COMPUTER RESELLER NEWS
September 21, 1998, Issue: 808
Section: Systems Assembly
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Issues: Co-Location, White Boxes -- Is Channel Assembly Truly The Answer?
Eric Hausman
New York -- Systems assembly was a hot topic at The Robinson-Humphrey Co. Inc./CRN investor conference, with issues ranging from the white-box market to co-location to who was responsible for the lack of progress in reducing costs.
"This is a controversial issue, but there's been a little bit of a shortfall on the promise of channel assembly," said Ed Anderson, president and chief executive of CompuCom Systems Inc., Dallas. "We thought channel assembly was the answer. We've done our part, and now we are waiting for the manufacturers to do theirs."
Tom Meredith, chief financial officer of Dell Computer Corp., was quick to jump on the issue. "The expectations of channel assembly were higher than the outcome. I don't see it as a threat to the direct model. [Indirect PC vendors] made promises to the channel with expectations that were too high," he said.
Meanwhile, many channel players now look to the co-location option. "Co-location has promise, but it has risks," Anderson said.
John McKenna, president and chief executive of Entex Information Services Inc., Rye Brook, N.Y., said his company is considering co-location.
"We are evaluating co-location," McKenna said. "We have a study out there looking at co-location and in-transit mergers to take cost out of product."
Other channel players continue to forge ahead with their own plans. Ingram Micro Inc. said it has started shipping white-box computers built at its Memphis, Tenn., channel assembly plant.
Jeff Rodek, Ingram Micro president and worldwide chief operating officer, said the systems were basic PC configurations and were built in bunches of about 10 to 30 for resellers in the government and education markets. "It was a soft launch, not a big bang," he said. |
