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Intel Backs Off of Appliance Strategy

Intel Corp. has apparently had a change of heart about how it will sell and distribute its line of server appliances.

According to a report by industry analysts IDC, Intel was going to sell its NetStructure appliances directly to customers and bypass its usual original equipment manager (OEM) channels. Intel has recently changed course, the report states, and decided to stick with its OEM partners.

"To avoid directly competing with its traditional customer base, Intel has brought its NetStructure strategy back in line with the rest of its business,” writes IDC’s John Humphreys. “Instead of selling directly to end users, Intel will sell its appliance servers through the traditional OEM channels.”

IDC says that Intel may have had this strategy in place from the beginning. "Intel's direct participation in the market focused attention on the space and brought about a lot more competition, which in turn has put pressure on server and networking companies to bring additional appliance products to market. This strategy to bring attention to this market was almost certainly always in Intel's plan," the report states.

NetStructure includes a number of appliances, including caching appliances, management appliances, hosting appliances, and XML and e-commerce accelerators. - Keith Ward

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.