Intel Builds SaaS Cloud across Europe

Jan.29.09 | About: Intel Corporation (INTC)

A small Canadian software company is helping Intel Corp. (NASDAQ:INTC) to launch a software as a service (SaaS) platform that will soon blanket Europe, Intel confirmed to me earlier today. The initiative could give Intel much-needed SaaS experience and will likely drive demand for Intel's vPro hardware across Europe.

The European SaaS initiative involves an emerging Intel platform called Multi-Site Director. The SaaS platform is built upon so-called managed services software from N-able, a privately held but fast-growing software company that I track on MSPmentor.net.

Intel's strategy for Multi-Site Director is simple but compelling. The SaaS service targets IT consultants and technology resellers who want to remotely manage customer networks. Using Multi-Site Director, those technology consultants can remotely monotor, optimize and troubleshoot customers' PCs, laptops, servers and other network devices.

Now here's the big twist: European technology consultants will pay Intel a flat monthly fee to use Multi-Site Director. So, Intel potentially wins on two fronts:

  1. As Multi-Site Director's installed base grows, Intel will generate more and more recurring revenue -- similar to Salesforce.com's business model.
  2. Intel's hardware, particularly the company's vPro technology, is optimized to work with Multi-Site Director. As a result, it's a safe bet Multi-Site Director's users will recommend the latest Intel hardware to their customers.

Intel's Multi-Site Director initially targets the Unitied Kingdom and Germany, but the hardware giant plans to blanket all of Europe with the service by late this year or 2010.

Can Intel conquer the world of SaaS? The Multi-Site Director initiative in Europe may provide some early answers.

Stock position: None.