If you're reading this site, you're almost certainly familiar with the wide-reaching "Intel Inside" branding. Intel Inside isn't just a fancy logo and a slogan, though. Since 1991, Intel has operated a "co-operative marketing program" under the name, and through the program Intel funnels a lot of cash into the industry by helping vendors cover advertising and marketing costs. Now, CRN is reporting that Intel intends to cut funding for the program by some amount between 40 and 60 percent of its existing budget.
According to CRN's unidentified sources, the cuts are being made so that Intel can move the funds to "other groups within Intel that aren't channel-specific or PC-centric." The site then goes on to say that the funds will be put to work reinforcing Intel's position in the datacenter. Intel apparently confirmed to CRN that the program would be altered, but did not elaborate on the degree or depth of the changes.
Cuts to Intel's co-marketing program will almost certainly have wide-ranging effects on the industry. CRN's sources claim that since Intel Inside's membership was based on volume, the largest cuts will be hitting the largest OEMs, and that smaller sellers will be less affected. Given that, we don't think most TR readers should be too worried. Still, vendors will likely have to reduce advertising spending, raise prices, or make cuts in other areas to make up for the loss of Intel's cash infusion.