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IBM Announces Distribution Agreement with Bell Microproducts
SOMERS, N.Y. and SAN JOSE, Calif., Jan 12, 2000 (BUSINESS WIRE) --
IBM today announced that Bell Microproducts (NASDAQ: BELM) will become a
Technology Group Solutions Partner for distributing IBM technology
throughout the Americas. The agreement is expected to generate more than $2
billion in sales over the next four years.
The agreement capitalizes on Bell Microproducts' established marketing and
sales structure in a broad range of product areas represented by IBM's
Technology Group, including LCD panels, network controllers, storage area
networks (SAN), network and server attached storage (NAS and SAS), hard
disk drives, tape drives and tape libraries.
'Expanding sales of IBM technology through Bell Microproducts will help
bring IBM innovations to market faster,' said David Ernsberger, vice
president of worldwide sales, IBM Technology Group. 'Bell Microproducts'transition from a traditional component distributor to a solutions provider makes them well-suited for bringing IBM's leading-edge technologies to resellers, system integrators and OEMs.'
'Our agreement with IBM represents a milestone in an emerging new
distribution industry paradigm centered on providing solutions and not just components,' said Don Bell, president and chief executive officer of Bell Microproducts. 'Our ability to deliver a broad range of value-added services will complement IBM's Technology Group product portfolio,' he added.
Bell will market IBM products at a variety of levels of integration, from components to subsystem assemblies and fully integrated, tested and certified system solutions. Bell will also add value through a broad range of services including testing, software loading, kitting, mass storage system integration, and computer system integration.
Through the agreement, Bell Microproducts will rely on its existing e-
business and supply chain management infrastructure to expand sales of IBM
components. PartnerNet, Bell Microproduct's new customer extranet, will guide VARs and OEMs through the decision-making, pricing and purchasing processes of IBM products. A Virtual Warehousing program will allow resellers to position Bell Microproduct's vast IBM inventory as their own through internet portals. Lastly, Bell's Web site will feature a new marketplace environment that will present IBM products as part of state-of-the-art solutions.
To target the rapidly growing data storage business, Bell's BellStor
Storage Solutions Division will provide technical support for the entire
range of storage products from the IBM Storage Technology Division,
including server attached storage (SAS) arrays, network attached storage
(NAS), storage area network (SAN) and tape automation solutions.
A leading distributor of IBM products since 1993, Bell Microproducts is a
value added provider of high technology products, solutions, and services
for the industrial and commercial marketplace throughout the Americas. The
company's offerings include semiconductors, computer platforms,
peripherals and storage products. Bell Microproducts markets and
distributes more than 100 brand name product lines, as well as its own
BellStor storage and Trademark computer brands, to original equipment
manufacturers (OEMs), value-added resellers (VARs) and system integrators
in the Americas. For more information, visit www.bellmicro.com.
The IBM Technology Group, a major supplier of components to computer
makers, is one of the world's largest manufacturers of hard drives, liquid
crystal displays, tape storage systems and semiconductors.
Safe Harbor Statement
This news release discusses our expectations about sales contributions in
the future. These statements are forward-looking within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, and are subject to risks
and uncertainties. Actual results could differ materially from any future
performance suggested above. Among the factors that could affect the final
results are the impact of competitive products and pricing, integration of
acquired operations, reductions in or cancellations of customer orders,
changes in relationships with suppliers, product mix sold by the company
and other factors described in the company's most recent periodic filings
with the Securities and Exchange Commission. |
