PC's Emerging Wings

So far, most of the innovations in usage and technology has always been
localized in the mature markets, a reason why emerging geographies have lagged
behind in PC penetration. Intel, now, wants to correct this historical neglect.
The good news comes in the form of platform definition centers (PDCs) that now
nest close to these markets and promise to understand what people in these
markets value in terms of technology or more.

Four PDCs-in Bangalore, Cairo, Sao Paulo, and Shanghai-will now take a
holistic look at all the problems of the regions (power, connectivity, dirt,
weather), examine the three vectors of PC adoption (application, affordability,
business model), and create solutions. Findings would be collected for a market
impact analysis and a business plan created. Technology will just put together
the pieces and ensure a faster time-to-market for the OEMs. Intel would use its
existing processors and chipsets for the platform, but if and when required, it
is willing to come out with a new processor to meet the requirements of a
particular segment of the market.

The fact that Intel does not sell end-user PCs is common knowledge. But some
of these developments point to the increasing role the company is taking in
computer and component design. According to some accounts, it is planning to
develop blueprints and prototypes of subsystems in these centers, complete with
integrated software, before licensing it to computer manufactures. Intel India
says that its relationships with the OEMs will continue to be the way it is
defined today, except for the fact that there will be some enhancements in the
relationship as it will take over 'some of their responsibility' by investing in
research and technology innovation. For the Indian OEMs, it could translate into
a sales-volume boom and take them to newer segments of the market, which they
would have otherwise taken a longer time to reach out to because of their own
revenue pressures. The other tangible benefit will go to the government, as the
Indian center plans to support in a significant way some of the government's
initiative to create a PPP and sustain it in the ICT space. "This is a
place from where we can understand how an industry partnership with the
government in creating a new platform for the ICT segment can be done,"
says the director of emerging market initiatives, Channel Products Group at
Intel India, Joydeep Bose.

The PDCs also bring in significant investment. The process of user research
is intertwined with technology. So, for an ethnography research on a
specific-usage model, for example, a lot of concept testing would be required
for which prototypes and concept platforms need to be created. All the PDCs will
therefore have a lab. In terms of human resources, the Bangalore center, which
started operations in June 2005, may grow to a 100 people in two year's time.
With more than 70% of Intel's revenues now coming from outside the US, the PDCs
look worth the investment.

Goutam Das