Let’s learn from the Taiwanese: Atul Vijaykar

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The entire IT industry has been banking on government departments and

infrastructure development for the much needed one time boost. Intel has been

playing some pivotal role in this area too. Though we are now seeing more and

more departments talking about computerization, do you think the present level

of interest among the decision makers is enough to provide the boost and create

demand? What is Intel’s role here?



I will answer your question in two parts. One is from the broader infrastructure
standpoint. The one thing I will ask from the government right now is that it

should accelerate the privatization of telecom infrastructure, because that is

the single biggest hurdle we have today. Instead of looking at how to maximize

DoT’s or VSNL’s revenues, we need to look at the country’s overall

welfare. That is the only way to quickly put a world class telecom

infrastructure in place. There is no way India can become an IT superpower,

leave alone an economic superpower, if we do not have world class telecom

infrastructure.

At the state level, there are at least half a dozen states that are

proactively using IT to streamline the bureaucracy and bring in more

transparency in government transactions. That is a very positive step.

Of late, Intel is positioning itself as an Internet company. One that has

the complete solutions to cater to the needs of the entire Internet economy. How

much this exercise has helped Intel in its bottomline?



This is very much a "work in progress." We have been working towards
expanding our product portfolio. It will take a couple of more years before you

see its tangible impact on our financials.

You have been instrumental in setting up the highly successful network of

GIDs across the nation. How do you look back at the GID strategy? What more

needs to be done in this area? The network has grown to such a proportion that

Intel does not seem to have any control over it now. It is it a program gone

berserk?



This program, targeted at the unorganized sector, has been successful in
developing countries, where this sector has a bigger market share as compared to

that in developed countries.

We are quite comfortable with the numbers. There is continuous screening

process. It is a large program. We believe that we are fairly in good control of

it. About a year ago, we launched Intel Authorized Solution Providers, who are

capable of developing solutions. It is true that most of these GIDs are box

movers, but those who have the capability, we train them to be IASP.

What needs to be done in the GID program? Do you plan to increase the

numbers?



No, what we will do is expand the IASP program. Now, we have about 50 partners.
By the year-end, we will increase it to probably 100. At the same time, we will

try to fine-tune the existing GID network. We may refresh the members and make

sure we reach out to more cities. Our goal is to reach 100 cities by the

year-end.

What is Intel Asia’s future strategy? Will it shift focus to its other

products in order to catch a market share in the Internet economy, now that you

have a virtual dominance in the processor market?



We are working much more closely with e-business solution providers. These are
the people who influence electronic business solutions. It is a very focused

program, providing them training and matchmaking with potential customers. We

will expand our venture capital program. All our investments are strategic in

nature. The focus clearly is on investing in companies that will expand and

accelerate the growth of the Internet in the country. We would work closely with

Internet Service Providers (ISPs), both at the national and regional levels.

Intel has made significant revenues from the region, thanks to the IT

revolution. However, what are the investments made by the company here? Why is

there a mismatch?



Intel’s India charter talks about three programs. There is market development,
there is engineering development and strategic programs. Strategic programs are

our venture capital and educational initiatives. About 6-9 months back, we

started doing engineering development here. You will see our investments here in

engineering development, both software and hardware, grow dramatically.

Just as I am an Intel executive, I am also an Indian. I am very pleased with

the support I got from the Intel management. There is nothing that I can look

back and say I did not get management support for this. Our CEO Craig Barrett is

coming to India in May (this interview was conducted before Mr. Barrett’s

visit). This is his fourth visit to India in five years. There cannot be a

better indicator of our commitment to India. The only thing that we chose not to

do in India is manufacturing. And I think the reason is that the infrastructure

is not up to the level.

Intel has been more than 85 per cent share of the chip market. What is its

strategy now, increase the market share further or sustain the current market

share? Don’t you feel it is tough to be at the top for long with such enviable

market share and then offload some of it to competitors? Has it reached the

threshold where it might have to lose some market share to its competitors? Is

it the beginning of the end of Intel seeing this kind of market share?



I tell you, every five years, there are talks that wow, our competitors are
finally getting their acts together and how long can you hold on to this market

share. We always had competition. But, I do not think we are going to concede

market share to our competitors.

Despite the huge market share, how does Intel manage to stay away from the

eyes of the Justice Department and avoid antitrust cases?



First of all, as a management philosophy, we have strong internal practices to
ensure that we do not in any way abuse the opposition in the market. We do

attract attention because of our size. From time to time, a couple of department

had investigated and we had come out clean.

What would your priorities be if you are made the chief of India Inc.?



As far as IT industry is concerned, I would accelerate privatization of the
telecom sector. It gets the government out of those businesses, which it has no

business to run. For example, it has no business running hotels. Thirdly, as a

country, we have to put in a lot more focus on agriculture and the agro

industry. We are not going to solve the problems of the country by just focusing

on IT. At the end of the day, IT accounts for no more than 10 per cent of the

population.

Any regrets or a feeling of job not completed?



The job is never done. At the same time, I do feel a sense of satisfaction. We
have got the infrastructure in place and I am very comfortable that Avtar (the

present Intel South Asia director Avtar Saini) will take Intel into the next set

of opportunities.