HP Connect rolls on - and upmarket
There can now be no doubt about it, HP's new Connect dealer
programme is slowly but surely shifting the company's PC and
peripherals range up market.
As this issue of Dealer Info goes to press, HP has revealed that
Acuma, Basilica, Computercenter and ICL have all achieved HP
Connect Premier Partner status. The four reseller operations join
Hamilton Systems and Morse Data at what HP calls a `best in class'
reseller level.
Despite the fact that HP has signed up more than 1,200 resellers to
the Connect programme, it's worth noting that there are an
estimated 4,000 mainstream PC dealers out there in the UK, and
roughly the same again in terms of specialists and stationery
chains, such as Ryman. Ian Whittaker, HP's UK general manager, sees
HP Connect as keep the dealer channel fit for its purpose -
`selling, servicing, supporting and implementing of solutions for
the customer.'
`Partners will develop more sales leads than resellers not in HP
Connect and they will have better relationships both with HP,
through increased training, sales incentives and better
communication and their customers through the ability to offer
knowledgeable, trained
service and support,' he explained.
That's all very well, but the real fact is that the number of sales
outlets stocking HP PCs has fallen since HP started the Connect
scheme late last year. And it's a tough market out there - this
writer has just sourced a branded 400 MHz PII system with 64MB of
RAM, 40x CD-ROM and a leading edge graphics card, for 600 pounds.
HP will live to regret the fact that it's Connect programme will
alienate its mainstream channel. Value-added is all very well, but
sales volume will, we predict, suffer.
Win 98 + USB = less peripheral returns
Peripherals used to be good profit turners, especially in the
business reseller end of the market. Now prices are trimmed to the
bone, and competition in the channel is intense. But customer hand
holding and returns due to problems remain a lot higher than boxed
PCs.
Now the good news is that a survey carried out by Entegra
Technologies, the Universal Serial Bus (USB) specialist headed by
ex-US Robotics/3Com guru Clive Hudson, claims to show that the USB,
in conjunction with Windows 98, will reduce dealer returns.
Entrega's survey amongst 100 dealers showed that awareness of USB
among the dealer community is high, with 80 per cent of those
questioned being familiar with the technology and 60 per cent
claiming that it would result in less returns in peripherals.
According to Hudson, the survey has provided Entrega with a
valuable insight into attitudes and perceptions and it would appear
that awareness of USB and its benefits is on the increase.
`Dealers consider it a user-friendly technology that enables the
consumer to take control, with no need for prior experience of
installation or configuration. All of which is great news for
dealers,' he explained.
Say hello to the OmniBook 900 series
HP may be upsetting its dealer channel, but it does still come up
with some good products, as the firm has just taken the wraps off
its OmniBook 900 series. The OmniBook 900 notebook retains the key
selling point of having the same size as a sheet of notebook paper
- slightly larger than the Toshiba Libretto - but has the
distinction of being just 3.2 cm in
profile. According to Paul Craddock, OmniBook product manager with
HP, the 900 series was developed to extend the appeal of the
machines into the professional end of the market. `By addressing
the needs of both highly mobile professionals, who require the
ultimate in power and portability, as well as IT directors, who
need easy manageability and shared accessories, OmniBook 900
underscores our commitment to provide a comprehensive mobile
computing solution,' he explained.
Despite its small size, the OmniBook 900 hides a Pentium II
processor inside, and starts at around 1,700 pounds.
RBR unveils Cisco Superstore
RBR Networks, the networking distributor acquired for 25 million
pounds by Datatec of South Africa late last year, has opened the
world's largest logistics centre dedicated to Cisco equipment.
Located at RBR's Cirencester headquarters, the 1,700 square metres
purpose-built centre will service the distributor's UK dealership,
as well as allow RBR to push out into Europe.
According to Rory Sweet, RBR's managing director, the
state-of-the-art warehousing and despatch operation features a
large pre-staging area for module pre-loading and configuration.
This, he explained, enables RBR to pre-configure equipment to meet
customer demands.
`Cisco sales have gone from strength to strength in the UK over the
last year, and distributors are falling over each other to get
stock into circulation,' he said, adding that the opening of the
centre reflects RBR's successful Cisco-only sales model.
SMP launches Points of Service scheme
System Management Partners, a dealership that services the high end
corporate market, has started a technical support and loyalty
scheme called Points of Service. The aim of the scheme is to allow
IT managers to plan their annual external technical support budget,
as well as rewarding loyalty. The unusual aspect of the scheme is
that it allows companies to build up a credit of IT support points,
which they can cash in for support services as necessary.
The programme covers a range of standard services but also offers
companies the additional resources necessary to cope with periods
of high demand, holiday cover, or to meet project delivery
deadlines. This, the firm claims, allows SMP to offer additional
technology
skills at a fraction of the cost of contractors.
On signing up to the scheme, customers are given a menu of options,
each of which can be charged at a daily or half-daily rate. When
support is required, customers simply call the SMP toll-free number
provided on the user service card, quote their personal ID and
schedule time to speak to one of SMP's engineers. Customers can
access the Points of Service system over the Web to see their
monthly points statement. The cost of each support call is reduced
as more points are purchased and the number of credits in the
customer account increases.
IBM shifts to two-tier distribution for AS/400
As IBM unveiled its new AS/400 series of minicomputers in early
February, the company announced a significant change for its UK
reseller business for the machines. Instead of a flat one-tier
distribution model, Big Blue is moving to a two-tier plan. The
changes bring the AS/400 channel into line with IBM's existing
netfinity NT server and RS/6000 dealer arrangements, allowing
mainstream dealers to source mid-range servers as normal.
The new programme will, however, give resellers equal access to
AS/400 and PC server product and technical information, enabling
them to offer customers a greater choice, faster delivery and
better price performance.
PC shipments recover strongly in Q4
Figures just in from Context, the London-based IT research firm,
show that Q4 of 1998 was a healthy period for PC sales, both in the
UK, as well as across Western Europe.
According to Context, during 1998, PC sales soared 21.1 per cent
across Western Europe as a whole, with Compaq retaining its number
one sales slot, and IBM slipping back into number two position. In
the business sector, the firm says that the IT spend of large
corporations remained high due to the Year 2000 (Y2K) problem and
implementation of Europe's new currency, the Euro, all coming
together and contributing to the strong overall market growth.
Performance in Europe's three largest PC markets continued to be
good, with France leading with a growth rate of 23.9 per cent,
followed by Germany at 21.2 per cent and the UK with 18.6 per cent.
On the vendor side, Compaq retained the top European slot with 16.9
per cent market share. Dell slipped to third place with its 7.3 per
cent share overtaken by IBM with 9.3 per cent. HP, meanwhile,
regained its fourth position with 5.9 per cent share, closely
followed by Packard Bell with 5.8 per cent. According to Context,
Compaq clearly maintained its leadership position in the European
PC market. With shipments of 1,485,097 units in Q4 98, it achieved
a 26.6 per cent year on year growth rate, higher than the European
average.
Growth rates throughout the top three countries were above average,
reaching 19.8 per cent in the UK (257,799 units shipped), 36.8 per
cent in France (252,528 units shipped) and 36.4 per cent in Germany
(194,945 units shipped).
Hewlett-Packard, 0044-990-225547 (GB), http://www.hp.com;
Entrega Technologies, 0044-118-965-7751 (GB),
http://www.entrega.com;
RBR Networks, 0044-1285-647001 (GB);
SMP, 0044-1276-477334 (GB), http://www.smp-europe.com;
IBM, 0044-1256-344689 (GB), http://www.ibm.com;
Context, 0044-171-543-8000 (GB), http://www.context1.com