Haven't seen this posted:
February 26, 1997, TechWire
------------------------------------------------------------------------
Resellers React To 3Com-USR Deal
By Michelle Graziose
Computer resellers said 3Com's $6.6 billion merger with U.S. Robotics is going to result in a networking powerhouse with benefits for the channel. Still, 3Com faces major challenges in melding the channel, culture and product lines of U.S. Robotics into its fold, according to industry analysts.
"I am not afraid about this," said John Lanigan, president of Lanigan & Associates, a Fort Salonga, N.Y., reseller. "This is two solid firms accustomed to acquisition transitions. I look forward to this. These companies are both pros. They are not going to want to lose their markets. I see both as pieces of a strong communications puzzle and look forward to working together with them."
Sara Ripley, a technical research executive with Custom Computer Specialists, Hauppauge, N.Y., said the merger could "disrupt" technical support, but she was optimistic. "Hopefully, 3Com will be able to support older products that USR carried, " she said.
"There could be some very interesting channel conflicts arising from this," cautioned Frank Dzubeck, president of Communications Network Architects, a Washington, D.C., communications consultant. "VARS want a single channel program with discounts associated on the entire product line."
"The only way to make this really work is to have a single amalgamated structure with one single voice to the channel," Dzubeck said. "That is what Cisco has. That is what 3Com used to have. ... The VAR has to see one company, not two."
Dzubeck said there is likely to be a period of uncertainty for VARs while 3Com, Santa Clara, Calif., attempts to integrate the U.S. Robotics channels into its fold.
"We already deal with them both," said Howard Lipman, president of Prima Systems, New Hyde Park, N.Y. "We do not think it will affect our relationship with either, particularly since we use U.S. Robotics modems exclusively along with the 3Com boards."
"I see the link between the two companies providing the ability to get us products quicker," said Stephen Quon, an executive at Extreme System Services, in New York.
Noting he sells a large amount of U.S. Robotics products, Quon said he hopes 3Com will "help provide more national support coverage."
Cliff Leventhal, an executive at Target Computer in Patchogue, N.Y., said he expects no major disruption to his 3Com or U.S. Robotics business as a result of the deal. "I do not expect any changes to their channel plans," he said.
Steve Pataky, a 3Com channel programs executive, said U.S. Robotics will remain strong on the WAN side, and 3Com on the LAN side. "There is high synergy between the two," he said."Now with this combination, we are going to be doing a lot for small business."
"This is a helluva deal for 3Com," said Brad Baldwin, director of remote access at International Data Corp., Framingham, Mass. "3Com has the hubs adapters, bridges and routers, whereas USR has the modems and remote access pieces."
One possible area of overlap may be 3Com's Access Builder infrastructure vs. USR's Total Control remote access platform.
"Shiva gets pounded down in this one," said Don Miller, principal analyst with Dataquest, San Jose, Calif. "3Com can now go in stronger against Ascend and Cisco, but Ascend is probably more vulnerable because of its size."
"It's probably a good marriage," said Jamie Burton, Network Products sales manager at Data Systems West, a high-end integrator in Woodland Hills, Calif. "This gives them a lot of strength on the lower end, and could really impact Ascend."
-- Ken Presti and Steven Burke contributed to this story. |
