Translated Explainer Video Script
If you‘ve been around long enough you’ve heard of Intel’s Channel. It’s a network of over 200,000 small and medium resellers, in 150 countries who distribute and sell Intel hardware.
And they’re good at it: 50% of all global PC Sales and billions of dollars of Intel’s revenue come from this group. They’re a powerful force.
So someone saw an opportunity and said, “Let’s have the Channel sell McAfee software. The potential is huge!” But the idea was actually radical, if not risky.
You see, every process, every sales goal and employee bonus across the globe is designed to sell Intel hardware. Hardware is the priority, not software. Period. And for this reason, initial attempts proved fruitless.
But the idea was unshakeable. The revenue potential was real if Intel’s Channel could be navigated correctly. So, the search began for adventurers, people who could work in uncharted territory, had new ideas and could overcome tons of obstacles for the McAfee cause. And they would have to do it above and beyond their daily jobs!
Soon this small team of rugged entrepreneurs presented their vision to Renee James and other executives, they approved it and our team was on their way. To be successful, a Channel specific McAfee product had to be created from the ground up. So, Intel’s Product Development and marketing teams were called in, then came McAfee’s teams.
One by one, different teams brought their expertise to the table. Each helping to propel this effort forward. We’ve never launched a product faster, yet it didn’t take long to encounter complex problems that needed thoughtful and innovative solutions.
For starters, Intel’s CPU Pricing is the same across the globe, but software pricing varies in almost every country. This had to be addressed along with every tax, trade and customs issue that came with it. Then distribution conflicts between Intel and McAfee arose. This had to be fixed. And the obstacles kept coming…
Some countries needed virtual keys. SAP doesn’t know how to handle virtual keys…
The scratch off material for software keys wasn’t scratching off!
It was discovered multi-products were required to compete. So more product were created along with all the marketing collateral…
Every time obstacles appeared this team found a way to innovate, create or fix their way around them. Yet with all the effort, there were very few sales?! Something was still missing.
Then the “ah-ha” moment happened:
It was the realization that the lowest priced McAfee product, a nine dollar sale, can make Intel a100 dollars through yearly license renewals. Plus, the margins for software are much better than hardware !
So a Revenue Share plan was created for the Geos, distributors and resellers. Sell McAfee once, then sit back and let the money roll in year after year. This grabbed the Channel’s attention.
And then it happened. The Channel responded in a big way by selling 500,000 units! 500,000 software sales! But this team wanted more.
As a result of everyone’s hard work, Intel and McAfee are breaking new ground! Over 25 million boxed CPU’s sold now contain a free McAfee trial and with it the potential to unlock significant renewal revenue!
Yet, the heart of the story isn’t about units sold, the innovations or the rev share plan. It’s about the 100s of people, 20 plus groups, and 6 geographies that transformed a hardware centric Channel into a software selling machine. They accomplished it in only nine month time, significant because each one still had their regular jobs to attend to. Without each of them, this could not have been possible. And because of their efforts. the Channel is ready for a new era of Intel McAfee integration.