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Intel to D&H Partners: “We’re Working Very, Very Hard to Get You Product”: Page 2 of 2

Speaking at D&H’s 2019 West Coast Technology Show, Partner Sales Director Todd Garrigues (pictured) told partners that most of the processors currently in short supply should be available in larger quantities by the third quarter of the year. By Rich Freeman

Though he opted not to emphasize it for fear of sounding insensitive to less fortunate companies, Garrigues conceded that the origins of Intel’s supply problems lie in what most people would call good news versus bad: People are buying PCs, a supposedly dying product category, in larger than expected quantities. Indeed, Intel’s PC revenues were up 9 percent in its last fiscal year despite its supply constraints.

“We miscalled demand,” Garrigues told keynote listeners today. “Demand was higher than supply, and we struggled to meet it.”

Intel foresees strong demand for a range of recently released and forthcoming products in other categories, according to Garrigues. “We’re very excited about the wealth of opportunities in front of us,” he said.

Those include the data center market, which accounted for close to half of Intel’s revenue last year and is growing at a more than 15 percent CAGR, versus zero percent for PC-related products.

“Now and over the last several years we shifted to a data-centric company,” Garrigues said. The launch of Intel’s new Optane DC Persistent Memory, which is scheduled to take place next Tuesday, will only accelerate that trend, he added.

“Our aspiration here is nothing short of redefining this category, memory and storage,” Garrigues said.

There’s life in client computing as well, he added, noting that Intel’s gaming, commercial IT, and Google Chrome businesses all grew at double-digit rates in 2018.

Executives at SYNNEX Corp. discussed the potential impact of Intel’s supply challenges on K-12 sales with ChannelPro earlier this week at the spring 2019 meeting of its Varnex partner community.

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