Parallel import, it’s not OK with MS
Microsoft’s robust stance on grey market importing has hit a raw nerve with ITAC, the UK distributor, which is sueing the software giant for seven million pounds for libel.
Microscope, the UK reseller magazine, reports Microsoft as having accused ITAC of ‘parallel importing’ products in the UK from a reseller in the Middle East, and calling ITAC a ‘rogue trader.’
As many readers will be aware, there is nothing illegal (at the moment) with grey market importing, which is the process of importing products for sale in one country from another country.
The price of IT software varies widely around the world, reflecting the difference in the cost of living in various countries. You can understand the vendor’s viewpoint over grey market imports, as the cost of support - something vendors must supply free of charge in the European Union - is often always included in some international markets.
According to Microscope, ITAC is sueing Microsoft, saying that the accusations made by the software giant on its Web site and in press releases sent to the media are libellous.
I suspect the case is likely to drag through the courts for some time, but it is an interesting one, as the issue is highly contentious. If the case does reach the courts and a decision made one way or another on the legality of grey market imports, it should finally settle the issue for the UK reseller channel.
Fortinet signs distribution deal with Computerlinks
Unipalm, the UK division of Computerlinks, has signed a distribution deal with Fortinet, the IT security vendor.
Under the distribution arrangement, Unipalm will supply Fortinet’s Unified Threat Management systems to its UK and Ireland reseller channel. The value-added distribution arrangement is also available to Computerlink’s European distribution operations in Austria, France, Germany and Hungary. Announcing the deal, Andre Stewart, Fortinet’s vice president, said that it is an important step for the company. ‘As our first pan-European distribution agreement, it illustrates Fortinet’s now significant presence in the region,’ he said, adding that he believes the partnership will enable Fortinet to benefit from Computerlinks’ broad reseller channel and boost its market share. Richard Hellmeier, Computerlinks’ CTO, said that the Fortinet link-up will allow the distributor to offer a unified threat management system to its resellers. Unified Threat Management technology, he said, represents an approach to security that is set to increase in popularity as the complex nature of security threats demands an IT security system that can react immediately.
Mitac intros rugged 15" laptop
Mitac’s MTC division has unveiled what it claims is the first rugged laptop with a 15 inch LCD display. The M220 ruggedised laptop is available to resellers with a choice of 14 or 15 inch display and is billed as the first to meet the new European IP54 environmental specifications. According to MTC, the IP54 specifications offer protection against dust and water jet sprays from any direction whilst the laptop’s magnesium case construction can withstand a fall from a height of three feet on to a steel surface. Based on Intel’s Dothan low power processor running at 1.4GHz, the M220, which weighs in at 3.9 kilos, is billed as running to US military standards of raggedness. Despite the rugged specification, Mitac said that the 2,5 pound notebook features a removable shock-mounted hard drive of up to 80GB which includes 40-bit eNOVA encryption.
MTC adds that the notebook also offers options for four types of wireless connectivity based on Intel’s Centrino platform - 802.11b WiFi- , GPS, Bluetooth and GSM/GPRS mobile data.
The M220 is being sold in the UK and Western Europe through Rugged Systems, a specialist in the field of rugged computer, PDA and communications systems. Chris Harrington, the firm’s sales and marketing director, told Dealer Info that the M220 is currently on a four week delivery schedule and is available to the firm’s partners across Europe, including specialist resellers in the Netherlands.
‘MTC is not well known in the laptop marketplace, but it is also known as Getac in the US, where it was formed as a partnership between Mitac and General Electric. These days its completely under the control of Mitac and supplied specialist kit such as the M220,’ he said.
Technology Services Group expands again
Technology Services Group (TSG), the IT services division set up by ex-Sage founder Graham Wylie, has acquired Logical Systems, the Leeds-based accountancy software reseller. Logical, which has 17 members of staff, is a Sage reseller with around 300 small-to-mid-sized business customers. Plans call for the staff to be relocated to TSG’s Northern offices, which are also in Leeds. The move boosts TSG’s staff to an impressive 380 and an annual turnover of 36 million pounds generated by around 9,000 business customers.
The acquisition of Logical Systems follows on from the firm’s acquisition of three other resellers during December. It’s been a busy 12 months for TSG, which Sage’s co-founder Graham Wylie created two years ago when he bought a Gateshead-based accountancy reseller called Joynson and renamed it as TSG.
Since then, TSG has opened offices in Aberdeen, Edinburgh, Glasgow, Leeds, Manchester, Newcastle, Sheffield and Teesside, appointing David Stonehouse, the ex-chief executive of football club Newcastle United, as its CEO in August of last year.
Announcing the acquisition, Mark Ambler, TSG’s Northern managing director, said it is an deal opportunity to expand the mid-market proposition in the region. ‘We will be offering additional hardware and infrastructure expertise to all Logical Solutions’ customers. We will also be able to service existing customers even more effectively thanks to the skills and experience of the former Logical team.’
2004 a PC sales success, says IDC
Figures just in from IDC for December suggest that 2004 was a healthy year in terms of PC sales for the UK, with sales growing 16.9 per cent in the final quarter of the year compared to the same period a year earlier. The IT research group says that 2.6 million PCs were sold in the UK in the fourth quarter of 2004, 35 per cent of which were notebooks.
Growth in notebook sales was 34.4 per cent during 2004, says IDC, adding that desktop and server sales grew by 9.1 and 13.0 per cent, respectively.
Ian Gibbs, a senior analyst with IDC, said that, despite national economic statistics suggesting a slowdown in retail sales towards the end of the quarter, consumer PC shipments drove overall market growth in 4Q04. ‘While the Christmas shopping season provides a traditionally strong boost to home computing demand, growth was maintained in the business markets also.’ According to Gibbs, competition between and within the direct and indirect channels continued to intensify in 4Q04, driving down consumer PC prices and stimulating further demand.
The research concludes that, although consumer demand for mobility continued, growing by 52.6 per cent, the desktop market maintained healthy volumes.
On the vendor front, IDC notes that Dell held on to the number one position in the UK, further increasing its leadership in the fourth quarter. Dell’s 42.1 per cent year-on-year growth in the fourth quarter, together with 21.5 per cent market share, were due to a robust performance. HP came in second with 16.0 per cent of the PC market, down 2.8 per cent on the year as a whole, although the third slot was taken by NEC, which grew its sales by 24.1 per cent to 7.3 per cent.
The big surprise was Acer, which leapt into fourth position in the fourth quarter, with the growth mainly driven by a strong performance in the notebook market fuelled by some very attractive prices.
ADC Krone signs RGD King as sales partner
ADC Krone, the broadcast and cabling specialist, has signed RGD King, the networking specialist, as an associate installer on its partner program. The move is interesting for RGD King, as it gives the firm access to sell ADC Krone’s new 10 Gigabits/second CopperTen networking technology. According to Mike Hawtin, ADC Krone’s UK managing director, RGD King gained the right to be an associate installer on the basis of its quality standards, training record and history of installation expertise.
‘We take a great deal of care to select only those companies whose work we can hand-on-heart recommend.’ Hawtin went on that the strength of the warranty that his firm is offering through RGD King gives the end user a comprehensive assurance. ‘Consequently, we need to know its work is the best. RGD King has been rigorously examined and we are delighted to award it this hard-earned qualification.
Fortinet UK, +44-1483-549385, www.fortinet.com;
Rugged Systems, +44-1276-686707, www.rugged-systems.com;
Unipalm UK & Ireland, +44-1638-569600, www.unipalm.co.uk;
TSG, +44-191-2561166, www.tsg.com;
IDC, +44-20-89877229, www.idc.com;
ADC Krone, +44-1242-264444, www.krone.co.uk
Steve Gold (sg@mail.com)