Microsoft wants customer-lists, for what?
Microsoft's new transaction service program is causing dealers some concern, since it involves them handling over details of their customers to Ideal Hardware and Ingram Micro, the software giant's main UK distributors, for inclusion on an invoice database.
The idea behind the program, which will see Computer 2000 coming on board later this year, is that Microsoft uses its distributor resources to handle licence renewals.
According to Microscope, a UK trade weekly, dealers are understandably reluctant to hand over their customer details to Microsoft for billing, knowing full well that the data will be relayed to Ideal and Ingram's staff.
The trade paper quotes Alex Hilton, Microsoft's UK small to medium-sized business distribution manager as saying that the scheme has only been launched after feedback from resellers. The paper also quotes several resellers as saying their is no way they are going to hand over their customer lists to Microsoft, since they see a real risk of the distributor adding the contact details to its sales calling systems. You can't really blame them, can you?
PC pricing continues to take a tumble
January research just released by IDC claims to show that the price reductions on PC hardware of the last couple of years is showing no sign of abating.
Perhaps worse, the IT research group says that it does not expect the trend - including high levels of competition - to slacken off in the months ahead. IDC says its pricing index, which tracks relative pricing movements, lost nearly two points in January, registering yet another record low at 64 points and a 12 month drop of 12.1 points. Commenting on the figures, Massimo Melis, IDC's research analyst for personal computing, said that many high-profile PC vendors are keeping their prices attractive in a bid to maintain market share.
The danger with this strategy, of course, is that profit margins on such kit get slimmer, as the price stays static and the costs for the manufacturer keep rising, IDC says that the pricing of PC hardware has been particularly competitive in the last few months, both in the UK and across Western Europe, most notably with Hewlett-Packard, which shaved around 4.5 per cent off the price of its PC's.
Security firms embrace the dealer channel
As I've mentioned in previous columns, IT security vendors are now starting to work with the dealer channel in earnest, especially now that many IT security products are relatively easy to install. Others, meanwhile, are reworking their reseller programs to entice more dealers to sign on the dotted line.
SonicWall is a classic example, having relaunched its dealer program as the Medallion Partner campaign, with three levels of reseller - approved, silver and gold. The program, which has been available in North America for the last few months, is now being rolled to UK dealers, and will be progressively launched to Western European dealers this spring. Dag Lundervold, SonicWall's vice president, said that his firm is deeply committed to the reseller channel. 'This program rewards those partners who are interested in fostering a business development relationship with SonicWall, versus strictly offering volume discounts,' he explained.
Approved dealers get a regular flow of information with the firm, along with Web-based training sessions and a loyalty program to offer their customers. Silver dealers also get access to lead referrals, and preferred buying conditions at the distribution level. Gold resellers get the best deal, including an interactive leads referral service and access to a named SonicWall sales rep. Gold partners also get invited to the firm's annual dealer event.
Internet Security Systems' (ISS) SecurePartner channel sales program, meanwhile, has no less than four tiers - standard, preferred and premium authorised, and a solutions partner level. Unusually, ISS requires its resellers to be certified to one of three levels to qualify for authorised station - certified specialist, certified expert and certified architect. The firm says that a premium partner should have a minimum of one employee at each level of certification, whilst a standard partner only needs a single certified specialist. The qualification, says ISS, must be renewed annually at any of the 110 Vue training centres across the UK. Richard Millar, ISS UK's sales and marketing director said that, as business is so tough at the moment, there is a need for a clearer channel structure that encourages better performance and better profit margins.
Dabs.com moves online credit in-house
Hard on the heels of its acquisition of SOS Developers, the French reseller, Dabs.com, one of the highest profile Web-based PC resellers, has made a second acquisition, this time involving V-12 Finance.
As the name implies, V-12 is in the field of instant finance, and the move means that Dabs.com can now offer in-house instant finance through its Web site. The move is an interesting one, as almost all online retailers of IT hardware that offer online finance in the UK operate through third-party companies, usually with a paper trail that takes several days to complete. V-12 was established at the start of 1999, since when it as been transacting around 25 million pounds worth of deals each year.
Under the deal, Dabs has taken a 65 per cent stake in V-12, with the remaining 35 per cent retained by its founder and MD, Scott Davies. The plan is for Davies and his staff to move to Dabs' Bolton headquarters, where the firm will office in-house finance to Dabs' online customers.
The linkup will allow Dabs to deal with applications for online credit a lot more efficiently and, because it is now done in-house, respond to consumer requests a lot more promptly.
Computer 2000 moves into audio-visual products
Computer 2000, the UK distributor offshoot of Tech Data, is moving into audio-visual products.
No, the firm isn't starting to sell TVs and videos - it's actually part of what the distributor calls its Audio Visual in IT (AVIT) initiative, under which sales staff go through special training to allow them to sell and support their IT dealer channel.
The firm says that the move into AVIT comes after a successful year in which it has started selling projectors, plasma screens and interactive whiteboards to its dealers. Andy Shepperd, the company's general manager systems business, said that his division has seen a 25 per cent growth in project sales and even strong sales increases in plasma screens. 'The use of portable projectors in particular is growing, mainly driven by SMEs who want to deliver professional-standard presentations and by education,' he said.
'Plasma screens are now becoming more affordable and widely used in business and in the public sector for Internet and video applications, as well as in the home and entertainment industries.' According to Shepperd, the plan is for the distributor to invest a significant amount of money into the AVIT program and to raise dealer awareness of sales opportunities.
'These are sexy and highly desirable products that improve the IT experience for the user immeasurably - they are also affordable products that carry a good healthy margin for resellers,' he added.
ISS, 0044-20-76539191 (GB), www.iss.net;
SonicWall, 0044-1344-668090 (GB), www.sonicwall.com;
Dabs.com, 0044-870-4293701 (GB), www.dabs.com, www.v-12.co.uk;
Computer 2000 UK, 0044-870-0603344 (GB), www.computer2000.co.uk