Rick Dwyer

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Changing the Game to Secure Your
Future Evolving In A Global Market

• Rick Dwyer
• Vice President, Sales and Marketing
• General Manager, Embedded Sales Group

Material in this presentation does not represent
the strategy or views of Intel Corporation they
are the independent opinions of the presenter
Rick Dwyer.
2
Agenda

• The Opportunity For Growth
• The Semiconductor Market
• The Mature Market Challenge
• Opportunities For Change

Material in this presentation does not represent
the strategy or views of Intel Corporation they
are the independent opinions of the presenter
Rick Dwyer.
3
Why Am I Excited To Be Here Today?
Number of Employees Per Firm
Number of Branch Offices Per Firm
Number of Firms
Number of Firms
Branch Offices Per Firm
Employees Per Firm
Manufacturers Reps are a formidable Business
Asset!
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Evolution of Our Industry
Phase 1 1960s ICs
Phase 2 1970s-80s Compute
Phase 3 1990s Internet
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Whats Driving Growth Today
Global IP Traffic
PB per Month
46 CAGR
Forecast
Source Cisco 
Internet Growth Continues
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Evolution of Our IndustryPhase 4 Everything
Connected
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By 2012 40M - IP Cameras shipping 22M -
Enterprise Printers  80M - Cars shipping  155M -
Telematics subscribers 30M - IP Media Phones 20M
- Home automation systems 85M - Residential
Gateways
Opportunity
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Semiconductor Technology Is THE Internet
Growth Enabler

• Worlds first working 22nm test circuits Intel
  continues to relentlessly pursue Moores Law and
  provide its benefits to end users.
• The test chip packs 2.9 billion transistors, at
  approximately double the density of the previous
  32nm generation, in an area as small as a
  fingernail.

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Industry Trends
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(No Transcript)
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Semiconductor Billings By Geography
Americas 2009 Revenue 15 of Global Revenue
Source Semiconductor Industry Association
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Rep Commission/Compensation Data

• Split Commission over 10 yrs.
• Local High Case 55
• Local Low Case 10
• (Source Interviews, Sep. 09)

• Commission for 08 (147 firms)
• 47 08 up from 07
• 30 08 down from 07
• 23 flat
• (Source ERA Comp Survey)

We All Know 09 Will Be Significantly Different
Than 08
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The Mature Market Challenge

• Market Forces Driving The Transition
• OEM OPEX CAPEX pressure
• Time to Market Competitive advantage
• Buy vs. Design decision
• OEM Value and differentiation Shifting from H/W
  to S/W in Many Cases

How do these shifts effect a Rep Firms value? A
Distributors value?
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Silicon Supplier
Silicon Distributor Manf. Reps
Original Equipment Manufacturers (OEMs)
End Customers
The Good Old Days
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Silicon Supplier
Silicon Distributor Manf. Reps
ISV
OSV
BIOS
Chassis
Eng. Services
Original Equipment Manufacturers (OEMs)
End Customers
How Is Rep Value Optimized In This Complex Flow?
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Are You Evolving To Meet The Needs Of Your
Customers?

•  
• Do you have a growth strategy?
• Are you deployed to reach tomorrows customers?
• Are you making the right line card decisions?
• Are you enabling your customers to make the right
  product decisions?
• Are you solving your customers problems?

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Challenge 1 - Globalization

• Does anyone expect a dramatic reversal of
  outsourcing?
• How does Globalization effect compensation going
  forward?
• How much collective bandwidth goes into tracking
  vs. selling?
• How do Mature Market Rep Firms prosper in a
  Global Market?

What actions can we/you take to begin to address
this issue?

• Is there value in ERA driving a Global Strategy
  across its member base?
• Could there be a collective investment by mature
  market Reps to proactively address the Global
  challenge?
• What are your thoughts on this?

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Challenge 2 Demand Creation

• Are the mature market Design Win engines
  optimized?
• Who is the predominant DW entity?
• Distribution? Reps?
• How much wasted energy and positioning goes into
  this debate?
• What redundancies could be minimized or removed?

Might There Be More Efficient Alternatives?

• Is there an opportunity for ERA Distribution to
  form a more strategic alliance?
• Is there a more efficient way to collectively
  fund Demand Creation resources?
• What are your thoughts?

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Challenge 3 Strategic Partnerships

• How many firms
• Have customers that now Buy vs. Design?
• Realize compensation selling at a higher Level of
  Integration vs. Components?
• Have a relationship commission stream that
  comes from ODMs or OEMs?
• Have a S/W vendor (O/S, Middleware, or
  Application Vendor) on their Line Card?
• Have a Professional Services or Design Services
  Principal on their Line Card?

Is it in your business interest to consider these
new relationships?

• Is your current Talent Pool structured to
  optimize your ability to offer your customers the
  Value they are shopping for?
• Should you be Strategically Aligning resources
  and partnerships around Solutions?
• What Are Your Thoughts?

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Summary

• There are no easy answers But there is no other
  option than evolve or become much less relevant
• The challenges require principles, Reps, and
  Distribution to work together to optimize the
  model We must tackle these challenges together.

Its time to take ACTION.
Material in this presentation does not represent
the strategy or views of Intel Corporation they
are the independent opinions of the presenter
Rick Dwyer.
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Thank you.