IS CENTRINO STILL RESELLER-FRIENDLY?

   Barebones notebooks have always posed an interesting supply problem to resellers. How do you service and maintain a shell made up mostly of proprietary parts and hope to compete with the prices of branded configurations? You don't. But there is a better way.

     A year and a half ago, you probably wouldn’t have come close to beating tier-ones. Even if you were able to build competitively priced whitebooks, there was no way to quickly replace a keyboard or inexpensively stock spare AC adapters just in case a piece of hardware failed. The tier-ones had you beat on volume.

     Those were the issues Intel wanted to solve with last year's Common Building Blocks (CBB) initiative. The Verified by Intel (VBI) program was also launched at this time as a focused effort to kick start the CBB initiative. The focus of VBI was to make sure whitebooks were easy to customize, easy to service, and based on the popular Centrino brand. CBB helped achieve those goals by promoting adoption of standardized specs for seven different components: hard drives, optical drives, LCD panels, batteries, keyboards, AC adapters, and the "top A" panels resellers use to brand their systems. VARs selling CBB-compliant notebooks could inventory common building blocks and replace a faulty component without sweating compatibility.

     When the CBB program first emerged, it was backed by ASUS, Compal, and Quanta, the three largest notebook original device manufacturers (ODMs) in the world. The trio unveiled several whitebook models each, totaling 11 configurations at launch. Back then, everything centered on Intel's Napa platform, which showcased dual-core processing, 802.11a/b/g wireless networking, and the 945 mobile chipset. Loaded with desktop-like connectivity, there was a lot to like about that first batch of whitebooks with predominantly interchangeable parts.

     Since its introduction, VBI has served Intel's purpose. Mobile platform vendors who used to sell proprietary shells with mismatched AC adapters and batteries that'd only fit in one notebook model are now leveraging lessons learned from the CBB initiative. With that mission accomplished, look for less VBI presence and messaging in 2008 while whitebook manufacturers blend their own ongoing innovation with the value of common building blocks.

A Shift in Strategy
     ASUS, Compal, and Quanta are still cranking out channel notebooks, according to Justin Whitney, North America mobile business development manager at Intel. Now the focus is on Intel's Santa Rosa platform, which centers on the Mobile 965 Express chipset, adds 802.11n wireless LAN technology, and introduces Intel Turbo Memory. However, each manufacturer's role in the channel has shifted slightly. For example, Intel wasn't seeing much North American demand for Quanta's shells. So rather than stuff the channel with Quanta notebooks and confuse customers, most of the building block-based systems you'll see come from ASUS and Compal.

A PLATFORM MESSAGE.  Intel's PM965 and GM965 chipsets lend the Santa Rosa platform a lot of very cool functionality, from high-end graphics to DDR2 memory support to Gigabit LAN.

     In addition, ASUS is putting more emphasis on its branded notebooks here in the United States. The company's branded line is rich in Santa Rosa-based systems, touching everything from ultra-portable designs with 13.3" LCDs to desktop replacements with 17.1" displays. Yet there's not a single Santa Rosa whitebook featured on its North American site. Do a little digging, though, and you'll find that ASUS is still very much active in the channel with three brand-new barebones whitebooks.

     So what's the holdup in getting those systems out to resellers who can turn the virtues of Intel's technology into attractive mobile workstations? According to Intel's Justin Whitney, supply simply can't keep up with the demand for Santa Rosa.
"We're experiencing more demand than we've ever seen from the whitebook channel market," says Whitney. "That goes hand in hand with the high demand we're seeing across the industry. Everybody is clamoring for the components to build Santa Rosa notebooks right now."

Santa Rosa Lives On
     Shortages aside, manufacturers such as Compal are able to get the components they need, build Santa Rosa-based whitebooks, and get them into the channel today. In fact, Compal's site lists five different configurations from which to choose. Two are particularly noteworthy: the ultra-portable JFT00 and the enthusiast-oriented IFL90. Both models blow right past the $699 packages that tier-ones pitch toward SMBs on a budget, setting benchmarks for performance and customization–two of the channel's strengths.

     The JFT00 sports a 12.1" WXGA LCD attached to a svelte little four-pound chassis. Don't be fooled by the notebook's size, though. Compal packs in a motherboard based on Intel's GM965 chipset and ICH8-M communications hub, supporting dual-core Core 2 Duo processors on an 800 MHz front-side bus. Two open SO-DIMM slots give you the flexibility to add as much as 4GB of DDR2 memory running at speeds up to 667 MHz. SATA connectivity, integrated HD Audio, Gigabit Ethernet, and an optional 2 megapixel camera further add to the compact JFT00's desktop-like value.

MORE RANGE, MORE PERFORMANCE. Santa Rosa notebooks support Intel's 802.11n card, which uses three antennas to boost reception and add performance to wireless connectivity.

     Best of all, Compal leverages Santa Rosa's most attractive parts, letting VARs really differentiate from some of the more spartan branded solutions. The JFT00's GM965 chipset has an integrated Graphics Media Accelerator (GMA) X3100 core able to accelerate, in hardware, all DirectX 9 and OpenGL 1.5 functionality. The same graphics core is also loaded with features that improve video playback on the notebook, on top of outputting through a 15-pin VGA connector. An open mini-PCIe slot takes your value-added 802.11a/b/g/n wireless card. And support for Intel's Turbo Memory technology lets resellers improve performance under Windows Vista without extra DDR2 RAM.

     Compal's IFL90 extends the same high-end functionality to a larger chassis with a 15.4" display. Centering on Intel's PM965 and ICH8-M combo rather than its GM965, the IFL90 relies on discrete graphics instead of an integrated core. Performance enthusiasts looking for smoking visuals will appreciate the NVIDIA GeForce Go 8600M with 512MB, which Compal uses to make gaming a reality on the road.

     Like the JFT00, the IFL90 supports Intel's Core and Core 2 Duo mobile chips on an 800 MHz bus. It takes a pair of DDR2 SO-DIMMs, capping out at 4GB of system memory. The IFL90 similarly works with the latest SATA hard drives and comes with built-in Intel HD Audio, a Turbo Memory slot, and all of the same networking capabilities as Compal's smaller Santa Rosa shell. There's no Intel GMA X3100 graphics, but given the IFL90's high-end configuration, potential customers are better served for more demanding 3D work by the NVIDIA graphics and plenty of RAM.

     ASUS's mobile solutions are a little harder to research, if only because ASUS doesn't actively market them. "We manufacture CBB-compatible whitebooks under the ASMobile brand, and Intel handles sales," says ASUS's Donald Leung. The company currently offers two models–a 14.1" configuration and a 15.4" shell–with a third 13.3" notebook in the works.

     Enthusiasts will most likely gravitate toward the S96S, based on Intel's PM965 Express chipset. While support for a wide range of Core 2 Duo processors and 4GB of DDR2 memory are pretty much par for the course, ASUS's adds a solid midrange discrete graphics module in the NVIDIA GeForce Go 8400. Santa Rosa-specific extras, such as Turbo Memory and 802.11n networking, give you flexibility, while ASUS's own touches, including a glossy 1280x800 display and custom thermal solution, help differentiate.

Beyond the Building Blocks
     The CBB initiative has been effective in accentuating one of the VAR's principal strengths: service. "The channel's biggest advantage, which will remain the biggest for quite a while, is going into an SMB with a service offering," says Intel's Justin Whitney. "Services help resellers differentiate, regardless of whether they're selling notebooks that cost more than what the branded folks are selling." Being able to take a notebook and swap batteries or upgrade to a larger hard drive extends big value to customers–especially business customers who don't want to lose their laptop for two weeks while it's under the knife at some tier-one's warehouse.

MORE SPEED FOR LESS. Intel Turbo Memory offers an easy, affordable way to accelerate Santa Rosa notebooks. The flash-based cache assists the hard drive and reduces the need for excess system memory.

     But we want to make sure that resellers are aware of the opportunities to make money in mobility outside of the standardized shells and interchangeable optical drives. Rather than compete on the basis of price with inexpensive volume designs, pick a handful of environments with specific mobile computing needs.

     For instance, GammaTech offers several rugged models that extend Santa Rosa's rich feature set in an innovative package. The company's new Durabook D15RS is a great example of turning Centrino technology into something unique. Built to take a beating, the D15RS' chassis is cast from magnesium alloy, which is 20 times stronger than the plastics commonly used in competing notebooks. Anti-shock mounting protects the LCD panel, hard drive, and optical drive from damage if the notebook is dropped. Even spills are a non-issue thanks to a sealed keyboard, touchpad, and buttons.

     Although the D15RS is clearly meant for field duty, where it'll likely be bumped around, the notebook's specs are far from primitive. A mobile Core 2 Duo delivers plenty of performance on an 800 MHz front side bus, and two DDR2 SO-DIMM slots take up to 3GB of system memory. As with most other Santa Rosa notebooks, Gigabit Ethernet and SATA hard drive connectivity are standard features. GammaTech adds a TPM 1.2 chip to the mix for additional security and a 3G WWLAN option for connectivity on the go. There's also the option to add a Turbo Memory card and 802.11n wireless controller.

     Of course, business customers who need rugged notebooks expect to pay a premium for the engineering and testing that goes into manufacturing more durable chassis. In the D15RS' case, they're also getting compliance with Military Standard 810F–a 539-page Department of Defense document guiding environmental design and testing. That's a pure channel play if we've ever seen one. GammaTech does offer fully integrated notebooks based on the D15RS platform from its site. However, resellers working directly with SMBs have the upper hand here. If you're installing a server in a branch office and notice a line of company trucks with engineers going in and out, imagine the potential benefit from notebooks as rugged as their diesel F350s.

     At the other end of the spectrum, performance enthusiasts want the cream of the crop and are willing to spend a lot of money to get it. Give those customers something unique and they'll forget all about branded systems. Santa Rosa goes a long way toward bridging the performance and functionality gaps that once separated workstations and notebooks. But ASUS claims its C90, based on the desktop 945G chipset, goes even further.

COMING SOON TO SANTA ROSA. In early 2008, Santa Rosa notebooks will support Penryn, the 45nm Core 2 Duo spin, featuring 6MB of cache, faster clock speeds, and more power savings.

     The whitebook's LGA775 processor socket accommodates Core 2 Duo chips right up to Intel's dual-core Core 2 Extreme X6800 at 2.93 GHz (and on a 1066 MHz bus). Two SO-DIMM sockets take 3GB of DDR2 memory. An available PCI Express slot hosts an NVIDIA GeForce 8600M GT MXM graphics module capable of great gaming performance. ASUS continues piling on the extras in a bid to win over the power users. Gigabit Ethernet, SATA, a 2 megapixel camera, an 8-in-1 card reader, eSATA, HDMI output, fingerprint recognition, and HD Audio all round out an extremely rich specification sheet that reads more like a dream desktop PC recipe than a mobile system set at mainstream price levels.

     Clevo is another prolific name in notebook performance. The company's 17" M570RU pulls your customer back into the Santa Rosa platform with Intel's PM965 chipset and mobile Core 2 Duo processor support. According to Intel's Justin Whitney, the M570RU is the first Santa Rosa shell ready for a mobile Core 2 Extreme X7900, but it likely won't be available until late December of this year. Watch gamers perk up when you offer the exclusivity of a 2.8 GHz chip with 4MB of shared cache. Clevo's design can also be purchased with an NVIDIA GeForce Go 7950 GTX–one of the fastest mobile GPUs currently available. From 802.11n to DVI output to Turbo Memory support, the M570RU smartly combines the best elements of Santa Rosa with desktop-like specs.

The Crystal Ball Says…
     Before Intel launched the VBI program, the channel's efforts in mobility were sporadic and disorganized. We had already talked about selling barebones notebooks, but empty shells and the components they comprised were hard to standardize on and promote.

     VBI was the war cry that rallied resellers around Centrino's value. When CBB promised near-universal parts that would address the most common failure points, we saw a way for the channel to cut costs and improve one of its biggest strengths: expedient service. What end-user wouldn't get excited about a five-minute notebook service turn-around? At the same time, there were very few SKUs to choose from among the first wave of VBI models, which made it hard for system builders to differentiate their solutions. Today's landscape, characterized by common batteries and optical drives, is much more receptive to innovation.

BANK ON VISTA HARDWARE.  With the advent of Microsoft's Windows Vista, you can upsell hybrid hard drives such as Seagate's mobile Momentus 5400 PSD with onboard flash memory.

     So where do whitebooks go from here? Intel is all too aware that common building blocks were an essential move, but the channel still needs more help if it's going to compete and thrive. VBI synchronized the interests of ODMs and system builders looking for a way to more effectively compete against tier-one vendors. But even under VBI, you weren't building whitebooks the same way you built whitebox desktops or servers. You depended on an ODM's chassis, motherboard, graphics module, and cooling solution. We're convinced that the next step involves decoupling all of those components.
     If you were to poke around for five minutes on Google using the right keywords, you'd find a presentation given at CeBIT earlier this year by one of Intel's European partners. That presentation lists the specifications for an Intel-designed mobile motherboard, the MGM965TW (code-named "Tawas"), which leverages Santa Rosa's best features in a design that could, if the stars all align properly, become the foundation for a future form factor, a la ATX on the desktop. Intel's MGM965JB ("Jackson Bay") mobile motherboard is less of a secret and is already the centerpiece of Equus Computer Systems' latest BTO whitebooks.

     Imagine being able to take a mobile motherboard, an empty notebook chassis from a vendor like Antec, standard SO-DIMM memory, a Seagate hybrid hard drive able to take advantage of Vista ReadyDrive, and piece together a notebook the same way you'd build a whitebox desktop. Today's rugged designs from GammaTech and the performance configurations from ASUS are still several steps away from that point, but as Intel pushes toward the mobile vision jump-started by VBI, you can see we're getting closer to that whitebox-type equality that will neutralize much of the tier-one advantage.