It's restructuring time at Intel

In a bid to keep up with the changing business dynamics, Intel India has engaged
itself in a big restructuring exercise. As part of this initiative, the company
is in the process of dividing India into three geographies, which would be
headed by three different business heads for smooth running of the company's
operations in the Indian region.

As per the company's plan, India would now be divided into three
geographies of South (including Sri Lanka), West and North (including East and
Bangladesh). According to sources close to the company, Joydeep Bose, Rajesh
Gupta and Sandeep Aurora will now head these regions respectively. While
official sources at Intel have neither confirmed nor denied this development,
experts in the channel community are feeling that all these moves are being
directed to have better business results from this region.

“If we closely look at each of these positions, certainly there are a
different set of responsibilities and roles that are being assigned to these
people now. This would certainly help the company in terms of better managing
the overall business. This would also mean that decision-making will become
local and focused towards each of these regions. This is really good for
cultivating better results,” informed a New Delhi-based industry source close
to the company's operations on condition of anonymity.

GB Kumar to join Cisco

In another big development within the company, GB Kumar, Director-Sales, South
Asia, Intel has decided to move out of the company. According to key sources,
Kumar has already put in his papers and is likely to join Cisco for its 'Customer
Advocacy Services division' and would be based in Bangalore. He is likely to
join from December 1, 2006. When contacted, Kumar declined to comment on the
issue. “I cannot comment on this at present. All I can say is that for now I
am very much with Intel,” he added. An old timer with Intel, Kumar had joined
the company way back in August, 1996 and has also worked with Oracle and IBM.

On the other hand, sources close to Cisco have confirmed, on condition of
anonymity, that Kumar is moving to the company's fold very soon. “He is
going to join for the customer advocacy services division,” the source added.

Sub distribution model stopped?

After having started the 'channel-friendly' sub distribution model to push
its sales for India, there is confusion all around regarding the current status
of this model within the Indian region.

It may be recalled that as part of this program, Intel had identified 12 key
'distribution associates' in the month of July 2006. While some of these
sub-distributors are saying that there is no 'official communication' from
Intel to close this model, certain sub-distributors have confirmed that this
model is being stopped by the company. Even as the company's official
spokesperson has come forward to confirm that the program still exists, people
from the distribution and the channel community are saying that Intel is not
moving ahead with this sub-distribution model in India.

“I know for sure that Intel is not billing the channel community as per
this sub distribution model now,” asserted a channel player from Chennai on
condition of anonymity. While all these developments seem to be different to an
outsider, there is a common thread of fighting with the competition, which is
weaving these developments together. “A very big industrialist once said that
a company needs to reshuffle its cards every now and then in order to put a
brave face in front of its competition. The company is doing just that. All
these developments are a part of the company's efforts to streamline its
people and business activities,” added an industry expert.