Software, rentware
This month sees confirmation that the rentware concept of software, first outlined by Microsoft at the start of last year - and confirmed in these columns soon after - is the way forward for software.
Microsoft (see below) is now very keen to move to a leasing model, which will make its software appealing to companies setting up business and will, the software giant clearly hopes, reduce the number of users ripping off its applications.
Meanwhile, as Compaq and ICL see their PC sales slide as UK companies cut back on IT investment, Tiny Computers, the high street retailer, is continuing to streamline its direct sales model.
On top of the discount sales kiosk service now being installed in its retail stores, the PC vendor has a new support Web site, which it says is dedicated to resolving technical and customer service enquiries and aims to cut incoming service calls by up to 90 per cent.
Located at www.tiny.com, the new site is part of a campaign to further enhance after-care service within IT and set new industry standards - oh, and cut costs as well.
The idea is that customers will have instant access to regularly updated drivers, technical documents, and troubleshooting guides, along with information on warranty procedures and answers to the most frequently asked technical support and service questions. Customers can still contact their retail store - and the call centre for information, but the idea is to deflect most queries to the Web site.
Considering that Tiny now has a customer base of 1.3 million-plus, this is a sensible strategy. The PC vendor says that the Web site should considerably ease the strain on its call centre, which handles around 5,000 calls a day.
James Sanders, the firm's services director, said that Tiny believes that 90 per cent of customer queries can now be resolved through the information available on the Web site. "Not only will customers benefit from around the clock support, but they can also learn valuable technical skills along the way," he explained.
All change at Microsoft - leasing and rebate shuffles
Microsoft is reported to trialling software leasing for its major customers in Poland. Early reports suggest that the strategy is successful and will soon be extended to the UK.
At the same time, the software giant has zapped its distributor rebate scheme in the UK, re-routing the rebates to dealers to encourage them to boost their sales.
The leasing plan effectively knocks the distributors out of the loop by replacing them with a leasing firm to service the needs of dealers directly.
The move cuts the capital costs of software to companies, but means they must sign up for a monthly payment programme, which includes updates and maintenance.
On the rebates front, meanwhile, the rebates are being re-routed to dealers, since Microsoft reckons that distributors could have done a lot more to boost sales. Using rebates for dealers directly, the company reasons, will encourage resellers to increase their sales on a localised basis.
Under the rebate programme, dealers will be given a two per cent rebate once certain targets are reached.
Compaq reworks UK dealer operations
In parallel with its strategy of becoming more of a software and services company, and less of hardware vendor - sounds like IBM's strategy, doesn't it? - Compaq is revamping its UK indirect operations to focus more on resellers.
The move coincides with the departure of Stuart Curzon, the company's enterprise group director, and Nick Offin, his channel partner colleague. The existing partner business division is being split into two operations - channel business and business development.
Mike Morgan, head of channel business, said that the changes will pave the way for major developments in the reseller channel in the next three months.
Quite what those changes will be remains to be seen, but it looks increasingly likely that Compaq may move to a monthly service package deal for its servers and software, rather than selling hardware and software as it has done to date.
This almost certainly coincides with changes at Microsoft (see above) and could well herald a complete change in the way IT systems are sold into businesses.
IT security vendors get serious about resellers
As previously reported in these columns, the IT security companies are now out in force to recruit dealers in the UK.
First out of the gate is NetScreen Technologies, which has announced its EMEA distribution and reseller programme, which includes a single EMEA-specific price list, two levels of qualification for distributors, and three levels of qualification for resellers.
The Fleet, Hampshire-based firm says that, by supporting channel sales efforts and enhancing end customer service experiences the programs will give distributors and resellers the opportunity to share in the opportunities by its network security products.
Distributors participating in the NetScreen EMEA distributor programme have a choice of two purchasing levels, depending on agreed market commitment and product-related accreditation: Premier and Authorised. Participating distributors will then recruit resellers to the NetScreen EMEA reseller program.
Computer Associates, meanwhile, has revamped its partner programme so as to remove a number of layers from the scheme. The VIP programme was previously organised into business solutions partners and enterprise partners, which were then split into gold, silver and bronze.
The reorganisation, which took place in August across Europe, will see the levels change to affiliate, premier and enterprise. Affiliate partners will have access to CA information, but little personal contact with the vendor. Premier resellers will have access to marketing funds and a dedicated account manager, while enterprise partners will be expected to have a vertical specialisation.
Last, but not least, is SurfControl, another UK IT security vendor, that has stepped up its reseller recruitment drive and is looking for a further 20 resellers (in the UK) to support its sales strategy. According to Martino Corbelli, the company's marketing manager, SurfControl has signed up its first 20 resellers in the eight weeks to the middle of July, and is now looking for extra dealers. The firm, which sells a variety of Web filtering applications under the SuperScout brand, is looking to by-pass second-tier distributors and work directly with its reseller partners. The company's gameplan is to add value by signing up a limited number of resellers specialising in security software, and then working directly with them. Julian Martin, SurfControl's reseller manager, said that dealers are finding the firm's proposition compelling. "We've avoided going through distribution to avoid flooding the market, keep margins high and to help create real business opportunities for our partners," he explained. "This is an ideal channel product as it often is a value-added element in a wider network security solution," he added. Under SurfControl's partner programme, resellers have access to technical and sales training support, as well as marketing support. The levels of accreditation range from entry-level Business Partners that will add the company's products to their own portfolios, to Security Partners that are strategically aligned to the company and sell only SurfControl products.
ICL shaves staff as profit falls bite
ICL Multivendor Computing has announced plans to shave around 60 of its staff from the UK operation owing to falling spending levels on IT amongst British companies.
The move is in preparation for the name change announced last month, which will see the Fujitsu-ICL brand name disappear in favour of the Fujitsu name from the end of the years onwards. Curiously, the cutbacks at ICL are being paralleled by investments on the Fujitsu Siemens side of the business, which is looking to sign up around 200 resellers on its high-end enterprise dealer program. The recruitment campaign forms part of Fujitsu's Elite2 partner programme, which has been designed to raise the company's profile at all levels in the indirect channel. The company has already earmarked around two million pounds on an advertising campaign for the program.
Microsoft UK, 0044-870-5030400 (GB), www.microsoft.co.uk;
Compaq UK, 0044-20-8332-3000 (GB), www.compaq.co.uk;
Computer Associates UK, 0044-1753-577733 (GB), www.cai.com;
NetScreen, 0044-870-0750000 (GB), www.netscreen.com;
SurfControl, 0044-1260-296200 (GB), www.surfcontrol.com;
ICL, 0044-1753-604736 (GB), www.icl.com