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Intel Introduces ISP Initiative

Chipmaker Intel Corp. is continuing its transformation into an Internet-based company continued this week at Spring ISPCON '99.

Last fall, Intel completed a series of aggressive investments and acquisitions with Linux entities including Red Hat, VA Research, and Shiva.

Intel then constructed their Internet Data Services division, which signed a deal with Excite to develop a simplified buying and selling experience on the Internet. With Web based delivery and platforms in place, Intel intends to provide components for the Internet infrastructure and high performance service-side solutions.

Last week, Intel shared its corporate vision with the world; "One billion connected computers, millions of servers... and trillions of dollars of e-commerce."

Tuesday, Sean Maloney, Intel's senior vice president and director of the sales and marketing group, introduced a three-part "building block" to ISP conventioneers in his keynote address. The worldwide Intel initiative will provide ISPs with a channel program of Intel sales and marketing tools consisting of hardware, operating systems and application stacks.

"Intel will dedicate products, sales and marketing resources to the needs of the 14,000 local and regional ISPs around the world," Maloney said. "Our goal is straightforward -- we want to become a single resource for supplying and supporting the equipment that ISPs rely on to maximize up-time and revenue."

The Intel channel program consists of dedicated LAN/WAN connectivity products and server solutions operating on Linux, NT or Solaris platforms. The hardware will be brought to market by a dedicated Intel sales, technical and marketing team. The Intel channel program will also feature a private Web site to further assist ISPs in expanding their local revenue streams with virtual private networks, e-commerce and other marketing solutions.

Robbie Swinnen, director of Intel's worldwide channel programs and development said the initiative is one of the largest of Intel's recent investments.

In his address, Maloney said ISPs are evolving from their traditional role of providing Internet access to becoming a source for many new Internet-related services.

"Through technology alliances with Intel, ISPs can become (value-added resellers) capable of offering their customers scalable and affordable solutions based on the trusted Intel brand name."

Intel predicts that by 2002, e-commerce will reach $1 trillion in the U.S. Maloney added that within two to three years, Intel will derive all of its sales revenue through its e-commerce Web sites.

"E-commerce is not plug-and-play technology. The only way for small or medium-sized business to launch a successful business venture is to partner with their local ISP. The only way Intel can reach those companies with advanced e-commerce solutions is by partnering with ISPs."



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