Top Talkbacks: Compaq's Solution Provider
Image Not Fixed Yet
By Peter Bochner, ChannelWeb, CRN
4:26 PM EST Fri., Jan. 05, 2001
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It was the week of the aftermath of the tragedy at
Edgewater Technology, and that topic resulted in many
somber talkbacks on the CRN message boards. But there
were other issues as well -- a $5 billion discrimination suit
filed against Microsoft, an executive shuttle at Network
Associates, the discovery of a flaw in Intel's new Pentium
4, and a CRNcover story on Compaq -- that generated a
flurry of talkbacks.
Let's begin with the top post of the week, an angry
response to a quote in the Compaq story.
Tarnished Solution Provider Image Still Not Fixed
In the article on Compaq, Michael Winkler, the company's
executive vice president of global business units, was
quoted as saying, "[The solution provider channel] is a
strong heritage we have had. We may have tarnished it a
bit, but we are back to polish it up again."
In response, Craig writes, "Compaq's tarnished [solution provider] image isn't fixed because
they now say so. Compaq still hasn't shipped the IPAQ H3650 models we've had on
backorder with Ingram since 8/2 or the related PC Card expansion accessory since 9/5, even
though the consumer models of these products have been in local stores for months. Try
explaining (to government purchasing agents) why their folks can shop at Best Buy during
the weekend and find stocked Compaq items that you've had on backorder for months. If
Compaq really wants to fix its tarnished image with the channel it should borrow an idea
from Nike and Just Ship It."
To respond to this post, click here.
Don't Blame Resellers For Bad Inventory Decisions
On the Compaq issue, Doug chimed in with: "Compaq [and their few VAR fans] continue to
try to spin the blame of bad product forecasting on the reseller channel. Can you imagine
Coke or Pepsi blaming their customers for having empty machines? Perhaps it's time for
Compaq to actually use some of their computing power [and less spin/media power] to
actually ship in sufficient quantity to meet most of their demand. We waited months after
Compaq discontinued their 8X DVD drives for their own ProLiant servers before they even
announced the replacement 12X units. That's not bad reseller information provided by the
channel, that's bad inventory, production and engineering decisions by Compaq."
To respond to this post, click here.
Lust For Easy Money?
There were many talkbacks in response to the $5 billion class-action discrimination suit filed
against Microsoft. After several readers criticized the suit as a lust for easy money, Bigharp
wrote: "The lead person in this lawsuit, Mr. Rahn Jackson, a black man in our industry for
over 17 years, worked his way through the ranks at Microsoft to the account manager level.
You're saying he doesn't have what it takes to get to the next level? So he has just enough
"stuff" to get there, but the others are much better than he at a higher level? Have you ever
heard of the glass ceiling or the good old boys network? Welcome to corporate [old
economy] America. Maybe it is about money to some degree, but to be looked over time
and again because of one's race. . . .They deserve the money [and more] that could have
been made had they been promoted accordingly."
To respond to this post, click here.
Look Beyond Percentages
Next, reader I Agree wrote, "What if the percentages reflect the number of qualified
applicants and not racial bias? It is not unusual for people to start looking at percentages
instead of at people, and that is dangerous ground. People are more important than a
percentage. I suspect looking at qualified applicants who were turned away in favor of
non-minorities would go further than trying to match some magic percentage numbers. Look
at the military. The military had a higher percentage of blacks than the population, due to
the larger number of applicants. Does this mean the Army discriminates against non-blacks?
There are deeper issues here than percentages can indicate."
To respond to this post, click here.
Screw-The-Channel Mentality?
Major financial losses at Network Associates Inc., and the ouster of CEO Bill Larson,
resulted in many talkbacks. Keith A. Ackerman writes, "It was only a matter of time before
poor management decisions and a screw-the-channel mentality caught up with NAI. NAI
sales reps are known for cutting deals directly with end-users and for offering discounts
that left significant amounts of money on the table. On the other hand, Symantec is healthy
because of its strong channel partnerships and a solid product line."
To respond to this post, click here.
Live By The Sword, Die By The Sword
On the subject of Network Associates, Lesley Chalmers wrote, "Their continuous
about-faces with pro- and anti-channel stances have come back to haunt them, as have their
ethics. Cutting staff on a whim to make the quarterly results look better has consequences.
Cutting their retail channel in June didn't help either. Bill Larson proved to himself that if
you live by the sword, you will die by the sword."
She continued in a second talkback. "Distribution is anything but unpredictable. With their
just-in-time ordering systems based on sell-through, they have procurement down to a
science, and their comp plans for buyers reflect this. Most vendors got out of channel
stuffing years ago. What I find unpredictable is NAI. They have an ingrained protocol of
giving lip service to the channel when they need the numbers, while actively taking any
business they can direct."
To respond to this post, click here.
Dear Intel: Please Fix The Hardware
In response to a CRN article on a flaw in Intel's new Pentium 4 that slows system
performance, Charles Elgas wrote, "Dear Intel: Unfortunately this flaw impacts me exactly
where my applications work the most. I hope to never encounter a board/CPU combination
with a glitch of this type in the future. Please fix the hardware before you release it again."
To respond to this post, click here.
Canny Microsoft Finds Shortcut
In response to a CRN article and many talkbacks on Microsoft's acquisition of Great Plains
Software, Ralph Gagne wrote, "Sam Walton understood distribution. Starbucks
understands distribution. Are Gates and Ballmer any less astute? The Great Plains
acquisition is all about gaining tens of thousands of new salespeople in the field. Great
Plains has one of the most proficient distribution channels of any software company today.
With this acquisition, Microsoft will have accomplished in a few years what may have taken
it 10 years or more to do independently, through its solution provider programs."
To respond to this post, click here.
Any Profit From Hardware Is Gravy
In response to a CRN cover story on a possible resurgence in sales of white
boxes -- and the obstacles to that resurgence -- Lyle Johnson wrote, "I noticed
this trend in 1994. As the prices of hardware have decreased, so have the
margins. You need to base your profit on services. Any profit from hardware is
gravy. Sell your products on quality, not price. You can still make profit on
hardware, but not as much as the good old days. I too am concerned with the
rapid changes in motherboard and processor design, but see it as a main part of
this business. Best thing to do is buy quality systems that provide BIOS upgrades
to cover the newer chip speeds whenever possible."
To respond to this post, click here.
The Developer's New Groove
One reader asked, "Why is Groove so much better than client/server? Wouldn't
there be inherent security issues with peer-to-peer?" Here is Notes developer
Mike Randolph's response: "Groove could greatly reduce the centralized admin
requirements for applications used by small groups, thereby increasing speed of
implementation and reducing cost. Groove will still require a server but the server
is dumb. Groove completely finesses the security issue by encrypting all
communications in a manner transparent to the users and by having the users
monitor the membership of any applications community."
To respond to this post, click here.
Former Sun Partners May Not Forgive
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Lastly, in response to an interview with Joseph Womack, vice president of Sun's
eSun Partner sales for the Americas, in which Womack discussed simplifying
Sun's partner program, reader Kukes wrote: "Sun bet the company on influencers
and e-integrators and in the process disenfranchised the best channel partners,
and the most forward thinking evangelists for Sun's technology in the reselling
community. After 'back-handing' this constituency, I am uncertain if these former
pure play Sun partners will forgive."
To respond to this post, click here.
Peter Bochner is the director of community at ChannelWeb. If you have any
ideas, advice or tips, send him an e-mail at pbochner@cmp.com or call him at
(781) 839-1288. |
