Whatever we say today in appreciation of computers might sound an understatement. After all, everyone is well aware that work life would almost come to a standstill sans computers. We cannot really imagine any organization to work without computers. And, the very heart of a computer is its motherboard. It is the primary component of a computer and is sometimes called the mainboard. The total number of motherboards sold annually in the country is more than 8 million units. Let us take a look into how much does the channel contribute to the sale of this very important component. 

Technology

Simmtronics being a company which only manufactures motherboards in India provides global warranty to its customers and RMA support for three years. Simmtronics manufactures the complete range of Intel, AMD and VIA motherboards. It has recently launched Intel-based H-61 and VIA 2000E+ motherboards. In an exclusive tie-up with VIA, Simmtronics is working towards green computing devices. 

The Gigabyte Ultra Durable 2 design utilizes All Solid Capacitors manufactured in Japan which are rated to last for at least 50,000 hours in operational use. Gigabyte Ultra Durable 2 motherboards also feature Ferrite Core Chokes with higher energy efficiency compared to more common iron core chokes and Lower RDS (on) MOSFETs which feature lower resistance, i.e. reduced power consumption and heat. Some motherboards in this segment feature the Gigabyte Ultra Durable 2 Classic design, which features All Solid Japanese manufactured Capacitors and Lower RDS(on) MOSFETs. 

Intel Desktop Boards are built by Intel to the same quality and reliability that are of Intel processors. Intel Desktop Boards integrate quality chipset and component technologies to ensure long-term system stability. Both the processor and the motherboard in the PC are built and supported by Intel and its Desktop Boards and processors work together. Similarly, Intel Server and Workstation Boards deliver maximum energy efficiency and lower hardware refresh costs. 

ASUS motherboards are energy efficient because of the Energy Processing Unit (EPU) as it does system-wide energy optimization by automatically detecting current PC loadings and intelligently moderating power consumption. Also, most of our motherboards are European Union's Energy-related Products (ErPs) ready, and ErP requires products to meet certain energy efficiency requirements with regard to energy consumption. This is in line with ASUS vision of creating environment-friendly and energy-efficient products through product design and innovation to reduce carbon footprints of the product and thus mitigate environmental impact.

Foxconn's defect rate of motherboards is less than 1%. It offers other products that supplement the motherboard such as Barebone, Nettop and Chassis, among others.

Role of Channel

The channel has so far been perceived as box-pushers. But the times have changed, and this unsung hero is actually at the forefront now. Simmtronics says that about 90 per cent of its motherboard sale happens through channel. The company has 18 offices in India, and a huge reseller channel, and major OEM partners positioning their motherboards.  

Indrajit Sabharwal, Managing Director, Simmtronics Semiconductors Ltd.

Indrajit Sabharwal, Managing Director, Simmtronics Semiconductors Ltd., said, “The Indian market plays an important role in our global business strategy, and the channel partners play a crucial role in the sale of our products. Simmtronics recognizes the need to reward its performing partners and, from time to time, Simmtronics finds new ways to reward their distributors, dealers and resellers to motivate them to perform even better.” 

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Sunil Grewal, Sales Head - India, Gigabyte Technology India Pvt. Ltd.

Gigabyte India also acknowledges that most of its motherboard sale in India is through channel, which is over 90 per cent. The company is targeting to sell over 8 million motherboards in India during 2011. Thus, understanding the significance of channel, the company continuously keeps on conducting exciting incentive schemes, one of which is Gigabyte Value Partner Programme (GVPPs) for the Value Partners. Sunil Grewal, Sales Head - India, Gigabyte Technology India Pvt. Ltd., elaborates, “We have a programme called Gigabyte Channel Incentive Programme (GCIP) for launching, monitoring and ensuring channel sales promotion. We nominate partners as Premium Partners and Value Partners in specific - be it location-wise or region-wise. Our channel policies are designed after taking into account location-wise needs and strengths. Our current focus is on non-metro and emerging markets.” 

Grewal further added, “In 2011, we are focussing more on channel building, profit and education on new platforms. We expect channel partners to understand and adopt new technologies and platforms as soon as possible to take their maximum advantage.”

At the same time, Intel is also as committed as ever to the channel, which is strategic and important for the success of Intel's business. The company started a dedicated channel programme way back in 1995. 

R. Ravichandran, Director of Sales,           Intel South Asia

R. Ravichandran, Director of Sales, Intel South Asia, said, “Given that the Home and SME segments form a majority of the PC market, the channels will remain the most critical last-mile touch point in order to deliver not just technology products but innovative and customized solutions to consumers. The channel has consistently led markets in new technology transitions and we work very closely with the channel community across several aspects including training and enablement as well as other avenues of growth.”

Vinay Shetty,   Country Head,   Component Business,           ASUS India

ASUS's India market size is approximately 3 million for motherboards, excluding OEM and branded PCs. The sale of 90 per cent of its motherboards happens through channel in India. Vinay Shetty, Country Head, Component Business, ASUS India, opines, “Our network of channel partners is very crucial to our success. We have always been open to feedback from our partners and have always focussed on listening to what they have to say. ASUS Business Connect initiative started at the beginning of the year where we have installed Skype videophones in 324 partner locations in India in the C, D and E class cities to further improve communication with our partners. This is our best effort in this direction so far, even though it is targeted at certain privileged partners who are doing good business for us. We have already made an investment of Rs.5.1 million towards it.”

Anish Rahman, Sales Director, Middle East - India - Africa, Foxconn

Foxconn attributes a considerable share of its motherboard sale to channel. Anish Rahman, Sales Director, Middle East - India - Africa, Foxconn, said, “Channel contributes for 28% sale of Foxconn motherboards in India. The company understands how the channel has evolved - its impact on consumers and the people who work in the computer industry. A business group of Foxconn, Channel Service Division (CSD) provides channel solutions to customers around the globe. Foxconn's Channel Service Division (CSD) is committed to providing reliable, high-quality products to all its customers - large and small. It understands how the channel has evolved - its impact on consumers and the people who work in the computer industry.”

In the end...

Some of the top-bracket companies which are into motherboard business attribute the success of their sale to channel. Channel is instrumental in scripting the success story of the motherboard industry. And, the principals see it continuing in the future also.