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With all the talk around tablets, how is your business around Ultrabooks? And, are we still on track to see touch Ultrabooks by the end of the year or early next year?
The product road maps we've seen from manufacturers include touch Ultrabooks. If it's not out immediately [with Windows 8], it will be a fast follower. That's ultimately where we're going. You don't need a tablet and a four-pound notebook, but you can have a 2.2-pound Ultrabook that takes advantage of solid-state drives, battery life, portability and Windows 8. We're very bullish on Ultrabooks. The feature set resonates quite well, and the price points are getting where you can get more competitive in the marketplace. The [price] premium is not what it once was.
As demand for Intel Ultrabooks grows, what impact will that have on notebooks? Will we see sub-$200 notebooks?
My personal opinion is most manufacturers recognize that selling products at those price points, other than a Black Friday scenario, is not a good long-term strategy. We'll still see value pricing. Netbooks would have got you there with a 10-inch screen and a low-capacity hard drive, but I don't see the traditional notebook hitting the sub $200 price point. You'll see some tablets at those price points. You'll have $300-$400 notebooks, step-up notebooks and then Ultrabooks.
D&H seems to have an increasing focus on servers. What's new in that space?
We're engaging there, particularly on an SMB server opportunity. We have a couple of proof points that show this is a growing category. Our resellers can clearly add value with the two Tier One OEMs that we position: HP and Lenovo. Lenovo in particular has really stepped up their reseller engagement with servers.
They got into the business with the IBM relationship, but they had some restrictions about what they could source in the U.S. That seems to have broken free, and now their offerings are broader. The price points they offer to resellers and technology is very compelling to market as well. For those resellers that want to build their own, we have the Intel Modular Server solution -- their answer to a white box solution.
Speaking of Lenovo, what do you think of their new relationship with EMC? Will that help your VARs?
EMC, you remember, a number of years ago bought Iomega. Remember the Zip drive? That was their claim to fame. Since that time, Iomega has become a good reseller product line for NAS devices. They have the USB hard drives, but they really leverage EMC technology [with NAS]. Anything sub $10,000, you don't find an EMC line -- you find Iomega. For Lenovo to be a strong server player, they need a storage component as well. Lenovo is now taking the technology lead in the Iomega portfolio. Where HP had its own storage solutions, Lenovo saw this as a best practice to start from scratch.