Advanced Platforms

New technology is the big news in the custom-built computer segment this year. On the portable front, partner-friendly vendors are going out of their way to help custom builders create whitebooks. On the desktop side, systems builders are going to be gearing up for a new form-factor--Intel's BTX, for Balanced Technology Extended.

Not to be forgotten, wireless is taking off, too, with Intel launching a next-generation version of its Centrino wireless platform, which brings enhanced audio and video features to mobile systems (see "Centrino Makes Whitebook Play").

Having slowly emerged from the shadow of its white-box desktop cousins, whitebooks are expected to be a nexus of activity for systems builders.

"Whitebooks were a huge success for Intel last year," says Steve Dallman, Intel's director of North American distribution and channel marketing. "We almost doubled our shipments of mobile processors in North America last year. In fact, every quarter for the last four quarters set a record."

This year, that demand is sure to continue, Intel predicts. Consequently, custom builders are asking themselves how they can get in on the party. With margins for notebooks tighter than ever, and with more vendors fielding complete laptop platforms, the smaller VAR might assume there's no wiggle room to participate. That reseller would be wrong.

"The whitebook market is a tremendous opportunity for systems builders, particularly those who are already building white boxes today," says Mark Walker, notebook product marketing manager at Seagate. "It's an opportunity for them to create a new stream of revenue."

Indeed, whitebook builders are poised to reap the benefits, even if they're small-volume players. That's because vendors are launching a number of programs specially tailored to their needs.

Intel has been working hard to round up vendors that can put together whitebook "shells," which contain the rough guts of the machine, and typically a case, processor, cooling solution, motherboard and hard drive. To put together such shells, Intel has created the Notebook Systems Innovation Alliance, with members such as AOpen, Asus, Compal, Quanta and Wistron, among others.

Intel is also working to provide builders with white papers and technology guides they can access to get help with their efforts. "It boils down to a lot of channel training on how to put together a whitebook," Dallman adds.

For VARs looking to jump-start their efforts without a lot of fuss, a must-access resource is whitebookbuilder.com, a site created by Seagate that features a Web tool with tips on building a variety of preconfigured or roll-your-own models.

"We are showing the systems integrator and the small mom-and-pop-type shop how they can be successful and profitable in this market," Walker explains. Some 5,000 VARs have already registered at the whitebook site.

Of course, Seagate isn't a neutral observer in the whitebook game. It's primping for its two-and-a-half-inch Momentus 5400.2 hard drive, which it is offering at a discount to systems builders.

Nevertheless, the site is broad-based, complete with tips and tactics on the most fruitful areas to aim one's whitebooks so that VARs can stay away from the entrenched competition.

"If they're going out and trying to compete in the sub-$1,000 notebook market, they're not going to win because it's a very cost-sensitive market," Walker says. "Through our Web tool and through our white papers, we're showing them the market segments that are beginning to adopt whitebooks; we're telling them where to sell them."

The most profitable segment to focus on, Walker says, is whitebooks priced above $1,000. (In 2004, less than 10 percent of the notebook market was sub-$1,000, according to Seagate.)

Indeed, picking a segment to sell into is half the battle.

"The big challenges are to find your niche and compete with the mindshare that Dell has established," says Steve Bohman, vice president of operations at Columbus Micro Systems, a custom builder in Columbus, Ohio. "It's easy to keep your customers; it's hard to find new customers."

As Walker sees it, the $1,000-plus arena is the best place for whitebook makers to start, since they'll be steering clear of selling against the low-price-point models offered by the likes of Dell. Working in this higher-priced segment also makes it easier for resellers to build better margins by engaging in upselling--pointing customers toward more memory, a faster processor or a better hard drive.

Cool And Quiet

Away from the whitebook segment, there's also activity of interest to the custom builder on the desktop side. There, the latest twist is BTX, Intel's new quiet motherboard specification, which changes the layout of components on the board to maximize cooling. With BTX, slower fans can be used, and the units run more quietly than today's ATX systems.

Intel is initially aiming BTX at the emerging "digital home" market where media-centric PCs are intended to serve as living-room entertainment centers. However, it's expected to quickly move into business applications, especially in high-end corporate settings and customer-interaction situations where the noise generated by today's PCs has become a turnoff.

Right now, BTX machines, on average, cost roughly $25 more to build than their noisier ATX cousins. However, as volumes rise, that price differential could come down quickly.

"I hope BTX takes off to the point that it doesn't result in a huge cost premium," Columbus Micro's Bohman says. "If we can offer BTX for not too much of a premium by May or June, then we will be selling BTX systems into schools."

But BTX might soon offer systems builders a big sales opportunity beyond the home and education markets.

"We anticipate that there's going to be a larger uptake on the commercial side in late 2005 and early 2006," says Craig Randleman, BTX program manager at Intel. He sees businesses moving to BTX as part of the normal refresh cycle under which they replace aging PCs. In Japan and Europe, there's already stronger interest in BTX in the commercial sector than in the home market, according to Randleman.

For custom builders, the good news is that putting together a BTX box needn't be any more difficult than completing a traditional ATX system. The most important ingredients are a chassis and motherboard that comply with the BTX specification.

Noticeably different, however, is the metal and plastic that surrounds the processor. The traditional heat sink, which snaps over the CPU, is replaced with what Intel calls a thermal module assembly.

"It's significantly larger than a typical ATX processor heat sink," Randleman explains. "It comes with a duct or shroud for the fan, and a heatsink assembly all together."

To get systems builders started, Intel will begin by shipping building blocks for desktop systems, including boxed motherboards and Pentium 4 retail boxed processors complete with BTX-compatible thermal solutions. Among third-party vendors, there's also a growing support infrastructure for the new form factor. To list just a few, BTX motherboards are available from Asus, FIC, Foxconn, Gigabyte, Mitac and MSI. Cases or chassis are offered by the likes of AOpen, Chenbro, Evercase, Thermaltake and Yeong Yang. AVC and TaiSol sell cooling solutions, and FSB markets a BTX-compliant power supply.

One twist that builders should be aware of is that BTX boxes are a tight fit.

"Because a small system is inherently packed with stuff, it's not as easy to assemble as a larger tower system where one has a lot of room," Randleman says.

For builders looking to learn more about BTX, Intel will offer training to VARs as part of its semiannual Tech Solutions road show. Finally, Intel hosts what it calls a BTX channel resource center on its Web site at www.intel.com/go/btx.