zdnet.com
ISPs Push Hardware Bundles
By Ben Elgin, Sm@rt Reseller
Internet service providers (ISPs) who are experimenting with hardware
bundles are finding the payoff to be positive.
Netcom On-Line Communication Services Inc., for example, is claiming
that 30 percent of its business now comes from connectivity solutions
bundled with software and hardware, as well as indirect sales. After
dabbling in simple software bundles for several years, Netcom is diving
into the hardware bundling arena, occasionally proffering its
connectivity solutions with the likes of Cisco Systems Inc. and Lucent
Technologies Inc.
According to Netcom execs, packaging basic connectivity hardware is
essential for small businesses that may not know which router or
modem will work best with their connectivity solutions. "Often, small
businesses don't know what they don't know. So bundling is crucial for
putting the solution in context for the customer," says Alene Dishon,
Netcom's director of channel sales.
Fellow business ISP PSINet Inc. is also tinkering with various hardware
bundling offers, packaging Net access with routers from Intel Corp. and
Ascend Communications Inc. But, unlike Netcom, PSINet is banking on
big-name distributors to sell the products, rather than relying on a joint
sales program.
Nonetheless, the jury is still out on PSINet's bundling strategy, as its
Intel package was introduced less than one month ago and its Ascend
bundle is being officially unveiled today. But company officials are
optimistic, as PSINet has already netted 25 new business customers
through its young Intel rogram. |
