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To: hlpinout who wrote (82783)6/18/2000 6:58:00 PM
From: hlpinout  Read Replies (1) | Respond to of 97611
 
CRN Champions: New Market -- Network-Attached
Storage Crown Goes To HP

CMP Media Inc. - Friday, June 16, 2000

Jun. 16, 2000 (Computer Reseller News - CMP via COMTEX) -- Hewlett-Packard Co. proved itself once again
to be a strong partner in the storage arena by taking the CRN Champions crown for network-attached
storage.

Solution providers gave HP, Palo Alto, Calif., an overall 5.3 satisfaction rating in this new product category,
which has been picking up steam over the past year.

Seagate Technologies Inc., Scotts Valley, Calif., a relatively new entrant in the market, came in second at
5.2, and Compaq Computer Corp., Houston, was third at 5.0.

The CRN Champions survey polled 301 solution providers, asking them to rate their satisfaction with vendors
in eight areas, on a scale of 1 to 7. The champion had the highest average score.

HP's partner support programs gave it the edge. HP got the top rating in marketing support, training and
certification and technical support.

"HP has been the easiest vendor to work with over time," said Tom Thibault, owner of Thibault Associates Inc.,
Pleasant Hill, Calif. "It has been the most consistently channel-friendly."

But solution providers also liked HP's hardware. HP won the product quality and reliability area and tied for first
with Seagate in compatibility and scalability.

Three areas where HP slipped behind rivals were in price/performance, profitability and profit margins and
sales partnering.

The network-attached storage (NAS) market is still young, and the survey reflected that in the large number of
different vendors solution providers named during the open-ended phase of the poll. Only vendors named by at
least 10 percent of the sample were included in the ratings. Seagate made the cut even though it only entered
the NAS market earlier this year, while Compaq technically has yet to ship an NAS product. However,
Compaq is very much a player in this market because its general purpose file servers are widely used to add
storage to the network, said Mark Lewis, Compaq's vice president of enterprise storage software.

While file servers may still be the most common means of providing storage, solution providers see a shift
toward specialized network-attached storage devices. "People are more willing to put storage external to the
server than ever before," said Derek Cluff, senior account representative at Lewan & Associates, Denver.

Solution providers gave HP a strong 6.0 for quality and reliability, a sentiment shared by Chris Everett,
technical pre-sales manager for Logical, Bloomfield Hills, Mich., an integrator in the Unix and NT space. "HP
has very, very high quality and has very, very high reliability," Everett said. "I don't think we've ever had one
come back in one-and-a-half years."

That sentiment was seconded by Kim Dunmore, quality assurance team leader for Treev Inc., Herndon, Va., a
data-storage software developer and integrator. The company only supports and sells HP's NAS products.
"We don't feel the need to do anyone else," she said.

Seagate, which ranked second in quality and reliability with a 5.9, overtook HP in the next two
areas-price/performance, 5.5 to 5.4, and profitability and profit margins, where it walloped HP, 5.2 to 4.8.

One reason solution providers may rate HP's NAS boxes low in profitability is that they potentially cut into
service revenue. Since they are designed as plug-and-play devices, installation is relatively simple. "End-user
installation is easy, takes about 10 minutes, according to HP," Cluff said. "But customers still prefer our help,
especially in enterprise-class situations."

As for price/performance, Thibault said HP's NAS devices are priced well when compared to file servers with
attached storage. The price difference should motivate solution providers to seriously consider them,
particularly for remote offices, he said.

In the first partner support area-marketing support-solution providers also had good words for HP's
lead-generation and market development funds programs. The survey bore that out. HP's 5.2 rating edged out
runners-up Seagate and Compaq, which tied at 5.1.

In the training and certification area, HP, at 4.9, found its closest competitor to be Compaq, at 4.8. However,
solution providers said they required little in the way of training because NAS boxes plug into a LAN much like
any network hardware device. Moreover, HP does not have a specific certification program for NAS, although it
plans this month to launch a pilot training program for its NAS and SAN product lines.


2000 Champion
Manufacturer: Hewlett-Packard Co.
Popular Product: HP Netstorage 6000
Key Strengths: Technical support

Partner Comment: "HP has been the easiest vendor to work with over time. It has been the most consistently channel-friendly." - Tom
Thibault, Thibault Associates Inc.




To: hlpinout who wrote (82783)6/18/2000 6:58:00 PM
From: hlpinout  Respond to of 97611
 
CRN Champions: PC Competition -- Quality,
Availability Tilts Contest To Dell

CMP Media Inc. - Friday, June 16, 2000

Jun. 16, 2000 (Computer Reseller News - CMP via COMTEX) -- Dell Computer Corp. is as popular as it is
controversial among solution providers.

The Round Rock, Texas-based company was selected the top vendor for desktops and notebooks in the CRN
Champions survey of 364 solution providers.

Solution providers liked the quality and reliability, compatibility and scalability, price/performance and
availability of Dell's products, and gave the PC maker the highest satisfaction rating in those areas. Dell also
tied for first place with runner-up Hewlett-Packard Co., Palo Alto, Calif., in marketing support.

Dell fell behind its rivals in three other areas: profitability and profit margins, training and certification programs,
and technical support.

The contest among PC vendors was tight this year. Dell's overall satisfaction rating of 5.24, out of a possible 7
points, edged out HP's second-place 5.16 score. IBM Corp., Armonk, N.Y., came in a close third at 5.14,
followed by Compaq Computer Corp., Houston, at 5.08, Toshiba America Information Systems Inc., Irvine,
Calif., at 4.92, and Acer America Corp., San Jose, Calif., at 4.89.

Although Dell sells primarily to end users, the company sells about 10 percent to 15 percent of its desktops
and notebooks through solution providers, said Cliff Mountain, Dell's vice president and general manager of
corporate accounts. Some Dell customers prefer to go through solution providers to take advantage of
value-added services, Mountain said.

"If I had to recommend [a desktop] to someone, I'd recommend Dell. They're the best in terms of quality," said
John Wardwell, owner of Infotek Computer Networks, Bangor, Maine. "Compaq is the best at real high-end
[products] because they've been making them for much longer; but Dell is the best at smaller machines."

Dell's direct model also allows it to deal directly with customers, which can be both good and bad, Mountain
said. "There is some pain associated with taking those phone calls, but there's also important feedback."

Solution providers gave Dell its widest lead in product availability, where its 5.76 bested Acer, which came in
second at 5.45. Mountain attributed that to Dell's build-to-order model.

But the build-to-order model also can create availability problems in emergency situations, said Scott Gilbert,
president of Unetra Systems Corp., New York. Because distributors are not stocking inventory, units are not
immediately available.

"If it's an emergency, we can't get it. Maybe as our relationship grows with them that won't be the case, but
we have to wait now," said Gilbert.

On the other hand, Gilbert said Dell was consistent with delivery times, which gives Unetra the ability to give
its customers accurate information. "Every once in a while, there's a delay, but more often than not they're
ahead of schedule," he said.

One area in which Dell had room for improvement was technical support, according to the survey. Dell's 5.35
finished second in this area to IBM's rating of 5.47. In the closely related area of training and certification, Dell
came in fourth at 4.28, more than a half-point behind Compaq.

"I've waited 30 minutes in a phone queue. I've heard others had to wait a lot longer," said Eddie Ellis, owner of
Service Center, a Statesville, N.C.-based VAR.

Part of the technical support problem is Dell's direct strategy, Wardwell said. "Problems with PCs from direct
vendors almost always take longer to solve," he said. "I've had people say to heck with the warranty.
Businesses need problems to be resolved quickly. They're not worried about being out a few dollars; they're
worried about keeping [their business] going."

But solution providers who are members of Dell's Premier Provider program report a different experience. "The
No. 1 reason I sell Dell is because they provide support for me," Gilbert said.

Dell's weakest area, in the eyes of solution providers, was in profitability and profit margins. Here, Dell finished
in last place at 4.27, which was more than seven-tenths of a point behind Acer (4.99), the profitability leader.

"Because Dell sells direct to end users, people already know what the price is," Ellis said.


2000 Champion
Manufacturer: Dell Computer Corp.
Popular Product: OptiPlex GX200
Key Strengths: Quality and reliability; availability

Partner Comment: "If I had to recommend [a desktop] to someone, I'd recommend Dell. They're the best in terms of quality." - John
Wardwell, Infotek



To: hlpinout who wrote (82783)6/18/2000 7:01:00 PM
From: hlpinout  Respond to of 97611
 
CRN Champions: Networking -- HP's Consistency
In PC Servers Wins The Race

CMP Media Inc. - Friday, June 16, 2000

Jun. 16, 2000 (Computer Reseller News - CMP via COMTEX) -- Solid. Not flashy, not sexy-just solid. Solution
providers in the CRN Champions survey picked Hewlett-Packard Co. as the top entry-level server vendor,
based on scores that were nothing if not consistent.

In the annual poll, 292 solution providers registered their satisfaction with vendors across eight areas. HP,
Palo Alto, Calif., took the top spot with an overall score of 5.44 out of a possible 7 points.

"The overall perception [of the HP NetServer line] is that it is a high-quality, rock-solid performer. We have a lot
of confidence in it," said Bob Moore, president of Digital Control Systems Inc., a systems integrator based in
Stoughton, Mass. "You can run anything on it and, depending on the model, scale it any way you want."

HP faced some stiff competition, however, edging out IBM Corp., Armonk, N.Y., (5.40); Compaq Computer
Corp., Houston, (5.38); and last year's winner, Dell Computer Corp., Round Rock, Texas (5.23).

The race was so tight that results needed to be rounded to the 100th place to produce a winner. Another
indication of the tight competition was that the champion came in first in only one area-profitability and profit
margins, where it earned a score of 4.77, beating IBM's 4.65.

Though HP did not take the competition by storm, solution providers saw something more valuable in the
vendor: consistent performance across all areas. HP took five second-place and two third-place finishes,
beating vendors that scored high in some categories but dropped off in others.

HP outshone the competition in profitability and profit margins, despite complaints that margins across the
industry have continued to drop. "[As for margins], the opportunity there is probably a little bit better,
especially with HP's recent promotion," said Denney Agen, business development manager at DPE Systems
Inc., an integrator based in Seattle. "If you engage HP early in the process, they are fairly good at winning
business."

The promotion Agen referred to was a program designed to cull new ISP, ASP and dot-com customers by
offering a free server for each one purchased, for up to five systems, said Debra Shore, headquarters channel
manager for HP. The offer was centered on HP's NetServer LPR, a product designed for the dot-com/ASP/ISP
market.

Solution providers had other good things to say about the vendor and were particularly pleased with HP's
technical support and service. "HP is exceptional in customer service," said John Eaton, president of Eaton &
Associates, a systems integrator based in San Francisco. "What makes them better is that it's easier to get
information from them."

"HP is known for its product support and service capabilities," said John Sheaffer, president of Sysix
Technologies LLC, a solution provider based in Oakbrook Terrace, Ill.

HP's support personnel are especially well-equipped to handle calls from small companies with little or no IT
staff, said Mike Hornung, president of integrator Elazar Computers, Waltham, Mass. "They are able to talk
them through problems," Hornung said.

It is the people on the other end of the support line that make HP's quality superior, said Jay Kline, operations
vice president of Waltham, Mass.-based HDK Sales. "[Their support representatives] have the knowledge to
provide assistance immediately, not just document the problem and then send it up the ladder," Kline said.

HP's second-place finishes in product quality and reliability (6.10) and compatibility and scalability (5.83)
came from solution providers' positive experiences with the NetServer line.

"[HP's entry-level servers] are very reliable. We use them in all types of applications, from NT applications to
file and print servers. They are well-tested, and there are no issues with crazy drivers that don't mix well," said
Sysix's Sheaffer. "I think it comes down to knowing what to expect from quality. Their pricing is in line with the
market, and you know you're not going to get any surprises."

"We have tried to put all of our installed base of customers on NetServers because of their extraordinary
stability and reliability. We've only had one or two documented warranty cases in the three-and-a-half years
we've been focused on HP," Kline said.

While the quality of HP's product is acknowledged throughout the hardware channel, some solution providers
said HP needs to do more to educate end users and gain mind share. "You don't see as many marketing
announcements on NetServer as from some of the other manufacturers," Agen said. "You fight a mental battle
as far as mind share. From an overall perspective, I don't think HP has done a good job positioning itself as
mission-critical on its servers."


2000 Champion
Manufacturer: Hewlett-Packard Co.
Popular Product: HP NetServer
Key Strengths
Profitability and profit margins

Partner Comment: "HP is exceptional in customer service. What makes them better is that it's easier to get information from them." -
John Eaton, Eaton & Associates