Distributor Opinions Vary On Merger
By Edward F. Moltzen
CRN
New York - 3:37 PM EST Fri., Dec. 14, 2001
Tech Data Chairman and CEO Steve Raymund said Hewlett-Packard and Compaq Computer could remain in good shape if a planned merger falls apart, but fears of change on the part of the vendors' management might be impeding its approval.
"Management has been confused and biased against innovation and change. Nobody wants to take a risk and start a change in strategy, given any uncertainty," said Raymund, speaking at the Raymond James/CRN IT Supply Chain Conference held here last week. Raymund also suggested Compaq's strong product portfolio and market position would enable it to emerge from any scuttled deal in good shape.
Although Raymund said Tech Data has noticed no impact on sales as a result of confusion over the merger, another distribution executive said his company has.
Art Rhein, president of Pioneer-Standard Electronics, said he has seen a blip in sales since the merger announcement on Sept. 4. "It has caused a bit of hesitation as customers learn what is going on," he said. If HP and Compaq complete the merger, Rhein believes things will "get back to normal." Rhein also said he supports the merger. "The merger will serve both companies well," he said.
Some executives, such as Ingram Micro President and COO Mike Grainger, believe rival Dell Computer has gained an advantage since the deal was announced because of confusion in the marketplace.
Roy Vallee, chairman and CEO of Avnet, indicated HP sales were actually showing strength despite the uncertainty. Vallee told investors that steps HP took last year to streamline channel logistics and the growing acceptance of HP's Itanium-based servers on the high end were helping the vendor rebound.
Post merger, he said, Avnet could see a boost in business, especially if some companies that leave the HP-Compaq fold choose IBM-branded solutions. Vallee said Avnet is IBM's largest North American reseller.
ERIC HAUSMAN contributed to this story. |
