Compaq in the Internet-age
The increasing role that the Internet is playing in the reseller and retail channel - as illustrated by Great Universal Stores' acquisition of Jungle.com (see below) - is being picked up by the PC vendor community.
This month sees Compaq UK having appointed a director of strategy and marketing, whose primary job will be to raise the company's profile on the Internet.
Compaq has recruited Robert Fedder from KPMG to take on the new role, but the Microscope UK reseller newspaper reports that dealers are less than pleased with the PC vendor's continuing inability to confirm how its Compaq Internet Age (CIA) masterplan is going to work.
Microscope says that dealers are worried that the PC vendor is looking to squeeze them out of the picture by allow both business and consumer customers to buy their PC's and peripherals direct from the company's Web site.
This worry is at the back of most dealer's minds, even though, if a reseller has gone down the value-added path, then s/he should be able to continue trading by offering a lot more than simple box-shifting discount prices.
GUS snaps debt-laden Jungle.com
Great Universal Stores, the UK retailer, has acquired Jungle.com, the online computer e-tailer for 37 million pounds, significantly below the several hundred million pounds it was valued at earlier in the year - before the fall of dot.com companies.
The deal, which includes 12 million pounds of debt, brings to end the dreams of Steve Bennett, the firm's CEO, who had wanted to go for an IPO (flotation) some time next year.
While the deal may disappoint both Bennett and venture capital firm 3i - which invested about four million pounds for a 33 per cent stake - it marks an interesting move for GUS, which is already the UK's largest mail order company with approaching 20 per cent of the home shopping market, thanks to its existing nine Web sites.
GUS says that the acquisition will almost double its 50 million pound online turnover, adding a strong brand in the process, as Jungle.com claims it is next only to Amazon.com in the UK online brand recognition stakes.
As part of the deal, Bennett, who will receive around seven million pounds for his stake in the business, will remain as head of the GUS division for years.
GUS plans to link Jungle's purchasing and fulfilment operations with its Argos Internet operation, running the two sets of Web sites in parallel.
The deal proves, once and for all, that online IT retailers must be big - very big - to survive. Unlike the `bricks & mortar' computer resellers in the real world, there is little brand loyalty online.
ELSA appoints Computer 2000
ELSA, the German computer graphics and Internet access specialist, has appointed Computer 2000, the UK's largest trade only distributor, expanding its presence in the UK and Ireland.
Plans call for ELSA's range of graphics card and datacomms products to be available to all VARs and general computer resellers, who will also have the ability to shop online with Computer 2000's Web-based `InTouch Products Online' service.
Fiona Faulkner, ELSA's UK managing director, said that, not only does the deal with Computer 2000 offer improved availability, it also adds value to the company's dealer channel partners.
"We see great opportunities, in particular, to grow our market share in the SME (small to medium enterprise) networking and PC-based home multi-media markets where we already have technology leadership positions," she said.
Dealer Info understands that the ELSA product portfolio will be marketed through Computer 2000's specialist networking division.
Commenting on the agreement, Andy Shepperd, Computer 2000's general manager for networking, said that ELSA is a growing force in both the graphics and comms markets.
"We've seen their explosive growth in Germany and now expect great things from them in the UK. Their product range connects well with our networking and CAD business," he said.
HP pitches for SME marketplace
Hewlett-Packard has announced plans to offer around 10 bundled deals to entice SME's (small to medium-sized enterprises) to open their chequebooks this Autumn.
At the same time, the vendor is also planning to open a number of centres around the UK to allow resellers to demonstrate hardware to potential business customers and other interested parties.
To support dealers online, HP is planning to open a restricted access Web portal for dealers and resellers. This will allow dealers to download marketing information for inclusion in their own presentations.
Ideal to offer dealers a branded image
Taking a leaf out of Computer 2000 and Ingram Micro, Ideal Hardware is planning to offer dealers a chance to brand themselves as Ideal Hardware resellers.
This will, the distributor says, allow dealers to sell the Ideal brand of PC's and peripherals as their own, as well as opening up the dealer to marketing materials.
Alex Tatham, Ideal's commercial director, said that the Shopfront programme is a positive move for those dealers that are prepared to tie themselves into a single-supply contract.
One of the most interesting aspects of the programme, which is due to get rolling by the end of the year, is that it will eventually allow dealers to offer online ordering facilities to their major customers, using a customised version of Ideal's Boris Internet computer system.
Privador cuts firewall prices to offer resellers
Privador has launched its firewall software, support and security updates to all customers at what it claims are reasonable and simple terms.
The basic firewall software sells for 349 euros with all customers having the option of purchasing six months support and security updates at a discount price, bring the total six-month package to 475 euros.
Tenis Reimo, the firm's marketing manager, said that the main value of Privador's firewall is its security updates, "Sure, a firewall solution without updating system can be created at a cheaper price, but in this case, the customer cannot feel secure regarding future attacks and continuing development," he said, adding that the price-cutting campaign is aimed at bringing security updates and support to all firewall customers."
Barricade firewall product family also contains, besides the software version Barricade S, hardware versions Barricade Classic and Barricade XL.
All Barricade versions, the firm says, are characterised by simple Web-based management, good documentation and continuous security updates which add new features to the firewall.
Jungle, http://www.jungle.com;
Elsa UK, 0044-118-965-7755 (GB), http://www.elsa.co.uk;
Tech Data/Computer 2000, 0044-1256-847505 (GB), http://www.computer2000.co.uk;
Hewlett-Packard, 0044-1344-360000 (GB), http://www.hp.com;
ideal Hardware, 0044-20-8286-5146 (GB), http://www.ideal.co.uk;
Privador, http://www.privador.com/barricade