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Intel Calls Qualcomm A Top Strategic Account In Sales Reorg Memo

Intel is prioritizing rival Qualcomm as a top strategic account alongside the chipmaker’s largest OEM and hyperscale customers, according to a Tuesday memo outlining a new reorganization for the company’s Sales, Marketing and Communications Group.

In the memo seen by CRN, Intel Chief Revenue Officer Michelle Johnston Holthaus said the new global strategic account team, led by Ryan McCurdy, will join her staff and focus on Qualcomm, Dell Technologies, HP Inc., Lenovo, Amazon, Microsoft, and Google as accounts that “represent significant current and future revenue,” in many cases across multiple business units and regions.

[Related: Intel Takes On Nvidia With Vendor-Neutral Managed AI Service]

The move is part of a larger reorganization of Intel’s Sales, Marketing and Communications Group that will restore regional leaders for America; Asia-Pacific and Japan (APJ); and the Europe, Middle East and Africa (EMEA) regions. The reorganization, which Johnston Holthaus says will not have a major impact on Intel’s global partner organization, will take effect on January 1, 2022. Intel confirmed the move to CRN.

“I am optimistic that the changes in the organization will enable faster decision-making, especially at the edge,” wrote Holthaus, who sent the memo to employees of the Sales, Marketing and Communications Group after a presentation about the reorganization. “It will undoubtedly strengthen regional leadership and increase customer obsession. Our solution-oriented approach is ‘outside in’ and we invest in you and the seller experience.”

Intel wants to ‘link’ its car to Qualcomm’s growth, analyst says

The focus on Qualcomm as a top strategic account comes after Intel CEO Pat Gelsinger announced in July that the rival chipmaker will use Intel’s 20A process technology as part of its new Intel Foundry Services business, which aims to produce chips designed by other companies. businesses.

Daniel Newman, founder and principal analyst at Futurum Research, told CRN that Qualcomm’s prioritization as a customer shows that Intel believes the rival chipmaker has a bright future and wants to participate in its success through Intel Foundry Services.

“Qualcomm has momentum. It has growth. It is linked to connectivity on 5G and innovation,” he said in an interview. “So a lot of things are happening with Qualcomm that you might want to connect your car to.”

While Qualcomm is already competing with Intel in the PC space with Arm-based laptop chips, Newman said he expects the company to become more relevant in the space thanks to its $1.4 billion acquisition of chip startup Nuvia this year. The company has previously said it will use Nuvia’s CPU expertise and technology to “improve” its roadmap and “expand” its leadership position in the Windows, Android and Chrome ecosystems.

“Could be [Intel has] a view that the average media analyst, expert, lacks in terms of how relevant Qualcomm will be to computing and connectivity in the future and why Intel wants to be deeply rooted in it as it continues to materialize,” he said.

Newman said it is smart for Intel to diversify beyond its traditional processor business by offering chips designed by other companies as it will provide the chipmaker with new ways to grow as it faces increasing competition from several companies. on several fronts.

“If Intel can amplify that by basically saying, ‘Okay, even if you win, Qualcomm, even if you win, AMD, even if you win, Apple, we’ll still win.’ That’s a good strategy,” he said.

As for which of Qualcomm’s products Intel will eventually produce, Newman said it will depend on a number of external factors, including possible policies that could require more chip manufacturing in the United States, causing Qualcomm to shift some of its production. from the Taiwanese chip foundry TSMC.

“I think products will depend on substrates, supply, yield, needs, innovation, market and of course demand,” he said. “All those things will eventually shape it. So I would be remiss to say this product or this product. I think it will be driven more by the broader external environment of the market, and, of course, maybe by what happens in the end in terms of policy and regulations.”

In response to a CRN investigation, a Qualcomm spokesperson referred to CEO Cristiano Amon’s comments in support of the new Intel Foundry Services business during the company’s July third quarter call.

“We’re engaged. We’re evaluating their technology. We don’t have a specific product plan at this point, but we’re very excited for Intel to enter the space,” Amon said during the earnings call.

Intel Reorganization Establishes New Regional Sales Leaders

As part of the reorganization of Intel’s Sales, Marketing and Communications Group, Johnston Holthaus said the appointment of new leaders for the Americas, APJ and EMEA strengthens Intel’s regional sales model after the company named Rui Wang as president of Intel China in September. .

“The regional leadership teams will be fully empowered, working closely with customers, with a stronger momentum on trends, driving growth and local opportunities for the company,” wrote Johnston Holthaus, whose full title is executive vice president, chief revenue officer and general manager. of the Sales, Marketing and Communications group.

The Americas team will be led by Greg Ernst, who most recently served as Vice President of the Sales and Marketing Group and General Manager of US Sales. The APJ team will be led by Steve Long, most recently global vice president of client computing sales. Johnston Holthaus added that the EMEA team leader is yet to be confirmed.

Intel will continue to have sales leaders for its business units, according to the memo. Rose Schooler will continue to lead sales for the Data Center and AI Group, which was previously part of the Data Platforms Group prior to the reorganization of CEO Pat Gelsinger’s business unit in July. Nash Palaniswamy, Head of Sales for the Accelerated Computing Systems and Graphics Group, and Dermot Hargaden, Head of Sales for the Programmable Solutions Group, will report to Schooler.

Brad Haczynski will lead sales for the newly formed Network and Edge Group, which Johnston Holthaus called a formalization of his previous responsibilities as general manager of global IoT sales. Johnston Holthaus added that Haczynski will “incubate a Global Solutions feature in 2022” that will host Intel’s Olympics Program Office, as well as two or three key verticals yet to be determined.

With Long becoming the head of Intel’s APJ team, it means the company is looking for someone new to serve as the head of sales for Intel’s Client Computing Group, Johnston Holthaus said.

As for other changes, Johnston Holthaus said Intel’s new Customer and Sales Excellence team, led by Becky Brown, will join its workforce.

“The next three years [the Sales, Marketing and Communications Group] and IT are investing in the tools needed to improve our customer and seller experience,” she said of the change. “We have identified key roles and functions that are managing customers and vendors to move into this new organization, which will be upgraded to SMG Staff level.”

Johnston Holthaus added that things will “stay relatively the same” for the Global Partners and Support team, led by John Kalvin, head of global broadcaster; the Global Communications team, led by Tara Smith; the Global Marketing team, led by Karen Walker; and the Corporate Planning Group, a team led by Stuart Pann that moved under Johnston Holthaus in June as part of a separate reorganization. She indicated that there were no changes for the people, finance and legal teams.

“We regularly review and make changes to the structure of our organization to ensure we are in the best position to serve our customers around the world,” an Intel spokesperson said in a statement to CRN. “We are excited about the new structure of Intel’s Sales, Marketing and Communications Group, which will strengthen regional leadership and increase customer obsession.”

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