Cheap Pentium II
Margins are getting so tight, following the launch of the Pentium
III processor, that many off-the-page resellers will almost
certainly go to the wall this summer.
That's our prediction here in the UK, based on simple observation.
In January, we sourced a 350 MHz PII-based system, excluding
monitor, for 579 pounds plus VAT from Novatech
(www.novatech.co.uk), a mail order outlet.
That's around 200 pounds less than a similar branded system would
cost through a reseller. Today, the same machine is available for
499 pounds, with an improved specification.
Add a monitor for 79 pounds plus VAT and you have a machine that
matches an 800 pounds plus VAT price point from Compaq or HP. How
do I know this? Simple - I shopped around.
Most resellers we know admit privately that they can meet the
off-the-page prices of Novatech and others, including Insight
(www.sight.com/uk), but that pushes margins down below 50 pounds
per unit - hardly enough profit for a mail order outlet, let along
a serious PC reseller.
It's clear that dealers will have to either wake up to the
possibilities of value added profits or simple go to the wall. The
choice is that stark. If you disagree or want to know more, e-mail
me on sg@mail.com...
Novell extends reseller support hotline hours
Novell has taken the unprecedented step of extending its hotline
support hours from 8am to 8pm CET, a move that will benefit both
its resellers and its major customers.
The time extension is excellent news for the UK channel, as it
means that the hotline will now be open until 9pm UK time - giving
dealers a chance to work late to install software etc., for
customers requiring a next-day pickup, and sure in the knowledge
that, if something goes wrong, they have a hotline to fall back on.
According to June May, vice president for Novell EMA Technical
Services, the extension is also good news for network managers in
major businesses.
`Network managers are often only able to make adjustments to
complex infrastructures when their desktop users are offline.
Making the Novell European Support Centre even more accessible to
our customers and partners is part of Novell's overall customer
service strategy offering added value to all partners of its
clients,' she said.
The move is being welcomed by Novell resellers, since it is a
unique selling point for Novell products and services into major
companies.
HP launches new Brio series with MS-Office 2000
sweetener
Hewlett-Packard has unveiled its new range of Brio PCs with UK
street prices starting as low as 549 pounds. And to add the
machine's appeal, the firm is pre-installing MS-Office 2000.
According to HP officials, the new Brios come with additional
features that assist growing businesses with everyday tasks,
including the exclusive Brio Centre for on-screen support.
New to the Brio PC series is the Matrox MGA G200 graphics
controller with 8MB video memory, DVD-ROM video playback,
integrated audio and improved 4 x 4 expandability. In addition, for
customers who want more storage space, new Brio PCs will offer a
Seagate Medalist 13032 13 GB hard disk drive.
The entry-level Brio PC comes with an Intel Celeron 333 MHz
processor, 4.3 GB hard-disk drive, 32MB SDRAM, high-performance PCI
integrated audio, Windows 98 and the HP Brio Centre.
With the new machines, HP resellers can now start to complete head
to head with the no-brand clones that some independents are
starting to stock.
Siemens launches Scovery multi-functional PCs
Siemens has taken the wraps off a new range of `multi-functional'
PCs called the Scovery series. According to the firm, the machines
have been designed for reseller supply into major corporates as a
plausible replacement option for basic terminals.
The machines have a small footprint, are claimed to be highly
secure and cost-effective. This makes them ideal for large-scale
database access or SAP R/3 applications, the company says.
According to Siemens, traditionally, there have been two models for
operating a network with centralised data storage, but neither had
proved to be ideal for corporate users. Once is based on dumb
terminals, while the other is based on central data storage, but
with conventional PCs on the network.
Siemens claims that the dumb terminal system is restrictive, while
the use of PCs relies heavily on a network administrator to keep
applications secure and available.
The Scovery 211 and 212 series are different, Siemens says, since
they can be equipped with an optional Linux operating system,
terminal emulation and Citrix client software.
The PCs are based on Intel x86 (Pentium II) architecture with 512K
of onboard cache and a 4 MB graphics adapter. The real clincher,
for the dealer, is that the `terminals' can be upgraded with a hard
disk, CD-ROM, floppy drive and Windows 95 or NT 4.0.
Up to 256 MB of memory can be added to the machines, and there is
room for two expansion cards.
Sounds good? It certainly does. Pricing depends on the
configuration, but Siemens says the machines are around two-thirds
the cost of a basic PC and have far less total cost of ownership
(TCO) costs.
Madge Networks offers trade-in program
Madge Networks is offering network card users a chance to upgrade
their adapter hardware in time for the dreaded Year 2000 date
change. Under the adapter trade-in program, Madge is offering $25
cash back for each Token Ring network interface card traded in
against the
purchase of a Smart 16/4 PCI Ringnode Mk3 (WoL) adapter.
Graham Carter, Madge's business manager, said a firm can trade in
any Token Ring adapter from any manufacturer. For example, if a
customer purchases 50 Smart 16/4 PCI Ringnode Mk3 (WoL) adapters
and trades in 50 Token Ring adapters, they will receive $1,250 cash
back.
`Under the program, customers can evolve their networks and
incorporate new systems without having to worry about network
adapter compatibility and the Year 2000 date change,' he said. The
program runs through until the end of June.
TDK Systems signs up Computer 2000
TDK Systems has signed up Computer 2000 to handle its PCMCIA
communication card distribution. The distributor will handle TDK's
Global Freedom 5660 and Global Pro ISDN, as well as "soft" GSM
products such as GlobalPulse.
According to Keith Marsden, TDK's managing director, the idea is to
grow the firm's sales substantially. `To do this we have to work
with the biggest and strongest players in the European distribution
market,' he explained.
Samsung invests 8 million pounds to get printer market
share
Samsung says it is looking for a 10 per cent market share with its
new range of laser printers. And to get that slice of the action,
the firm is investing eight million pounds and creating a
seven-strong UK division to service the reseller and retail
channels.
According to Clive Huntingford, the firm's manager of the new
printer division, Samsung has signed Midwich Thame and Direktek as
its distributors, as well as Dabs Direct and Action Computer
Supplies as its mail order outlets.
`Samsung is ready for the fight and can offer a real alternative,'
said Huntingford, who added that the company is also looking for
strategic alliances with major resellers.
Margins may be squeezed on laser printers, owing to some very keen
prices from Epson and HP, but Samsung must think it is worth at
least eight million pounds for it to invest this kind of money,
Dealer Info notes.
Novell, 0044-1344-724312 (GB), http://www.novell.com;
Hewlett-Packard, 0044-990-474747 (GB), http://www.hp.co.uk;
Siemens Computer Systems, 0044-1252-555396 (GB),
http://www.siemens.co.uk/cs;
Madge Networks, 0044-1753-661000
(GB), http://www.madge.com;
Computer 2000, 0044-1256-847505
(GB), http://www.computer2000.co.uk;
Samsung,
0044-181-380-7000(GB), http://www.samsungelectronics.co.uk