"Transformation is hard”: Intel ANZ channel exec on how recent changes have impacted the company and its partners

George Chacko, general manager, SEA and ANZ sales at Intel discusses how the chip maker will confront these challenges.

The past year for Intel hasn’t been the smoothest ride, and more recently the computer chip giant changed its executive leadership and will cut its operating expenses by US$1.5 billion through the next year.

Commenting on these changes, George Chacko, general manager, SEA and ANZ sales at Intel told CRN Australia, “transformation is hard”.

“I wouldn't belittle the fact that transformation is hard. It's hard for us because we're learning a new way of doing business,” he explained.

Chacko said ultimately these changes are to benefit Intel and its channel partners.

“It's not to reduce Intel to a smaller player, it's to make us more efficient in how we reach out. When we go through transformation, I said it's a transformation, not just for us, but as we engage with the channel as well,” he stated.

“In the past, we know we've got a big role to play in the industry, because even on a bad day, we are 80 percent of the market, and therefore what we do does impact the rest of the ecosystem.”

Chacko noted that Intel is “doubling down” on channel.

“When we become efficient on our side, we have fewer people and therefore we know that if we have to reach our end customer, which is our final goal, we have to rely more and more on channel,” he said.

“Unlike what you might think, we're actually doubling down.”

He said the company’s partner program, the Intel partner Alliance is stronger than ever before.

“We're trying to look at channel health more than anything. It's not about having some numbers on how many channel partners we reach.

“It's about having the health of the channel, which means that our partners need to be profitable on their entire business, and we need to have a win-win relationship, because it cannot be one way.”

Keeping up with Intel’s partners

Chacko mentioned that Intel have been “rightly accused” by their partners for not keeping pace with their feedback and how they were rolling out their programs.

“Now we at least believe that our programs are much more efficient in how we are helping our partners sell out the product that they have bought from us in the previous quarter,” he said.

How they are helping their partners is through marketing programs, targeting the right SKUs, and launching their products at the right time with the right messages.

Chacko said transformation has been hard because Intel has lost some people that were in regular touch with the channel for years.

“They're no longer there so those new connections need to be built,” he said.

“Both in terms of communication, in terms of how we help them do their business better with Intel, I think we're making great progress.”

When undergoing transformation, Chacko said outreach is the most important factor that often goes missing.

Chacko and his team have been travelling the region and meeting with their partners and have felt the love from their ecosystem but there are still areas of concern.

“Generally, the feedback has been positive, especially now that we're reaching out to them and getting feedback and helping them,” he said.

“They are our first layer of sensing on where the market is going because with all these changes that are happening in the environment related to tariffs and everything right now, everyone's focused on the supply side, but we are equally focused on the demand side.

“Is there a stall that's going to happen because of the uncertainty, and therefore, do we need to prepare?”

Chacko said Intel needs the feedback from the partners.

“Having the channel partners, tell us and have that direct engagement is just refreshing for us as well as we go through this transformation,” he added.

Partner program changes

In terms of Intel’s partner program, Chacko said the chip maker is becoming more focused on how they are engaging their partners.

He said different partners are at different paces, so they have to ensure they are in line with those who are on the “leading edge”.

“For example, if someone is going wants to go faster on AI PC, we would have our program give them a higher benefit, because they want to go faster on AI PC, and that's where the industry is going,” he said.

“Versus someone who just wants to sell the low end and only that and not transform.”

Chacko said Intel’s product partners have become more focused on trying to give those incentives where they can make the most of it.

“Otherwise, we're talking through both sides of our mouth because they're saying, ‘hey, do this new and shiny object, and that's what you need to go sell to customers’. Meanwhile, there's nothing special [about the product]. so we've changed that.”

Message to the channel

When asked what he would like to say to Intel’s ANZ partners, Chacko said, “get on board”.

“Come join us. We can't do this on our own and we've never had that feeling, and so it has become more important to us for them to journey with us, to tell us where we can do better,” he said.

Chacko said the company “won't get everything right”.

“We're listening more than we're talking and we'd like them to come and tell us how we can serve them better,” he explained.

“How we can help them establish a win-win relationship, where they feel they're winning, they're doing the best for their customers.

“At the end of the day, the customer gets to see the benefit of all this technology, do it safely and do it in the best responsible manner, both to the planet and to their life.”

“So great opportunity come join us and make the most of it,” he ended.