To outsiders, microprocessor manufacturer, Intel could appear to be delving into competencies that are not core to its business, especially in the Middle East, Turkey and Africa (Meta) region.
Intel has been working in a number of partnerships throughout emerging markets (including Africa), but acting as more of a relationship broker, educator and group advisor, than a pure-play manufacturer.
This begs the question: Will we see a different picture of Intel in five years time? The short answer, says Ayse Ildeniz, Intel director for the Meta region, is that Intel is, and will always remain, the largest silicon product manufacturer in the world.
However, says Jacques van Schalkwyk, country manager for SA and sub-Saharan Africa, Intel has had to implement new strategies to cater for emerging markets, because a one-size-fits-all approach is just not viable.
The company recently said that it was going to adopt a user-centric approach to developing and marketing its products, as opposed to the product-centric approach many multinational companies adopt.
In light of this, Intel set up a platforms division, aimed specifically at developing solutions for user applications, of which Centrino Mobile Technology and Server Platforms are products.
Product definition center
According to Ildeniz, Intel?s renewed focus on developing platforms for emerging markets has resulted in the company setting up a product definition center in Cairo, which will work on developing products specifically for Africa.
The strategy, says Van Schalkwyk, will be to drive technology education through initiatives such as Intel?s Computer Clubhouse, Teach to the Future, and localized digital educational content. Skills and channel development in rural areas and other African countries are also a major focus for Intel, he says.
?In SA in particular, we have a bullish middle class that is growing quite rapidly, and, with GDP performing well over economists? expectations, disposable income is on the increase. We need to find new ways of targeting these markets,? Van Schalkwyk adds.
Intel?s local operation has developed a road map for the continued expansion into the rest of Africa. According to Van Schalkwyk, Intel will be adopting a three-region approach, starting with the SADC with headquarters in SA, West Africa, with HQ possibly in Nigeria, and, eventually, East Africa, where Intel proposes setting up shop in Kenya.
News from last week?s Intel Developer Forum (IDF) conference in San Francisco, which was particularly relevant to emerging markets, included a showcase of a rugged PC that can better handle harsh climates, intermittent electricity, dust and bugs while accessing the Internet without wires.
On stage and via video from India at the Forum last week, the Intel-based PC, or ?community computer?, is meant to provide Internet access to entire communities and villages in rural and remote areas using WiMAX.
Through use of a car battery, the computer has a back-up energy supply in case electricity supply is sporadic, and contains special screens and filters to reduce the amount of dust and insects that might enter the box and cause reliability issues. The computer has also been designed to handle extreme heat that exceeds 100 degrees Fahrenheit (almost 38 degrees Celsius).
Also at IDF, noting that high-tech companies are growing again as a result of delivering exciting new products, Intel CEO and president, Paul Otellini, says that the industry is on a new ?performance per watt? course, which will deliver Intel-based computers that are increasingly smaller, sleeker and more energy-efficient.
Otellini unveiled the company?s next-generation, power-optimized micro-architecture for future digital home, enterprise, mobile and emerging market platforms - and low-power products that will enable a new category of converged consumer devices.
Intel will introduce the micro-architecture in the second half of 2006, which combines the company?s current NetBurst and Pentium M micro-architectures and adds new features.
Otellini showed the first public demonstration of Merom, Conroe and Woodcrest - processors for notebook, desktop and server platforms designed on Intel?s advanced 65nm technology manufacturing process. He also said Intel has more than 10 processor projects that contain four (quad-core) or more processor cores per chip.
Otellini additionally announced that forthcoming lower-power products will lead to a new category of ultra energy-efficient ?Handtop PC? devices, that provide a converged communication and PC-like experience, but require less than a watt of processing power and weigh under a pound.
Intel and Lenovo demonstrated Intel VT. Among other capabilities, virtualization will enable IT managers to ?cordon off? a section of the platform for maintenance, to troubleshoot or download software without interrupting a PC?s functions. The feature will be part of Intel?s next-generation, stable image platform for office PCs.