Intel Partners See Intel-Microsoft Windfall In New Surface Products

Intel system builder partners are applauding the Santa Clara, Calif.-based company's processors that are powering new Microsoft Surface products, saying the OEM blockbuster partnership will serve as a major boost to Intel's mobile segment.

Intel's new sixth-generation 14nm Skylake processors, launched in September, are at the heart of Microsoft's new 12.3-inch Surface Pro 4 tablet and 13.5-inch Surface Book. The Surface Pro 4 comes in Skylake's M3, i5 and i7 editions, and offers a boost in performance and more efficient power consumption.

"The longstanding 'Wintel' partnership, and tight relationship between Microsoft and Intel, has always been at the core of innovation in the personal computing world," said Douglas Grosfield, president and CEO of Xylotek Solutions, a Cambridge, Ontario-based Microsoft partner. "The latest hardware offerings from Microsoft are, frankly, not just an evolution, but the Surface Book is a revolution and a huge step forward in the Microsoft hardware strategy and road map."

[Related: Partners: Microsoft's Surface Book Puts HP, Dell, Lenovo On The Hot Seat]

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Intel's new processors, which Intel says are scalable across multiple segments including mobile workstations, notebooks, 2-in-1s and small form factors, promise two times better productivity at one-fourth the thermal power.

Intel worked closely with Microsoft to ensure Skylake was designed to provide new, optimized experiences on the Surface such as instant-on capabilities and longer battery life, video conferencing, and HD photos and videos -- all enabled by Intel’s integrated image signal processor. The Surface Pro stylus also runs on Intel technology, using Intel Precise Touch Technology as its integrated touch controller.

For Intel's part, the company is using its relationship with Microsoft to expand its mobile segment, where Intel has seen momentum. The lucrative 2-in-1 market has grown by more than four times since 2013 and has seen average prices drop from $900 in 2013 to $650 today, according to Intel.

"Our relationship with Microsoft has never been better," said an Intel spokesperson. "Intel partnered with Microsoft to ensure the best Windows 10 experiences are delivered on sixth-generation Intel Core-powered systems and devices. Intel’s platform innovations together with Windows 10 create new experiences that help people have more secure PCs while removing the hassle of remembering and typing passwords, manage their lives without ever having to touch a keyboard and mouse, enjoy stunning 4K video content, and enable new levels of performance. It’s an exciting time to buy a new PC."

While Intel's channel applauded the vendor's efforts in the mobile space, Microsoft resellers are angered by the company's direct attack on OEMs and channel partners with its new Surface Book laptop.

’I really think that Microsoft is biting the hand that has fed them for many years, with very little volume upside. ... I don't see the industry sitting still and continuing to support Microsoft while they compete head to head with us,’ said one Intel and Microsoft system builder partner, who wished to remain anonymous. ’We think it's just one more step into the blurred space between Microsoft as an industry standard OS supplier and Microsoft as a direct competitor to PC companies that are their biggest customers. … It's a troubling trend for Microsoft to continue to push into the space their traditional customers have built.’

’As for Intel, I understand they are going to support PC hardware, and I don't see it as a conflict for them to provide the power to this device,’ he added.

PUBLISHED OCT. 6, 2015