are still a lot of people who do not own computers and a large number of PCs are ripe for an upgrade, Shenoy claimed.

"Keeping notebooks past their prime costs money," he said. "Each machine that is extended past its three year life span for an additional two years will cost an organisation an additional $1050.

"We also tell our channel partners that we have a long way to go before there is notebook saturation. I believe that because costs keep coming down and the market is becoming more segmented, notebooks will continue to grow in a similar way to mobile phone uptake.

"It's an exciting opportunity for Intel, as well as many of our partners."

Nettops will also present Intel and its partners with an avenue for growth and increased penetration, Shenoy said.

"When I go to emerging nations and tier three and four cities, computer penetration is almost non-existent, and it's because of the price, which is prohibitive in these areas," he said. "Nettops will give us the opportunity to reach an acceptable price point and access these markets."

For these regions, channel involvement will be critical, Shenoy added. "Channel partners are the ones with a local presence in these regions and cities," he said. "It's critical that we work with those partners to gain a foothold in these regions."

- Matt Sainsbury travelled to the Intel Solutions Summit 2009 as a guest of Intel.

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