Intel Partners: CEO's Vision For Company In The Cloud, Data Center Is 'Valuable For The Channel'

Partners applauded after Intel CEO Brian Krzanich on Tuesday laid out the company's future as a cloud, data center and connectivity source as it moves away from dependence on the PC market.

"We look at this, and we say 'finally,' " said Donna Shepard, senior vice president of Dallas-based M&A Technology, an Intel partner. "It's refreshing as a partner to see Intel now heading in the same direction they were telling [the channel] to head in for years. They are finally pushing in a direction where they want to own the IoT market and beef up their server platforms for the data center."

A week after Intel said it will cut 11 percent of its workforce as part of its initiative to "intensify focus in high-growth areas,’ Krzanich wrote in a blog post that Intel was transforming from a PC company to a one that powers the cloud and connected computing devices.

[Related: CEO Defends Apple's Future Against Skeptics -- Despite First Revenue Drop in 13 Years]

"Intel is uniquely positioned to power the cloud and drive the increasingly smart, connected world," Krzanich wrote in the blog post Tuesday. "We see tremendous opportunity in the growth of this virtuous cycle -- the cloud and data center, the Internet of Things, memory and FPGAs [field-programmable gate arrays] all bound together by connectivity and enhanced by the economics of Moore's Law -- which will provide a strong and dynamic future for Intel."

Intel has good reason to focus on data center and IoT: The company last week posted first-quarter results for its data center segment, which grew 9 percent over the same quarter the year before, as well as its Internet of Things segment, which grew 22 percent over the year-earlier quarter.

Meanwhile, Intel also lowered its PC market expectations, saying it sees the market declining in the high single digits in 2016 -- more than earlier expectations.

Shepard, whose company has two data centers, said the company's quickly evolving culture is all about "streamlining for profitability."

"In the end, Intel is doing what we're all doing, but on a larger scale," she said. "They're cutting expenses, bringing in new young blood and streamlining for profitability. The way Intel is moving forward is loud and proud."

Kent Tibbils, vice president of marketing at ASI, a Fremont, Calif.-based Intel system builder, said Intel's tightened focus is critical for the channel, especially because his company is seeing increases in sales of servers as well as the components used in the integration of these systems -- such as SSD, memory, cases, power supplies and processors.

"I think this is very valuable to the channel and is really a continuation of Intel's focus in these segments," said Tibbils. "The data center and cloud have been driving growth in the computer or technology industry for some time. Fortunately, with the growing demand for more data centers to support the expanding number of connected devices, these segments will be strong performers for a very long time."

As the Santa Clara, Calif.-based company shifts its strategy, two top-level executives are leaving the company: Kirk Skaugen, Intel's senior vice president for its Client Computing Group, as well as Doug Davis, general manager of Intel's Internet of Things Group.